Are Divergence Indicators possible in ThinkOrSwim?

[Bingy]

Hey, so I make indicators from time to time, but I'm not a guru at ThinkScript. I've seen indicators on here that do a pretty good job at drawing trendlines, so I'm assuming my idea is possible, but it's out of my league to actually pull it off. I'm wondering, is it possible to use have an indicator that auto draw divergence lines on the chart itself and on the CCI indicator to make spotting divergence a lot easier? If so, I want a more extreme scenario to be picked up where there is a triple divergence. Not just (2) bounces, but (3) or more. See image for a quick example. If I can have something auto draw lines on both it would be awesome.

 

[MerryDay]

Hey, so I make indicators from time to time, but I'm not a guru at ThinkScript. I've seen indicators on here that do a pretty good job at drawing trendlines, so I'm assuming my idea is possible, but it's out of my league to actually pull it off. I'm wondering, is it possible to use have an indicator that auto draw divergence lines on the chart itself and on the CCI indicator to make spotting divergence a lot easier? If so, I want a more extreme scenario to be picked up where there is a triple divergence. Not just (2) bounces, but (3) or more. See image for a quick example. If I can have something auto draw lines on both it would be awesome.

There are many scripts on the forum that make attempts at divergences.
None of them, do the job very well. Part of the problem is, that the code must wait into the future for the divergences to form and then go back and repaint the signals. That lag eats profits and/or can result in a loss.

There are other issues with divergence scripting.
An analogy would be: Making an assumption that more people buy ice cream in the summer.
A valid observation.
But even though it is summer, sometimes people do not buy ice cream.
And sometimes people buy ice cream in the winter, and fall and the spring.

Same with divergences. Most research has found that divergences have the tendency to signal a potential reversal without the actual reversal materializing—a false positive.
Additionally, divergence doesn't consistently forecast all reversals, leading to the predicament of predicting numerous reversals that never transpire while missing actual price reversals.

Perhaps, you will have different results.
Here is a thread to start you on your quest:
https://usethinkscript.com/threads/rsi-obv-macd-stoch-cci-or-mfi-divergence-for-thinkorswim.13106/