RSI Divergence

The RSI Divergence module detects when price and momentum move in opposite directions, revealing hidden shifts in market strength before trend reversals occur.

This feature helps traders spot potential turning points that are often invisible in raw price action, making it a key element of the Ultimate RSI Suite.

Divergence

The indicator continuously compares swing highs and lows on RSI against swing highs and lows on price within a defined lookback range.

Regular Bullish Divergence: Price makes a lower low, while RSI forms a higher low. This signals weakening bearish momentum and a potential reversal upward.
Regular Bearish Divergence: Price makes a higher high, while RSI forms a lower high. This signals fading bullish strength and a possible reversal downward.

Each divergence is confirmed only when both RSI and price structure complete their swings, ensuring reliable signals rather than premature markings.

Controlled by the “Divergence Length” setting (default: 10). This defines how many bars the algorithm scans for relevant swing points.

Deviation Tracking (+1 / +2)

When enabled, Deviation Mode adds dynamic follow-through tracking to each divergence. It projects two Volatility-based levels labeled +1 and +2 from the signal candle to monitor how the market reacts after divergence confirmation.

+1 Cross: Indicates initial continuation strength.
+2 Cross: Signals strong confirmation that the reversal is developing.

Each level changes to a dashed style once price touches it, providing clear visual feedback that the deviation has completed.

This feature turns divergence detection into a fully interactive confirmation framework, not just static labeling.

Hidden Divergence

While regular divergence signals a potential trend reversal, hidden divergence suggests that the current trend is strong and likely to continue.

Hidden Bullish Divergence: Price makes a higher low, while RSI forms a lower low. This indicates that despite the dip in momentum, the buyers are still holding a higher floor, suggesting the uptrend will continue.
Hidden Bearish Divergence: Price makes a lower high, while RSI forms a higher high. This indicates that even though momentum spiked, the price couldn't break the previous ceiling, suggesting the downtrend will continue.