This indicator for ThinkorSwim will help you detect bullish and bearish RSI divergences on your chart. A lot of people asked for this one after seeing the MACD divergence indicator. Well, here you go.
The header of this script also detailed how to set up the scanner that looks for RSI divergences, which often signal possible reversals.
Both the RSI divergence indicator and scanner was made by Mobius.
Another version created by Drew Griffith:
The header of this script also detailed how to set up the scanner that looks for RSI divergences, which often signal possible reversals.
Both the RSI divergence indicator and scanner was made by Mobius.
thinkScript Code
Rich (BB 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 DivergenceAnother version created by Drew Griffith:
Code:
# 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);Video Tutorial
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