Divergences

Divergences identify the subtle mismatch between Price and Momentum, often signaling an upcoming trend reversal.

Detection Logic

The indicator automatically scans for Regular Divergences using the internal Momentum Wave (MW1) values:

1. Regular Bullish Divergence:

   • Price makes a Lower Low.
   • Momentum Wave makes a Higher Low.
   • Indicates that selling pressure is weakening even though price is falling.
2. Regular Bearish Divergence:

   • Price makes a Higher High.
   • Momentum Wave makes a Lower High.
   • Indicates that buying pressure is exhausting even though price is rising.

Visual Clues

• Green Line: A bullish divergence has been detected between two pivot points.
• Orange Line: A bearish divergence has been detected between two pivot points.

Settings

You can adjust the Pivot Length and Range in the settings to filter for long-term or short-term divergences. Longer ranges typically provide more significant signals.