Divergence Detector MACD + RSI + AO Indicator on TradingView - Free - [TFlab]

The Divergence Detector Indicator (MACD, RSI, or AO) is an advanced tool that combines three types of divergences: MACD, RSI, and an AO Oscillator.

This oscillator automatically identifies positive and negative divergences using lines displayed in a panel outside the price chart.

It plays a key role in identifying reversal points and price movement changes. Additionally, it records information about divergences in a separate table.

Divergence Detector Indicator (MACD, RSI, or AO) Specifications Table

The specifications of the Divergence Detection Indicator (MACD, RSI, or AO) are as shown in the table below:

Indicator Performance in an Uptrend

Based on the Bitcoin (BTC) price chart in a 1-hour timeframe, the price formed lower highs (LH), while the oscillator (MACD Divergence) displayed higher lows (HL) as positive divergence.

Positive divergence can be a signal to enter buy trades.

Indicator Performance in a Downtrend

For example, in the USD/CAD currency pair chart in a 4-hour timeframe, the price formed higher highs (HH), whereas the indicator displayed lower highs (LL), indicating negative divergence.

Negative divergence signals an uptrend's end and a downtrend's beginning.

Indicator Settings

The settings of the Divergence Detection Indicator (MACD, RSI, or AO) can be seen in the image below:

• Fractal Periods: Fractal periods for identifying divergences set to 4;
• Divergence Detecte Method: Choose the method for detecting divergences among "MACD," "RSI," and "AO";
• Show Table: Display the divergence information table;
• Show Label: Display labels.

Conclusion

The Divergence Detector MACD + RSI + AO Oscillator enables the analysis and identification of divergences using three tools: MACD, RSI, and the AO Oscillator.

This indicator visually displays price divergences and identifies whether they are positive or negative using labels.

One of its features is the ability to display a divergence information table for validating signals.