Divergence Flag

27 Jun 2018

Used to spot divergences in the RSI. Currently does not deal with any hidden divergences.

Bearish Divergence
White means comparing Price and RSI to candle with lowest Price in the range and RSI is higher but Price is lower
Yellow means comparing Price and RSI to candle with lowest RSI in the range and and RSI is higher but Price is lower

Bullish Divergence
Red means comparing Price and RSI to candle with highest Price in the range and RSI is lower but Price is higher
Orange means comparing Price and RSI to candle with highest RSI in the range and and RSI is lower but Price is higher

Range and Colours and be Changed in Inputs. White and Red take preference over Yellow and Orange respectively.

27 Jun 2018

Nota Keluaran

Used to spot divergences in the RSI . Currently does not deal with any hidden divergences.

Bearish Divergence
White means comparing Price and RSI to candle with lowest Price in the range and RSI is higher but Price is lower
Yellow means comparing Price and RSI to candle with lowest RSI in the range and and RSI is higher but Price is lower

Bullish Divergence
Red means comparing Price and RSI to candle with highest Price in the range and RSI is lower but Price is higher
Orange means comparing Price and RSI to candle with highest RSI in the range and and RSI is lower but Price is higher

Range and Colours and be Changed in Inputs. White and Red take preference over Yellow and Orange respectively.

Added Alerts

28 Jun 2018

Nota Keluaran

New Alert for either divergence, still in testing

5 Jul 2018

Nota Keluaran

Updated Colours, playing around a bit with changing lookback period depending on timeframe

6 Jul 2018

Nota Keluaran

Allows small moves to be picked up as well. Sideways movements may cause useless signals.

9 Jul 2018

Nota Keluaran

Minor Edit

5 Ogo 2018

Nota Keluaran

I have updated your Divergence Flag. RSI is Saiyan, the original divergence flag is Super Saiyan and now this is SSJ2. I am working on the forms above this, hopefully I can someday get to that mastered ultra instinct form. However, I need your help to get there. The RSI divergence flag is just meant to alert you to a possible change in direction but you will still need to do some other checks to see if a reversal is likely. I would like to know what are some of the checks you do, maybe we can build it in together. Maybe you check for a histogram tick from a lower timeframe or a large wick on the lower timeframe. I think those who follow Philakone use these type of strategies a lot. Unfortunately we can't programme in an Elliot Wave count so I would like to know what other information do you think would make the signals you receive better. If you use this flag to scalp or other forms of trading I would just like to know how and what lookback periods you use for which timeframes. I am working on a couple things but I probably won't share that unless I get good engagement from others. Just message me on Twitter: CryptoKnight (@Crypto_Horsey) to discuss.

On to how to actually use the indicator. I have changed the algorithm to be more efficient which means one check covers both that were done previously so you will only see one colour on the RSI now. Yellow indicates bullish divergence and red for bearish. You can specify up to 3 lookback periods which should have the long lookback as the longest or the indicator won't work properly. The 3 lookbacks are to catch RSI on different levels. The long is intended to catch divergence in 2 peaks with small catching divergence coming from the current move. You can leave out medium if you want; it's just there to give you more flexibility in lookback periods. The code basically looks for the highest rsi in the period you specified to find the most extreme RSI and compare that to what we have in our current candle. You can also choose to ignore RSI divergence that happened with a candle in a recent period, e.g. candle has technical divergence to a candle 2 candles prior but you want to only catch divergence that happened to a candle further back to catch big move divergences. The Ignore Recent Divergence Variable basically ignores the divergence if it happened from a point within your specified amount of candles. Also I do not include wicks, RSI is based off of closing values so it makes no sense to look at wicks over the candle closes when looking for divergence.

You should play around with lookback periods to see what works best for each timeframe and then set your alerts on that. I would also like feedback on what lookback you find best for each period and I might even create code for you that automatically switches to the chosen periods depending on the timeframe. The initial flag I had actually had this automatic switching but I thought that would be harder to follow for someone who hasn't seen the code. You can also choose divergence should only show in extreme territories both for the initial point that divergence originates from and the current one. You can set what values for RSI you define as extreme.

This explanation has already gone on long enough and I need to rush back to playing Nioh so that'll be that for now, message me on Twitter if you have any questions and if I think people are finding something unclear I'll post more about it there since there I can provide charts as well which explaining.

P.S. The indicator works best when you play the Vegeta Theme in the background (youtube.com/watch?v=M954D_jyJbQ)

23 Ogo 2018

Nota Keluaran

Added Super Divergence which means there is both a long and short divergence present at the same time. Also removed the medium divergence. Divergence is usually used to identify the end of wave 5 by finding divergence between wave 3 and 5. Super divergence finds this as well as the shorter divergence which could indicate divergence between wave 3 of 5 and wave 5 of 5. If you get the super signal, check that it is indeed trending and not sideways and then enter for a quick scalp. A stop could be on a candle close where there is no form of divergence. Go back in time and see how good this was for a 1% scalp on each signal and also how to manage stops. The default settings I think work well for 1 hour, for 15 min perhaps put the long lookback at 100 but it's best to play around with these settings.

Orange is Super Bearish Divergence and White is Super Bullish Divergence. You can set alerts just on the super version or the normal version alerts will cover both normal and super. As always HMU on Twitter if you have any questions.

28 Mei 2020

Nota Keluaran

Updated to version 4.
Corrected the Second lookback for super divergence.

Full Overview
Super Divergence: Alerts you if there is both a long and short divergence simultaneously, essentially meaning we are losing a lot of steam
Initial Overbought /Sold: Whether the initial high/low point must be in extreme territories
Super Second Overbought/ Sold: Only works with Super Divergence on, whether the short divergence initial point must also be in extreme territory
Final Overbought / Sold: Whether our final point itself must also be in extreme territories

Look back in release notes for explanations of the other options and colours

Let me know if there's any divergences not working the way you expect

18 Feb 2021

Nota Keluaran

Updated with a cleaner chart

18 Feb 2021

Nota Keluaran

Cleaner