The price is for the package.
This product is part of the: RSI Divergence Indicator all-in-one package for Thinkorswim
This is an advanced version of RSI Divergence indicator for Thinkorswim.
RSI Divergence indicator gives possible reversal signals when there are discrepancies between RSI and price movement.Divergence emerges when price and oscillator indicator move in different directions.
There are more than one algorithm can be used to define a divergence.
This divergence indicator used the following method to check if there is a divergence signal on the chart.
First, it will locate the recent price high (High1) within the given range(from input length1) and the RSI1 value at the same bar of High1.
Secondly, it will locate the previous price high (High2) (from input length2) and the RSI2 value at the same bar of High2.
Then it will check if there is a divergence based on High1, High2, RSI1 and RSI2.
How to use:
The purpose of divergence indicator is to spot when price indicator trend are moving into opposite directions.
First, we need to locate the recent High1 and its RSI1 value within the given range(length1).
Secondly, we find the previous High2 and its RSI2 value within the given range(length2).
Then we compare the ratio of these 2 Highs and RSI values to determine if they meet the percentage you set.
For example, if you set "percent=3", then it will check if High1 is greater than High2 by 3%. If you set "RSI percent=5" then it will check if RSI1 is less than RSI2 by 5%.
If both percent conditions are met, there will be a red arrow pointing downward.
The indicator will find the recent Low1 and its RSI1 value within the given range(length1).
And then it will find the previous Low2 and its RSI2 value within the given range(length2).
If you set "percent=1", then it will check if Low1 is less than Low2 by 1%. If you set "RSI percent=5" then it will check if RSI1 is greater than RSI2 by 5%.
If both percent conditions are met, there will be a green arrow pointing upward.
Please note: in order to plot this indicator on both price chart and lower chart, you need to load it in 2 places. And set RSI_mode to "Upper" in Price chart and RSI_mode to "lower" in Lower chart. As shown in the following picture.
If you want the same signals on both charts, all parameters have to be consistent on both sides.
This indicator works in any time period and applicable for all securities(Stocks, Futures, Forex, Options, ETF, etc.).
When you use this indicator in a minute chart, it's better to set "percent" less than 1, otherwise, lots of signals will be filtered.
If you want to add any feature to this indicator, please send us a Customization request.
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