Divergence Engine (RSI Divergences) — Free Pine Script Indicator

Snapshots

Divergence Engine under Bitcoin 1h: the RSI with its 70 and 30 lines, Bull, Bear and hidden markers where each divergence was confirmed, and a table counting each type plus the most recent one and its age in bars.

The RSI pane on its own before the pivots and markers are added.

The markers, counters and the table at the end of the script.

How it works

ta.pivothigh and ta.pivotlow on the RSI find turning points, and the price at that same candle is read with the history operator.
Each new pivot is compared with the nearest earlier pivot between the minimum and maximum gap to classify regular or hidden divergence.
Markers appear on the confirmation bar, 5 bars after the pivot, instead of being shifted back, so the chart shows what could actually have been seen.

Settings

Setting	Default	What it does
RSI length	14	RSI period
Pivot bars left / right	5 / 5	Bars either side that define a pivot
Min / Max bars between pivots	5 / 60	How far apart two pivots can be
Show hidden divergences	true	Also detect hidden bull and bear

Source code

In TradingView: open the Pine Editor, create a new indicator, paste the code, then click "Add to chart".

divergence-engine.pine.txtGitHub Download

//@version=6
indicator("Divergence Engine", overlay = false, max_bars_back = 500)

rsiLen = input.int(14, "RSI length", minval = 2)
lb = input.int(5, "Pivot bars left", minval = 1)
rb = input.int(5, "Pivot bars right", minval = 1)
minGap = input.int(5, "Min bars between pivots", minval = 1)
maxGap = input.int(60, "Max bars between pivots", minval = 2)
showHidden = input.bool(true, "Show hidden divergences")

rsi = ta.rsi(close, rsiLen)
plot(rsi, "RSI", color.new(color.purple, 0), 2)
hline(70, "Overbought", color.new(color.gray, 40))
hline(30, "Oversold", color.new(color.gray, 40))

type Pivot
    int bar
    float osc
    float price

var array<Pivot> lows = array.new<Pivot>()
var array<Pivot> highs = array.new<Pivot>()

pl = ta.pivotlow(rsi, lb, rb)
ph = ta.pivothigh(rsi, lb, rb)
bool bull = false
bool hBull = false
bool bear = false
bool hBear = false

if not na(pl)
    Pivot c = Pivot.new(bar_index - rb, pl, low[rb])
    n = array.size(lows)
    if n > 0
        for i = n - 1 to 0
            Pivot p = array.get(lows, i)
            gap = c.bar - p.bar
            if gap > maxGap
                break
            if gap >= minGap
                bull := c.price < p.price and c.osc > p.osc
                hBull := showHidden and c.price > p.price and c.osc < p.osc
                break
    array.push(lows, c)
    if array.size(lows) > 20
        array.shift(lows)

if not na(ph)
    Pivot c = Pivot.new(bar_index - rb, ph, high[rb])
    n = array.size(highs)
    if n > 0
        for i = n - 1 to 0
            Pivot p = array.get(highs, i)
            gap = c.bar - p.bar
            if gap > maxGap
                break
            if gap >= minGap
                bear := c.price > p.price and c.osc < p.osc
                hBear := showHidden and c.price < p.price and c.osc > p.osc
                break
    array.push(highs, c)
    if array.size(highs) > 20
        array.shift(highs)

plotshape(bull, "Bull", shape.labelup, location.bottom,
  color.new(color.teal, 0), text = "Bull", textcolor = color.white)
plotshape(bear, "Bear", shape.labeldown, location.top,
  color.new(color.red, 0), text = "Bear", textcolor = color.white)
plotshape(hBull, "H Bull", shape.triangleup, location.bottom,
  color.new(color.teal, 40), text = "H Bull", textcolor = color.teal)
plotshape(hBear, "H Bear", shape.triangledown, location.top,
  color.new(color.red, 40), text = "H Bear", textcolor = color.red)

var int nBull = 0
var int nBear = 0
var int nHBull = 0
var int nHBear = 0
var string lastType = "none"
var int lastBar = na
nBull += bull ? 1 : 0
nBear += bear ? 1 : 0
nHBull += hBull ? 1 : 0
nHBear += hBear ? 1 : 0
if bull or bear or hBull or hBear
    lastBar := bar_index
    lastType := bull ? "Bull" : bear ? "Bear" : hBull ? "H Bull" : "H Bear"

var table t = table.new(position.top_right, 2, 7,
  bgcolor = color.new(color.black, 15), border_width = 1)
row(r, name, val, col) =>
    table.cell(t, 0, r, name, text_color = col)
    table.cell(t, 1, r, val, text_color = color.white)

if barstate.islast
    age = na(lastBar) ? "-" : str.tostring(bar_index - lastBar)
    row(0, "Divergence", "Count", color.white)
    row(1, "Bull", str.tostring(nBull), color.teal)
    row(2, "Bear", str.tostring(nBear), color.red)
    row(3, "H Bull", str.tostring(nHBull), color.teal)
    row(4, "H Bear", str.tostring(nHBear), color.red)
    row(5, "Most recent", lastType, color.yellow)
    row(6, "Age in bars", age, color.yellow)

Watch it built

This script is written and explained step by step in the video lesson.

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