Divergence Confluence Oracle

Only Divergences That Matter

Overview
This indicator supercharges RSI divergence with powerful filters: volume, ADX, and support/resistance (S/R) zones. It pinpoints high-probability reversals in the RSI 30–70 "neutral zone", where turnarounds shine. Built for manual traders, it’s your edge for spotting reversals that pack a punch.

🔍 Core Features

1.RSI Divergence Detection
- Bullish: Price lower low, RSI higher low.
- Bearish: Price higher high, RSI lower high.
- Pivot-based logic ensures precise, non-repainting signals.
- Plotted with color-coded lines/labels (green/red for RSI 30–70, gray outside).

2.Volume Confirmation
- Filters for high activity: volume > SMA(volume, 20) × 1.5.
- Why: High volume signals big players are in, boosting divergence reliability—like the market’s vote of confidence.

3.ADX Trend Filter
- ADX < 20 signals range-bound markets where divergences excel, avoiding trend-driven failures.
- Why: Keeps you out of strong trends where divergences often flop.

4.Support/Resistance (S/R) Zones
Built on LonesomeTheBlue’s pivot-channel method, ranking zones by strength (touches).
Why: Divergences near support (bullish) or resistance (bearish) are high-probability, cutting false signals.

🎨 Visualization
- Color-coded lines/labels: Bright green/red for RSI 30–70, muted gray outside.
- Thicker lines for volume/ADX-confirmed setups.
- Subtle background fills (green/red for confirmed, gray for ranges) make setups pop.
- Alerts for RSI 30–70 divergences, with optional volume/ADX filters.

✅ Why This Indicator is Unique
Unlike basic divergence scripts, it asks:
- Is the market engaged? (Volume)
- Is it reversal-friendly? (ADX)
- Is price at a key level? (S/R)
This trio filters out noise, surfacing only divergences with true weight.

📊 How Traders Might Use It
- Signal Filter: Act on divergences with S/R, volume, and ADX alignment.
- Confluence Tool: Pair with manual trendlines, EMAs (e.g., 9/21), or candlestick setups.
- Alert System: Get notified of high-probability setups without endless scanning.

Disclaimer: This indicator is for educational purposes only and is not intended as financial advice. It should be used in conjunction with manual trendlines, EMAs, and other confirmation tools to support your trading decisions. Always conduct your own analysis.