Market Cipher Style Divergence Detector

Market Cipher B Divergence Indicator — Description
This indicator is a custom implementation inspired by Market Cipher B, focusing on detecting bullish and bearish divergences between price action and a composite oscillator.

Key Features:

Composite Oscillator: Combines WaveTrend, RSI, and Stochastic RSI to mimic Market Cipher B’s momentum oscillator.

Pivot Detection: Automatically identifies swing highs and lows in price to locate potential reversal points.

Divergence Signals:

Regular Bullish Divergence: Price forms lower lows while oscillator forms higher lows — indicating potential bullish reversal.

Hidden Bullish Divergence: Price forms higher lows while oscillator forms lower lows — signaling continuation of an uptrend.

Regular Bearish Divergence: Price forms higher highs while oscillator forms lower highs — signaling potential bearish reversal.

Hidden Bearish Divergence: Price forms lower highs while oscillator forms higher highs — indicating continuation of a downtrend.

Price Chart Alerts: Divergence signals are plotted directly on the price chart for easy visual identification.

Customizable Pivot Lookbacks: User inputs allow tuning sensitivity for pivot detection and signal frequency.

Oscillator Plot: The underlying oscillator is plotted for reference, providing insight into momentum strength.

Intended Use:

This tool is designed to help traders spot early trend reversals and continuations by identifying divergences, which are powerful signals often missed by simple momentum indicators alone.

Note:
As with any technical indicator, divergences should be confirmed with additional tools or price action analysis to reduce false signals.