Divergence

IndicatorsFrom Pro

• Oscillator
• High
• Low

Divergence

RSI 14 · 5 · 5

• bullish
• bearish

This is how the node looks on the board: inputs on the left, outputs on the right.

Price and oscillator move apart. Compares two consecutive lows (or highs) of an oscillator such as RSI or MACD with the price on the same candles. Bullish divergence: the price makes a lower low, the oscillator a higher one, so the sell-off is losing momentum. Bearish divergence: the price makes a higher high, the oscillator a lower one. A low only counts once the chosen candles after it have confirmed it; the node reports that many candles later, never in hindsight. Example: RSI 14 with Divergence on 4-hour candles reports “bullish” when BTC falls below its last low but the RSI stays higher.

What it looks like

• Bullish divergence
• Bearish divergence
• reported, low or high confirmed
• RSI 14

BTC/USDT candles with the RSI 14 below. Red: the price makes a higher high, the RSI a lower one, the bearish divergence. Green: the price makes a lower low, the RSI a higher one, the bullish one. The “Div” mark sits on the candle where the second high or low of the RSI is confirmed, 5 candles later; that is where the node reports, never in hindsight.

Setting it in the chart

In the properties, a chart shows the last 150 candles and below them the oscillator at the input, such as the RSI. Each divergence appears as a line between the two lows or highs, in the price and in the oscillator, green for bullish, red for bearish; the “Div” mark sits on the candle where it is reported. The chart follows every setting right away, such as “Candles after” or “Distance at most”.

More under Chart above the price.

Settings

The settings appear on the right under “Properties” once you click the node on the board. Below each field you find the same explanation as here.

Type

Default: Regular

Which divergence the node reports. For both types use two nodes.

• Regular (default): Bullish: the price makes a lower low, the oscillator a higher one. The sell-off is losing momentum, often before a turn up. Bearish the other way round at highs.
• Hidden: Bullish: the price makes a higher low, the oscillator a lower one. The pullback in an uptrend was deep in the oscillator but shallow in the price; many read this as the trend continuing. Bearish the other way round at highs.

Candles before

Default: 5 · from 1 to 50, whole number

How many candles before a low of the oscillator must all be higher, before a high lower. More candles: only clearer lows and highs.

Candles after

Default: 5 · from 1 to 50, whole number

How many candles after a low of the oscillator must not fall below it before it is confirmed. The divergence reports that many candles later; fewer candles report sooner, but also for smaller lows.

Distance at least

Default: 5 · from 1 to 200, whole number

At least this many candles must lie between the two lows or highs.

Distance at most

Default: 60 · from 2 to 500, whole number

At most this many candles may lie between the two lows or highs. The node no longer compares older lows.

Example

Bullish RSI divergence: the price falls below its last low while the RSI stays higher. Telegram notifies you 5 candles after the second low, once it is confirmed.

How to connect the nodes:

1. Candle (Price) → RSI (Value)
2. RSI (RSI) → Divergence (Oscillator)
3. Candle (High) → Divergence (High)
4. Candle (Low) → Divergence (Low)
5. Divergence (bullish) → Telegram (Trigger)

On the board it reads: RSI 14 · 5 · 5

Chain as JSON

To try it, copy it and paste it in the editor under “Import”. Importing creates a new chain.

divergence.json

{
  "name": "Example: Divergence",
  "version": 1,
  "nodes": [
    { "id": "c1", "type": "core.candle", "position": { "x": 40, "y": 40 }, "settings": { "pair": "BTC/USDT", "timeframe": "1h" } },
    { "id": "r1", "type": "core.rsi", "position": { "x": 260, "y": 40 }, "settings": { "length": 14 } },
    { "id": "d1", "type": "core.divergence", "position": { "x": 480, "y": 40 }, "settings": {} },
    { "id": "t1", "type": "core.telegram", "position": { "x": 700, "y": 40 }, "settings": {} }
  ],
  "edges": [
    { "from": "c1.close", "to": "r1.in" },
    { "from": "r1.out", "to": "d1.osc" },
    { "from": "c1.high", "to": "d1.high" },
    { "from": "c1.low", "to": "d1.low" },
    { "from": "d1.bull", "to": "t1.in" }
  ]
}

Inputs and outputs

Only matching types connect: number series to number series (round pin), signal to signal (square), message to message (diamond).

Direction	Pin	Type	Note
Input	Oscillator	Number series	required
Input	High	Number series	required
Input	Low	Number series	required
Output	bullish	Signal (true/false)	–
Output	bearish	Signal (true/false)	–

Good to know

• Warm-up with the default settings: 71 candles (this many extra candles are loaded by the replay before the value is reliable).
• Search also finds it under: divergence, rsi divergence, macd divergence, bullish, bearish, hidden, momentum, reversal.

Technical details

Pivot lows and highs of the oscillator as in the Swing points node (lower or higher than the candles before, at least as low or high as those after). Two consecutive pivots that lie the chosen number of candles apart are compared with the low or high of the candle at each pivot. Regular bullish: lower low, higher oscillator; hidden bullish: higher low, lower oscillator; mirrored at highs. Reported on the candle that confirms the second pivot. Built like the divergence script in TradingView, with the distance between the pivots instead of the candles in between.

• Type in the chain: core.divergence · Version 1.0.0 · Category key ind
• Settings in the chain: kind (Type), left (Candles before), right (Candles after), minBars (Distance at least), maxBars (Distance at most)
• Pins in the chain: Input osc, high, low · Output bull, bear
• Reference tests in the manifest: 2 (with fixed price data: 500 candles of 1h)
• How a node is built