RSI Divergence signal® [BlackRock_et]

RSI Divergence signal® [BlackRock_et] — Overview

Overlay indicator that detects regular and hidden RSI divergences and optionally draws price lines between pivot points.
Includes two engines: a Core RSI(5) divergence module with smoothing and a MOST-style module that mirrors the classic “RSI(14) + pivot” logic. Generates Buy/Sell labels and exposes four alert conditions.

How it works

RSI Core (default):

RSI baseline: RSI(5) zero-centered (–50…+50), optional smoothing (SMA/EMA/WMA).

Pivots: price pivots use pivotLeft=7 / pivotRight=1; RSI pivots are synchronized within pivotSyncBars=5.

Regular divergences:

Bullish: price lower low + RSI higher low.

Bearish: price higher high + RSI lower high.

Hidden divergences (optional):

Hidden Bullish: price higher low + RSI lower low.

Hidden Bearish: price lower high + RSI higher high.

On confirmation, the script can draw a dotted/solid price line between the two pivots and place a label at the second pivot.

MOST-style module (optional):

RSI source RSI(14) on close with lookbackLeft=5 / lookbackRight=5.

Signals only when the previous pivot falls within a time gate (5–60 bars).

Detects regular bullish/bearish divergences and plots labels; optional price lines between the two swing points.

Plots & labels (what you see)

Buy/Sell labels: “B” for bullish, “S” for bearish; hidden divergences add “(H)”.

Optional price lines between the two price pivots (toggleable).

Colors for regular/hidden bull/bear and label styles are user-configurable.

Inputs (user controls)

Show Regular Divergence (Core) — on/off

Show Hidden Divergence (Core) — on/off

Use MOST-style Divergence — on/off

Draw Price Lines — draw/remove lines between pivots

Delete Broken Lines — when new lines overlap older ones, delete older lines instead of downgrading them to dotted

Colors — bull/bear (regular & hidden) and label BG/text colors

Core engine lengths, pivot distances, smoothing and MOST params are locked in code for consistency across users.

Alerts

Four ready-to-use alertconditions:

Buy (Bullish Divergence — Core)

Sell (Bearish Divergence — Core)

Buy (Bullish Divergence — MOST)

Sell (Bearish Divergence — MOST)

Usage notes

Timeframes/markets: Works on any symbol/timeframe; for cleaner pivots, consider H1+ on volatile markets (crypto/FX/indices/equities).

Confirmation timing: Signals appear after pivot confirmation (pivotRight=1) and are evaluated on bar close.

Lines & clutter: If your chart becomes busy, either disable Draw Price Lines or enable Delete Broken Lines.

Chart types: Designed for standard candles; alternative chart types (Heikin Ashi, Renko, Range, etc.) can distort divergence logic.

Not auto-trading: Labels/alerts are contextual indications, not standalone entries. Always confirm with your own rules and risk control.

Limitations

Pivot dependency: Divergences rely on swing identification; changing timeframe or extreme volatility may shift which pivots qualify.

No MTF sources: Signals are computed on the chart’s timeframe; there is no request.security() MTF in this script.

Label/line caps: Internally manages arrays and respects max_lines_count / max_labels_count; excessive history may be trimmed.

Release notes

v1.0 (2025-09-10): Initial public release with Core (regular/hidden) and optional MOST-style divergences, price-line drawing, and four alertconditions.