Adaptive Regime Filter + Diverge…: Free TradingView Indicator (Pine Script)

Add It to Your TradingView Chart

1Copy the scriptPress Copy script above, or the copy button on the code below.
2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
3Paste over the templateCreate a new indicator, select all of the template text and paste. Press Save and give it a name.
4Add it to the chartPress Add to chart, then adjust the settings with the gear icon next to its name.

Source Code

163 lines of Pine Script v6 from strategies/adaptive_regime_filter_divergence_aer_vn_keyalgos/8qT99GymFOSVb2bbAaMQ_code.pine, published under MPL-2.0 (file header). Keep the author's credit and licence lines when you reuse it.

8qT99GymFOSVb2bbAaMQ_code.pine

// This Pine Script® code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © KeyAlgos
//@version=6
indicator("Adaptive Regime Filter + Divergence (AER-VN) [KEYALGOS]", shorttitle="AER+Div [KEYALGOS]", overlay=false, format=format.price, precision=2)

// ========================================================================= //
// =============================== INPUTS ================================== //
// ========================================================================= //
grp_er    = "Efficiency Ratio Settings"
length    = input.int(10, title="ER Lookback (N)", minval=2, group=grp_er)
baseEr    = input.float(0.25, title="Base ER Threshold", step=0.05, minval=0.05, maxval=0.8, group=grp_er)
maxErCap  = input.float(0.65, title="Max Threshold Cap", step=0.05, minval=0.1, maxval=0.99, group=grp_er)

grp_vol   = "Volatility Normalization"
atrLength = input.int(14, title="ATR Length", minval=1, group=grp_vol)
atrMeanLen= input.int(50, title="ATR Mean Lookback", minval=5, group=grp_vol)

grp_div   = "Divergence Settings"
divLength = input.int(10, title="Swing Definition Length", minval=3, group=grp_div)

// Marker Toggles
showReg   = input.bool(true, title="Show Regular Div Markers", group=grp_div)
showHid   = input.bool(true, title="Show Hidden Div Markers", group=grp_div)

// Line Toggles
showRegBearLine = input.bool(true, title="Line: Regular Bearish", group=grp_div)
showRegBullLine = input.bool(true, title="Line: Regular Bullish", group=grp_div)
showHidBearLine = input.bool(true, title="Line: Hidden Bearish", group=grp_div)
showHidBullLine = input.bool(true, title="Line: Hidden Bullish", group=grp_div)

grp_vis   = "Visuals"
showBars  = input.bool(true, title="Color Price Bars", group=grp_vis)

// ========================================================================= //
// ======================= CORE AER + VOLATILITY =========================== //
// ========================================================================= //

float displacement = math.abs(close - close[length])
float pathDistance = math.sum(math.abs(close - close[1]), length)
float er = pathDistance != 0 ? (displacement / pathDistance) : 0.0

float currentAtr = ta.atr(atrLength)
float meanAtr    = ta.sma(currentAtr, atrMeanLen)
float atrRatio   = meanAtr != 0 ? (currentAtr / meanAtr) : 1.0

float rawThreshold     = baseEr * atrRatio
float dynamicThreshold = math.min(rawThreshold, maxErCap)

// ========================================================================= //
// ======================= REGIME CLASSIFICATION =========================== //
// ========================================================================= //

bool isTrending  = er > dynamicThreshold
bool isUptrend   = isTrending and (close > close[length])
bool isDowntrend = isTrending and (close < close[length])

bool isNonTrending   = er <= dynamicThreshold
bool isChop          = isNonTrending and (currentAtr > meanAtr)
bool isConsolidation = isNonTrending and (currentAtr <= meanAtr)

color colUp   = color.new(color.teal, 0)
color colDown = color.new(color.maroon, 0)
color colChop = color.new(color.orange, 0)
color colCons = color.new(color.gray, 0)

color regimeColor = switch
    isUptrend       => colUp
    isDowntrend     => colDown
    isChop          => colChop
    isConsolidation => colCons
    => color.gray

barcolor(showBars ? regimeColor : na)

// ========================================================================= //
// ================== ZERO-LAG DIVERGENCE DETECTION ======================== //
// ========================================================================= //

bool swingHighConfirm = (close[1] == ta.highest(close, divLength)[1]) and (close < close[1])
bool swingLowConfirm  = (close[1] == ta.lowest(close, divLength)[1])  and (close > close[1])

var float lastHighPrice = na
var float lastHighER    = na
var int   lastHighBar   = na

var float lastLowPrice  = na
var float lastLowER     = na
var int   lastLowBar    = na

bool regBear = false
bool regBull = false
bool hidBear = false
bool hidBull = false

if swingHighConfirm
    float currentHighPrice = close[1]
    float currentHighER    = er[1]
    int   currentHighBar   = bar_index[1]
    
    if not na(lastHighPrice)
        // Reg Bearish: Price Higher High, ER Lower High
        if (currentHighPrice > lastHighPrice) and (currentHighER < lastHighER)
            regBear := true
            if showRegBearLine
                line.new(lastHighBar, lastHighER, currentHighBar, currentHighER, color=color.red, style=line.style_dotted, width=2)
                
        // Hidden Bearish: Price Lower High, ER Higher High
        if (currentHighPrice < lastHighPrice) and (currentHighER > lastHighER)
            hidBear := true
            if showHidBearLine
                line.new(lastHighBar, lastHighER, currentHighBar, currentHighER, color=color.orange, style=line.style_dotted, width=2)
            
    lastHighPrice := currentHighPrice
    lastHighER    := currentHighER
    lastHighBar   := currentHighBar

if swingLowConfirm
    float currentLowPrice = close[1]
    float currentLowER    = er[1]
    int   currentLowBar   = bar_index[1]
    
    if not na(lastLowPrice)
        // Reg Bullish: Price Lower Low, ER Higher Low
        if (currentLowPrice < lastLowPrice) and (currentLowER > lastLowER)
            regBull := true
            if showRegBullLine
                line.new(lastLowBar, lastLowER, currentLowBar, currentLowER, color=color.lime, style=line.style_dotted, width=2)
                
        // Hidden Bullish: Price Higher Low, ER Lower Low
        if (currentLowPrice > lastLowPrice) and (currentLowER < lastLowER)
            hidBull := true
            if showHidBullLine
                line.new(lastLowBar, lastLowER, currentLowBar, currentLowER, color=color.aqua, style=line.style_dotted, width=2)
            
    lastLowPrice := currentLowPrice
    lastLowER    := currentLowER
    lastLowBar   := currentLowBar

// ========================================================================= //
// ============================== PLOTTING ================================= //
// ========================================================================= //

// Base Oscillator
plot(er, title="Efficiency Ratio", color=regimeColor, linewidth=2, style=plot.style_line)
plot(dynamicThreshold, title="Dynamic Threshold", color=color.new(color.white, 50), linewidth=1, style=plot.style_cross)
hline(baseEr, title="Base Threshold", color=color.new(color.gray, 50), linestyle=hline.style_dotted)

// Divergence Visuals (Shapes exactly on the ER line, set to tiny)
plotshape(showReg and regBear ? er[1] : na, title="Regular Bearish", location=location.absolute, color=color.red, style=shape.circle, size=size.tiny, offset=-1)
plotshape(showReg and regBull ? er[1] : na, title="Regular Bullish", location=location.absolute, color=color.lime, style=shape.circle, size=size.tiny, offset=-1)

plotshape(showHid and hidBear ? er[1] : na, title="Hidden Bearish", location=location.absolute, color=color.orange, style=shape.circle, size=size.tiny, offset=-1)
plotshape(showHid and hidBull ? er[1] : na, title="Hidden Bullish", location=location.absolute, color=color.aqua, style=shape.circle, size=size.tiny, offset=-1)

// Dashboard States
plotchar(isUptrend, title="State: Uptrend", char="", color=colUp, display=display.data_window)
plotchar(isDowntrend, title="State: Downtrend", char="", color=colDown, display=display.data_window)
plotchar(isChop, title="State: Choppiness", char="", color=colChop, display=display.data_window)
plotchar(isConsolidation, title="State: Consol", char="", color=colCons, display=display.data_window)

// Alerts
alertcondition(regBear, title="Regular Bearish Divergence", message="ER Bearish Divergence Detected")
alertcondition(regBull, title="Regular Bullish Divergence", message="ER Bullish Divergence Detected")

Overview

Adaptive Regime Filter + Divergence (AER-VN) [KEYALGOS] classifies market states into uptrend, downtrend, choppy, or consolidation regimes and colors price chart bars accordingly. It also detects regular and hidden divergences based on configurable swing lookback lengths, drawing markers and divergence lines. The indicator plots in a separate pane, allowing traders to evaluate trend efficiency alongside price action. Key settings include lookback lengths, ATR smoothing, and visual toggles.

Kaufman Efficiency Ratio calculation
Volatility-normalized dynamic threshold
Market regime classification
Regular and hidden divergence detection
Regime-based price bar coloring

Details

Published by

Focal-QuantAI on GitHub

Code credit

KeyAlgos, as written in the script's header

Type

Indicator, Pine Script v6

Draws

Separate pane below the chart

Markets

Any symbol

Timeframes

Any timeframe

Risk Notes

No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.

File

strategies/adaptive_regime_filter_divergence_aer_vn_keyalgos/8qT99GymFOSVb2bbAaMQ_code.pine

Repository

github.com/Focal-QuantAI/QuantAI-Blog. See its other scripts in the library

Settings

The inputs you can change from the gear icon on the chart. Defaults are the author's.

Setting	Type	Default	Variable
ER Lookback (N)	`int`	`10`	`length`
Base ER Threshold	`float`	`0.25`	`baseEr`
Max Threshold Cap	`float`	`0.65`	`maxErCap`
ATR Length	`int`	`14`	`atrLength`
ATR Mean Lookback	`int`	`50`	`atrMeanLen`
Swing Definition Length	`int`	`10`	`divLength`
Show Regular Div Markers	`bool`	`true`	`showReg`
Show Hidden Div Markers	`bool`	`true`	`showHid`
Line: Regular Bearish	`bool`	`true`	`showRegBearLine`
Line: Regular Bullish	`bool`	`true`	`showRegBullLine`
Line: Hidden Bearish	`bool`	`true`	`showHidBearLine`
Line: Hidden Bullish	`bool`	`true`	`showHidBullLine`

Show all 13 settings

Setting	Type	Default	Variable
Color Price Bars	`bool`	`true`	`showBars`

Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.

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