1. Overview
Many traders use divergence as a way of recognizing when the market is losing strength in a particular direction. When comparing the price action against other indicators, traders can recognize moments of divergence when for example price continues to rise while at the same time the strength or momentum of the move decreases.
Using the TDU Divergence Indicator you can automatically spot possible reversal zones. The indicator will draw lines when divergence occurs on both the chart and chosen indicator so you are always aware when divergence is occurring without needing to put in any extra work.
2. Spots Hidden & Regular Divergence on any indicator
The indicator spots Hidden and Regular divergence on any other indicator plot. Choose your indicator and add the divergence indicator to it and it will simply detect any divergence on it. No matter if you want to see divergence on the RSI, MACD, Stochastics, or any other oscillator.. The Divergence indicator will allow you to simply detect any hidden and regular divergence
3. Alerts
The indicator supports alerts to notify you of the moment hidden or regular divergence is detected.
4. Bloodhound / automated strategies support
The indicator exports a signal plot that can be used in bloodhound/blackbird or your own ninja script strategies to detect (hidden) divergence
| Signal |
Value |
Description |
| -2 |
Bullish hidden divergence | |
| -1 | Bullish regular divergence | |
| 0 | no divergence | |
| 1 | Bearish regular divergence | |
| 2 | Bearish hidden divergence |
4.1 Example bloodhound template
You can download a simple bloodhound template here which shows divergence between price and the MACD indicator
5. Key Features
- Automatically draws divergence lines on both price chart and indicator chart in real-time
- Detects regular and hidden divergence
- Can detect divergence on any indicator
- Alerts
- Signals for strategy builders/bloodhound/blackbird
- Works on any instrument
- Works on any timeframe
- Works on any bar type
- Works with any NinjaTrader license
Changelog
23-05-2021 v1.0.1.2
- Fixed issue with latest bloodhound version
- added download link to sample bloodhound template (see above)
23-05-2021 v1.0.1.1
- Added signal plot for bloodhound/strategy builders
16-04-2021 v1.0.1.0
- fixed alerts sometimes not working
7. Media
Divergence on a MACD indicator
Divergence indicator settings
Divergence on the RSI indicator
Divergence on the Stochastics oscillator