Archived: RSI Divergence Indicator

[BenTen]

These are the archived posts for the RSI. The current thread can be found:​

https://usethinkscript.com/threads/rsi-divergence-indicator-with-scanner-for-thinkorswim.9626/​

This indicator for ThinkorSwim will help you detect bullish and bearish RSI divergences on your chart.
The header of this script also detailed how to set up the scanner that looks for RSI divergences, which often signal possible reversals.
There are a couple of versions for you to check out. The first by Mobius, the other by @cos251

thinkScript Code

# RSI_With_Divergence
# Mobius
# V01.01.2013
# 4.15.2019
#hint:<b>RSI with Divergence</b>

# Note: Install this as a new study. Save this study using the name above (the first line of code RSI_With_Divergence).

# To use this study as a scan; DO NOT TRY TO LOAD IT DIRECTLY IN THE SCANNER, IT WILL THROW AN ERROR MESSAGE. Go to the scan tab. Delete any existing scan criteria. Click Add Study Filter. Click the window under Criteria. In that drop down menu click Custom. Delete the existing study. Click Add Condition. Click the down arrow in the Select A Condition window. Click Study. Scroll down the List till you find RSI_With_Divergence and click it. Click on the Plot window and you can choose Dhigh or Dlow in addition to the default plot RSI. If you choose either of the divergence siganls choose is True from the center column. Click on the aggregation period at the top left and set the aggregation period you want scaned. Then click Save and when the popup window shows the warning that this is a custom scan chose OK. Now put the list of stocks you wish to scan in the Scan In box and chose any list you want that to intersect with. If you wish to make this a Dynamic WatchList, save this scan with a name such as RSI_With_Div_WL then in your Gadgets box click the little gear icon, locate the name of the scan you just saved and click it. As equities match the scan criteria they will populate the list.

declare lower;

input n = 14;        #hint nRSI: Periods or length for RSI

input Over_Bought = 70; #hint Over_Bought: Over Bought line

input Over_Sold = 30;   #hint Over_Sold: Over Sold line

def o = open;

def h = high;

def l = low;

def c = close;

def x = BarNumber();

def MidLine = 50;

def NetChgAvg = ExpAverage(c - c[1], n);

def TotChgAvg = ExpAverage(AbsValue(c - c[1]), n);

def ChgRatio = if TotChgAvg != 0

                  then NetChgAvg / TotChgAvg

                  else 0;

plot RSI = 50 * (ChgRatio + 1);

RSI.AssignValueColor(if RSI < Over_Sold

                     then color.yellow

                     else if RSI > Over_Bought

                     then color.yellow

                     else createColor(25, 75, 250));

plot OverSold = Over_Sold;

plot OverBought = Over_Bought;

def bar = BarNumber();

def Currh = if RSI > OverBought

                then fold i = 1 to Floor(n / 2)

                with p = 1

                while p

                do RSI > getValue(RSI, -i)

                else 0;

def CurrPivotH = if (bar > n and

                         RSI == highest(RSI, Floor(n/2)) and

                         Currh)

                     then RSI

                     else double.NaN;

def Currl = if RSI < OverSold

                then fold j = 1 to Floor(n / 2)

                with q = 1

                while q

                do RSI < getValue(RSI, -j)

                else 0;

def CurrPivotL = if (bar > n and

                         RSI == lowest(RSI, Floor(n/2)) and

                         Currl)

                     then RSI

                     else double.NaN;

def CurrPHBar = if !isNaN(CurrPivotH)

                then bar

                else CurrPHBar[1];

def CurrPLBar = if !isNaN(CurrPivotL)

                then bar

                else CurrPLBar[1];

def PHpoint = if !isNaN(CurrPivotH)

              then CurrPivotH

              else PHpoint[1];

def priorPHBar = if PHpoint != PHpoint[1]

                 then CurrPHBar[1]

                 else priorPHBar[1];

def PLpoint = if !isNaN(CurrPivotL)

              then CurrPivotL

              else PLpoint[1];

def priorPLBar = if PLpoint != PLpoint[1]

                 then CurrPLBar[1]

                 else priorPLBar[1];

def HighPivots = bar >= highestAll(priorPHBar);

def LowPivots = bar >= highestAll(priorPLBar);

def pivotHigh = if HighPivots

                then CurrPivotH

                else double.NaN;

plot PlotHline = pivotHigh;

    PlotHline.enableApproximation();

    PlotHline.SetDefaultColor(GetColor(7));

    PlotHline.SetStyle(Curve.Short_DASH);

plot pivotLow = if LowPivots

                then CurrPivotL

                else double.NaN;

    pivotLow.enableApproximation();

    pivotLow.SetDefaultColor(GetColor(7));

    pivotLow.SetStyle(Curve.Short_DASH);

plot PivotDot = if !isNaN(pivotHigh)

                then pivotHigh

                else if !isNaN(pivotLow)

                     then pivotLow

                     else double.NaN;

    pivotDot.SetDefaultColor(GetColor(7));

    pivotDot.SetPaintingStrategy(PaintingStrategy.POINTS);

    pivotDot.SetLineWeight(3);

# End Code RSI with Divergence

Another version created by Drew Griffith:

# RSIDIVERGENCE

declare lower;

input nRSI = 2;
input OverBought = 95;
input OverSold = 5;
input MidLine = 50;
input nTrend = 100;
input TrendLine = {EMA, SMA, default LRL, WMA};

# Global definitions
def h = high;
def l = low;
def c = close;

def cond1 = CompoundValue(1, if IsNaN(c)
                            then cond1[1]
                            else c, c);



# RSI Wilder with Divergence Markers
def NetChgAvg = WildersAverage(c - c[1], nRSI);
def TotChgAvg = WildersAverage(AbsValue(c - c[1]), nRSI);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;
plot RSI = round(50 * (ChgRatio + 1),0);
RSI.SetLineWeight(3);
RSI.AssignValueColor(if RSI < OverSold then Color.Green else if  RSI > OverBought then Color.Red else Color.Gray);

plot RSItrend;
switch (TrendLine) {
case EMA:
   RSItrend = ExpAverage(RSI, nTrend);
case SMA:
   RSItrend = Average(RSI, nTrend);
case LRL:
   RSItrend = InertiaAll(RSI, nTrend);
case WMA:
   RSItrend = WMA(RSI, nTrend);
}
RSItrend.SetLineWeight(1);
RSItrend.SetDefaultColor(Color.RED);

plot RSIOB = OverBought;
RSIOB.SetLineWeight(1);
RSIOB.SetDefaultColor(Color.Blue);
plot RSIOS = OverSold;
RSIOS.SetLineWeight(1);
RSIOS.SetDefaultColor(Color.Blue);

def lowestLow = if RSI > OverSold
               then l
               else if RSI < OverSold and
                       l < lowestLow[1]
               then l
               else lowestLow[1];
def lowestRSI = if RSI > MidLine
               then RSI
               else if RSI < MidLine and
                       RSI < lowestRSI[1]
               then RSI
               else lowestRSI[1];
def divergentLow = if RSI < OverSold and
                  l <= lowestLow[1] and
                  RSI > lowestRSI[1]
                  then OverSold
                  else Double.NaN;
plot DLow = divergentLow;
DLow.SetPaintingStrategy(PaintingStrategy.POINTS);
DLow.SetLineWeight(3);
DLow.SetDefaultColor(Color.YELLOW);

def highestHigh = if RSI < OverBought
                 then h
                 else if RSI > OverBought and
                         h > highestHigh[1]
                 then h
                 else highestHigh[1];
def highestRSI = if RSI < MidLine
                then RSI
                else if RSI > MidLine and
                        RSI > highestRSI[1]
                then RSI
                else highestRSI[1];
def divergentHigh = if RSI > OverBought and
                      h >= highestHigh[1] and
                      RSI < highestRSI[1] and
                      cond1 within 3 bars
                   then OverBought
                   else Double.NaN;

plot DHigh = divergentHigh;
DHigh.SetPaintingStrategy(PaintingStrategy.POINTS);
DHigh.SetLineWeight(3);
DHigh.SetDefaultColor(Color.YELLOW);

def AlertCond1 = DHigh == OverBought;
def AlertCond2 = DLow == OverSold;

#Alert(AlertCond1, "Divergent High", Alert.Bar, Sound.Bell);
#Alert(AlertCond1, "Divergent Low", Alert.Bar, Sound.Bell);

RSI Divergence Candles

Version 1.1 of RSI_Div_Candles per @High_Velocity request.
(Thx @germanburrito for AddChart() logic)
Fixed/Added the following:

1. Fixed hollow UP Candles - fix provided by @SleepyZ
2. Adjusted OB/OS option to turn on/off
3. Added Visual Divergence Lines - credit @SuryaKiranC

## RSI_DIV_CANDLES
##
##
## CREDITS
## Requested by @High_Velocity from orignal source https://www.tradingview.com/v/4VKd87zy/
##
##
## Removing the header Credit credits and description is not permitted, any modification needs to be shared.
##
## V 1.1 :    @cos251 - @SleepyZ provided fix for hollow UP candles.  @SuryaKiranC provided Divergence line identifier
##                      Added option to turn on/off OB/OS lines.
##
## V 1.0 :    @cos251 - Initial release per request from usethinkscript forum.  Logic appears to match, Candle wicks may need additional
##       :    tweaking; thanks to @germanburrito for sharing AddChart() logic

declare lower;

input useHL          = no;
input price          = close;
input fastLength     = 8;
input slowLength     = 55;
input smooth         = 10;
input overBought     = 70;
input overSold       = 30;
input showOBOS       = no;
input showDivergence = yes;

def fastRSI = reference RSI(length = fastLength, price = price);
def slowRSI = reference RSI(length = slowLength, price = price);

def smoothFastRSI = MovingAverage(AverageType.WILDERS,fastRSI,smooth);
def smoothSlowRSI = MovingAverage(AverageType.WILDERS,slowRSI,smooth);

def rsiHigh = if useHL then Max(RSI(length = fastLength, price = high),RSI(length=slowLength,price = high)) else MAX(fastRSI,slowRSI);
def rsiLow = if useHL then MIN(RSI(length=fastLength,price=low),RSI(length=slowLength,price=low)) else MIN(fastRSI,slowRSI);

def isBull = smoothFastRSI >= smoothSlowRSI;
def isExp = AbsValue(smoothFastRSI-smoothSlowRSI) >= AbsValue(smoothFastRSI[1]-smoothSlowRSI[1]);

def o = smoothSlowRSI;
def h = rsiHigh;
def l = rsiLow;
def c = smoothFastRSI;

# Plot UP candle with isBull only
def UpO1;
def UpH1;
def UpL1;
def UpC1;
if o < c and isBull
then {
    UpO1 = o;
    UpH1 = h;
    UpL1 = l;
    UpC1 = c;
} else {
    UpO1 = Double.NaN;
    UpH1 = Double.NaN;
    UpL1 = Double.NaN;
    UpC1 = Double.NaN;
}

# Plot UP candle with isBull and isExp
def UpO;
def UpH;
def UpL;
def UpC;
if o < c and isBull and isExp
then {
    UpO = o;
    UpH = h;
    UpL = l;
    UpC = c;
} else {
    UpO = Double.NaN;
    UpH = Double.NaN;
    UpL = Double.NaN;
    UpC = Double.NaN;
}

# Plot DOWN candle
def DnO;
def DnH;
def DnL;
def DnC;
if o > c
then {
    DnO = o;
    DnH = h;
    DnL = l;
    DnC = c;
} else {
    DnO = Double.NaN;
    DnH = Double.NaN;
    DnL = Double.NaN;
    DnC = Double.NaN;
}


# Plot DOWN candle with !isBull and !isExp
def DnO1;
def DnH1;
def DnL1;
def DnC1;
if o > c and !isBull and !isExp
then {
    DnO1 = o;
    DnH1 = h;
    DnL1 = l;
    DnC1 = c;
} else {
    DnO1 = Double.NaN;
    DnH1 = Double.NaN;
    DnL1 = Double.NaN;
    DnC1 = Double.NaN;
}

# Plot the new Chart
#AddChart(high = UpH1, low = UpL1, open = UpO1, close = UpC1, type = ChartType.CANDLE, growcolor = Color.PINK);
#AddChart(high = UpH, low = UpL, open = UpO, close = UpC, type = ChartType.CANDLE, growcolor = Color.GREEN);
AddChart(high = UpH1, low = UpL1, open = Upc1, close = Upo1, type = ChartType.CANDLE, growcolor = Color.PINK);
AddChart(high = UpH, low = UpL, open = Upc, close = Upo, type = ChartType.CANDLE, growcolor = Color.GREEN);
AddChart(high = DnH, low = DnL, open = DnO, close = DnC, type = ChartType.CANDLE, growcolor = Color.RED);
AddChart(high = DnH1, low = DnL1, open = DnO1, close = DnC1, type = ChartType.CANDLE, growcolor = Color.CYAN);

plot ob = if showOBOS then overBought else Double.NaN;
ob.SetDefaultColor(COLOR.RED);
plot os = if showOBOS then overSold else Double.NaN;
os.SetDefaultColor(COLOR.GREEN);

def BN = barnumber();

#Divergence Code

def RSI_H = if fastRSI > overBought then fold Ri = 1 to Floor(fastLength / 2) with Rp = 1 while Rp do fastRSI > GetValue(fastRSI, -Ri) else 0;
def RSI_PivotH = if (BN > fastLength and fastRSI == Highest(fastRSI, Floor(fastLength / 2)) and RSI_H) then fastRSI else Double.NaN;
def RSI_L = if fastRSI < overSold then fold Rj = 1 to Floor(fastLength / 2) with Rq = 1 while Rq do fastRSI < GetValue(fastRSI, -Rj) else 0;
def RSI_PivotL = if (BN > fastLength and fastRSI == Lowest(fastRSI, Floor(fastLength / 2)) and RSI_L) then fastRSI else Double.NaN;
def RSI_PHBar = if !IsNaN(RSI_PivotH) then BN else RSI_PHBar[1];
def RSI_PLBar = if !IsNaN(RSI_PivotL) then BN else RSI_PLBar[1];
def RSI_PHPoint = if !IsNaN(RSI_PivotH) then RSI_PivotH else RSI_PHPoint[1];
def RSI_LastPHBar = if RSI_PHPoint != RSI_PHPoint[1] then RSI_PHBar[1] else RSI_LastPHBar[1];
def RSI_PLPoint = if !IsNaN(RSI_PivotL) then RSI_PivotL else RSI_PLPoint[1];
def RSI_LastPLBar = if RSI_PLPoint != RSI_PLPoint[1] then RSI_PLBar[1] else RSI_LastPLBar[1];

def RSI_HighPivots = BN >= HighestAll(RSI_LastPHBar);
def RSI_LowPivots = BN >= HighestAll(RSI_LastPLBar);
def RSI_pivotHigh = if RSI_HighPivots then RSI_PivotH else Double.NaN;

plot RSI_plotHline = if showDivergence then RSI_pivotHigh else Double.NaN;
RSI_plotHline.EnableApproximation();
RSI_plotHline.SetDefaultColor(Color.LIME);
RSI_plotHline.SetStyle(Curve.SHORT_DASH);

plot RSI_pivotLow = if showDivergence and RSI_LowPivots then RSI_PivotL else Double.NaN;
RSI_pivotLow.EnableApproximation();
RSI_pivotLow.SetDefaultColor(Color.LIME);
RSI_pivotLow.SetStyle(Curve.SHORT_DASH);

plot RSI_pivotDot = if !IsNaN(RSI_pivotHigh) then RSI_pivo[IMG]https://i.imgur.com/BGDMrrq.jpg[/IMG]tHigh else if !IsNaN(RSI_pivotLow) then RSI_pivotLow else Double.NaN;
RSI_pivotDot.SetDefaultColor(Color.LIME);
RSI_pivotDot.SetPaintingStrategy(PaintingStrategy.POINTS);
RSI_pivotDot.SetLineWeight(3);

AddLabel(yes,"RSI:",Color.YELLOW);

UPPER STUDY VERSION 1.0 (per request from @TradeUp)
This is the upper version as requested (pretty lean on code too).
For now only includes the candle coloring, will have to work on plotting the Divergence Lines.

## RSI_DIV_CANDLES_Upper
##
##
## CREDITS
## Requested by @High_Velocity from orignal source https://www.tradingview.com/v/4VKd87zy/
## Upper Study requested by @TradeUp
##
##
##
## V 1.0 :    @cos251 - Initial release of UPPER version per request from usethinkscript forum. Logic adopted from lower study
##       :    tweaking; thanks to @germanburrito for sharing AddChart() logic

declare upper;

input useHL          = no;
input price          = close;
input fastLength     = 14;
input slowLength     = 55;
input smooth         = 10;
#input showDivergence = yes;
input paintBars      = yes;


def fastRSI = reference RSI(length = fastLength, price = price);
def slowRSI = reference RSI(length = slowLength, price = price);

def smoothFastRSI = MovingAverage(AverageType.WILDERS,fastRSI,smooth);
def smoothSlowRSI = MovingAverage(AverageType.WILDERS,slowRSI,smooth);

def rsiHigh = if useHL then Max(RSI(length = fastLength, price = high),RSI(length=slowLength,price = high)) else MAX(fastRSI,slowRSI);
def rsiLow = if useHL then MIN(RSI(length=fastLength,price=low),RSI(length=slowLength,price=low)) else MIN(fastRSI,slowRSI);

def isBull = smoothFastRSI >= smoothSlowRSI;
def isExp = AbsValue(smoothFastRSI-smoothSlowRSI) >= AbsValue(smoothFastRSI[1]-smoothSlowRSI[1]);

def o = smoothSlowRSI;
def h = rsiHigh;
def l = rsiLow;
def c = smoothFastRSI;

AssignPriceColor(if paintBars and o < c and isBull and isExp then Color.GREEN else if paintBars and o > c and !isBull and !isExp then Color.CYAN else if paintBars and o > c and !isBull then Color.RED else if paintBars then Color.PINK else Color.CURRENT);

Video Tutorial

 

[Krishna]

Scan on daily bars is not displaying the results though study when plotted on the chart shows there is RSI Divergence....anything wrong with this search iam doing...

 

[thinky]

Trying to set a custom scan, but the explanation in the code doesn't agree with the actual variables used.

1) Text mentions Dhigh and Dlow, while under Plot you get PlotHline, pivotLow, PivotDot.

2) Within how many bars?

Should I use the info under MACD Divergence?

MACD Divergence Scanner

Bullish

MACD_Divergence_2019()."pivotLow" is true within 6 bars

Bearish

MACD_Divergence_2019()."PlotHline" is true within 6 bars

 

[Trading51]

Hello, How can i change the moving Exp Moving average to Wilders for the divergence?

 

[markos]

Hello, How can i change the moving Exp Moving average to Wilders for the divergence?

@Trading51 Mobius makes Proprietary indicators for Money Managers and Hedge Funds among others.
If he put an Exponential MA in there, then there is a very good reason for it.
If you feel you must change it, Type Universe in the Search Bar above and you'll find links and examples of how to make changes.
Good trading!

Also, please fill out your signature so that we know more of your point of view. Thanks!

 

[Trading51]

@Trading51 Mobius makes Proprietary indicators for Money Managers and Hedge Funds among others.
If he put an Exponential MA in there, then there is a very good reason for it.
If you feel you must change it, Type Universe in the Search Bar above and you'll find links and examples of how to make changes.
Good trading!

Also, please fill out your signature so that we know more of your point of view. Thanks!

im very familiar with divergence and exp is the wrong one, is there a specific thread on how to change it thanks

 

[markos]

im very familiar with divergence and exp is the wrong one, is there a specific thread on how to change it thanks

If you feel you must change it, Type Universe in the Search Bar above and you'll find links and examples of how to make changes.
Take no offense to my tone, please.

 

[Trading51]

im very familiar with divergence and exp is the wrong one, is there a specific thread on how to change it thanks

Im just learning how to use the website so forgive me for any wrong suggestion or attempts, but I did figure it out,

 

[Trading51]

If you feel you must change it, Type Universe in the Search Bar above and you'll find links and examples of how to make changes.
Take no offense to my tone, please.

coding can be difficult but if you play around with it these small ADJUSTMENTS ARE EASY AND MAKE GOOD PRACTICES,, CHEERS MATE, sorry for the caps LOL

 

[markos]

Very good. I'm glad you got it. Have a good evening!

 

[Trading51]

Very good. I'm glad you got it. Have a good evening!

You too and thanks for taking the time and replying!!

 

[febreezus]

I set up a scan query on this but it returns nothing... Does anyone have any idea why?

The scan query condition:

RSI_Divergence()."PlotHline" is true within 3 bars

The odd thing that it starts working at "within 7 bars" and higher. Same goes if you substitute "pivotLow" for "PlotHline".

 

[markos]

I set up a scan query on this but it returns nothing... Does anyone have any idea why?

The scan query condition:

RSI_Divergence()."PlotHline" is true within 3 bars

The odd thing that it starts working at "within 7 bars" and higher. Same goes if you substitute "pivotLow" for "PlotHline".

Very hard to say without knowing the list you scan in, time frame and other particulars. Please provide more information. There is nothing wrong with the code. Hopefully someone can help you as I will be in and out for a while.

 

[febreezus]

Oh, sorry, it's really ordinary: daily time frame, scanning all stocks. With no other conditions. I thought maybe there's something in the code preventing using this condition for less than "within 7 bars"? It seems strange that there would be hundreds of hits for "within 7 bars" and zero for "within 6 bars".

 

[markos]

With those conditions, I am surprised as well. Wish I could help but no real idea.

 

[febreezus]

Darn. I'd really like to get an RSI divergence scan working. Thanks very much for responding, though.

 

[NS78-TOS]

Hi! Just joined the website and have greatly enjoyed reading through all of the discussions and studies available - fantastic website. I just had a quick question regarding the RSI divergence indicator above. The divergence line (dotted) will appear at the close of the next candle, otherwise, the candle following the most recent high or low, correct? Also, if a new low or high is created afterward, the line will be replaced, right? Thank you in advance for your help - have a great weekend!

 

[BenTen]

@NS78-TOS Hey, that's correct. The divergences are slightly delayed due to waiting for confirmation from the candles. I have not used this in a while so I can't answer the second question, but I would assume that is the case.

 

[NS78-TOS]

Got it, thanks. Congrats again on a five-star website.

 

[NS78-TOS]

I realize this might be tricky but is there any way to amend this indicator to show past divergences? Right now, the indicator only shows the most recent bullish and bearish divergences but if this could be changed to show all past divergences either in the same window or even on the chart itself via arrows/etc., that would be phenomenal to back-test this tool with other strategies. Just an idea... thanks for your consideration! ;-)