πDivergence Detection
Divergence occurs when price and the oscillator move in opposite directions β a classic warning sign of potential reversals.
Bullish Divergence
Price makes a lower low, but the oscillator makes a higher low.
This suggests selling momentum is weakening despite lower prices. A bullish reversal may follow.
Displayed as a green line connecting the two oscillator lows.
A "Bull" label appears at the most recent low.
Bearish Divergence
Price makes a higher high, but the oscillator makes a lower high.
This suggests buying momentum is weakening despite higher prices. A bearish reversal may follow.
Displayed as a red line connecting the two oscillator highs.
A "Bear" label appears at the most recent high.
Divergence Strength
Enable Show Divergence Strength in settings to replace generic "Bull"/"Bear" labels with a strength rating:
Normal
First divergence detected β early signal.
Good
Second consecutive divergence β building conviction.
Strong
Three or more consecutive divergences β high-conviction reversal signal.
Tip: Divergences rated "Good" or "Strong" carry significantly more weight, especially when combined with other confluence factors from your trading plan.

Last updated