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 signal and forecast indicator 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 oscillator 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.