RSI Divergence Indicator for Think or Swim

This indicator has been updated!  See the new post here.

In a similar vein to my MACD and CCI Divergence indicators, here’s an indicator that checks for divergences between RSI and price. It’s basically just a modified version of the CCI divergence indicator I did, but using RSI instead. Also added is a filter that only plots signals if a bearish divergence is in overbought territory, and if a bullish divergence is in the oversold area. There are two indicators. The first, “Pro_RSIDivergence_v1STUDY.ts” looks for when the RSI values diverge from price making new swing highs or lows. The second, “Pro_LowerRSIDivergence_v1STUDY.ts” reverses the process, looking for price to diverge from new swing highs or lows on the RSI indicator itself, and is plotted in the lower panel. I would tend to use the upper one only, but you may want the other one, so I did it. I also added the alert code block that I highlighted earlier, so you can let it run on a chart and get alerted if a divergence shows up.

The two studies are found in “Pro_RSIDivergence_v1.zip” and can be downloaded in the “Donors Only” section of “Released Thinkscript Studies” on my Google site. As always, home-gamers can ask me any questions if they want to make one for free by themselves. The CCI tutorial covers all the same coding I used for this one.

Tags: , ,

8 Responses to “RSI Divergence Indicator for Think or Swim”

  1. Matthew Burke Says:

    How can I get this indicator? rsi divergence

  2. david yi Says:

    how about a divergence indicator for slow stochastics!

  3. Prospectus Says:

    Which line? %k or %d?

  4. Petro Says:

    Hi Prospectus,

    Would it be possible to make a lower-case indicator that calculates and displays divergence (positive and negative) between RSI bottoms and tops, calculating price targets for positive and negative reversals?

  5. Petro Says:

    Example Eminis, hourly chart, Amsterdam time:

    There is negative divergence in the RSI between 19.00 hrs (3/22/12), when RSI bottom = 34.8992, and 17.00 hrs (3/28/12), when RSI bottom = 27.5568. Corresponding prices at close in the index are 1387.5 and 1395.5, resulting in a difference of 8 points. The RSI top in between lies at 81.0982, when the index reached 1415.75. So, I add 8 points to the top in the index to arrive at a positive reversal of 1423.75. There is a strong probability that the target will be reached by Friday this week.

    Would be great to have divergencies and reversal targets automatically calculated and displayed in the lower-case RSI study. (I filter out false divergences by using a composite index.)

  6. dave Says:

    want the rsi divergence study, please contact me

  7. Karim Adel Says:

    What’s the password for the zip folder ?

  8. Prospectus Says:

    Just make any donation to the blog through the PayPal and it will be sent out to you. If you already donated in the past and need a reminder, email me directly at readtheprospectus @ gmail.

    >

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: