Multi Divergence Indicator in TradingView - Free - [TradingFinder]

Divergence in technical analysis occurs when price movement and the behavior of technical indicators, like RSI or MACD, move in opposite directions. This phenomenon may indicate potential trend reversals in price movements.

The Multi Divergence Indicator (Divergence Indicator Multi) is a practical tool for identifying divergences between price and various indicators such as AO, MACD, and RSI.

Specifications of the Multi Divergence Indicator

Indicator in an Uptrend

The price forms a new low on the EUR/USD chart in the 4-hour timeframe, while the selected indicator (default MACD) shows a higher low.

This divergence indicates reduced selling pressure and increased buying pressure, potentially reversing the trend and pushing the price upward.

Indicator in a Downtrend

On the USD/JPY chart in the 15-minute timeframe, if the price forms a higher high but the selected indicator (RSI) registers a lower high, this is a negative divergence.

This scenario indicates decreasing buying pressure and gradually increasing selling pressure in the market, suggesting a possible return to a downward trend.

Indicator Settings

• Fractal Periods: Defines the number of periods for identifying fractal points on the chart;
• Divergence Detection Method: Select the indicator for detecting divergences (default: MACD);
• Show Table: Displays a divergence data table on the chart;
• Show Label: Displays divergence-related labels on the chart.

Conclusion

This indicator simplifies and enhances the accuracy of divergence detection by combining several popular tools, such as MACD, AO, and RSI.

With this tool, traders can automatically and effortlessly identify divergences without complex manual analysis, helping them find suitable trading opportunities.