Clinic-GoldProsignal

Strategy Explanation: Stochastic Divergence Signal
This strategy utilizes the Stochastic Oscillator in combination with divergence detection to identify potential reversal points in the market.

Stochastic Calculation
The Stochastic Oscillator is calculated using a smoothed version of the %K and %D lines. These values help identify momentum and potential overbought or oversold conditions in the market.

Divergence Logic
The script detects two types of divergences between price action and the Stochastic indicator:

Bullish Divergence
Occurs when price makes a lower low, but the Stochastic forms a higher low, while also being in an oversold condition. This may indicate weakening bearish momentum and a potential upward reversal.

Bearish Divergence
Occurs when price makes a higher high, but the Stochastic forms a lower high, while also being in an overbought condition. This suggests weakening bullish momentum and a possible downward reversal.

Signal Plotting
A Buy Signal is generated when a bullish divergence is detected.

A Sell Signal is generated when a bearish divergence is identified.

These signals are visually displayed on the chart using arrows or labels positioned above or below the bars.

Alerts
The script also includes alert conditions that notify the trader whenever a buy or sell signal is triggered, allowing for timely decisions based on momentum shifts.