Capital41 Divergence Detector

// Copyright (c) 2026 Capital41 | MIT License
// CAPITAL41 DIVERGENCE DETECTOR v2 (RSI + Williams %R)

// What it does:
// - Detects regular and hidden divergences on RSI and Williams %R.
// - Regular divergence: price makes a new extreme but the oscillator does not
//   confirm it. Classic reversal signal.
// - Hidden divergence: oscillator makes a new extreme but price does not confirm.
//   Continuation signal within the existing trend.
// - Uses pivot-based swing matching for reliable, non-repainting detection.
//   Pivots require pivotLen bars of confirmation on each side before triggering.
// - Draws divergence lines on price between the two swing points.
// - Scores conviction: both RSI + W%R diverging together = highest confidence (DIV+).
//
// TradingView setup:
// 1) Open TradingView -> Pine Editor.
// 2) Paste this script, Save, and Add to chart.
// 3) Use 30m or 4h on BTC or US stocks.
// 4) Adjust pivot length for sensitivity (smaller = more signals, more noise).
//
// Usage guide (30m/4h):
// - Bullish regular DIV at swing lows: price making lower lows but oscillator
//   making higher lows. Potential reversal up.
// - Bearish regular DIV at swing highs: price making higher highs but oscillator
//   making lower highs. Potential reversal down.
// - Hidden divergences confirm continuation within existing trends.
// - DIV+ label means both RSI and W%R diverge together (high conviction).
// - Combine with Confluence Core, Fusion Scalp, or liquidity sweeps for entries.



//@version=6
indicator("Capital41 Divergence Detector v2", overlay = true, max_labels_count = 200, max_lines_count = 200)

// Inputs
pivotLen    = input.int(5, "Pivot length", minval = 2, maxval = 20)
rsiLen      = input.int(14, "RSI length", minval = 2)
wrLen       = input.int(14, "Williams %R length", minval = 2)
maxBars     = input.int(100, "Max bars between pivots", minval = 10, maxval = 500)

showRegular = input.bool(true, "Show regular divergences")
showHidden  = input.bool(true, "Show hidden divergences")
useRSI      = input.bool(true, "Use RSI for divergences")
useWR       = input.bool(true, "Use Williams %R for divergences")
showLines   = input.bool(true, "Draw divergence lines")
showBadge   = input.bool(true, "Show status badge")

colorBull   = color.new(color.lime, 0)
colorBear   = color.new(color.red, 0)
colorHBull  = color.new(color.teal, 0)
colorHBear  = color.new(color.orange, 0)
colorNeutral = color.new(color.gray, 80)


// Oscillators
rsi = ta.rsi(close, rsiLen)

wr_manual(_high, _low, _close, _len) =>
    hh = ta.highest(_high, _len)
    ll = ta.lowest(_low, _len)
    rng = hh - ll
    rng == 0 ? -50.0 : (hh - _close) / rng * -100

wr = wr_manual(high, low, close, wrLen)

// Pivot detection (inherently non-repainting: confirmed pivotLen bars each side)
ph = ta.pivothigh(high, pivotLen, pivotLen)
pl = ta.pivotlow(low, pivotLen, pivotLen)

// Track last two swing highs with oscillator values at the pivot bar
var float prevHigh = na,    var float lastHigh = na
var float prevHighRSI = na, var float lastHighRSI = na
var float prevHighWR = na,  var float lastHighWR = na
var int   prevHighBar = na, var int   lastHighBar = na

// Track last two swing lows with oscillator values at the pivot bar
var float prevLow = na,     var float lastLow = na
var float prevLowRSI = na,  var float lastLowRSI = na
var float prevLowWR = na,   var float lastLowWR = na
var int   prevLowBar = na,  var int   lastLowBar = na

if not na(ph)
    prevHigh    := lastHigh
    prevHighRSI := lastHighRSI
    prevHighWR  := lastHighWR
    prevHighBar := lastHighBar
    lastHigh    := ph
    lastHighRSI := rsi[pivotLen]
    lastHighWR  := wr[pivotLen]
    lastHighBar := bar_index - pivotLen

if not na(pl)
    prevLow    := lastLow
    prevLowRSI := lastLowRSI
    prevLowWR  := lastLowWR
    prevLowBar := lastLowBar
    lastLow    := pl
    lastLowRSI := rsi[pivotLen]
    lastLowWR  := wr[pivotLen]
    lastLowBar := bar_index - pivotLen


// Spacing check: pivots must be within maxBars of each other

highOk = not na(prevHighBar) and not na(lastHighBar) and (lastHighBar - prevHighBar) <= maxBars and (lastHighBar - prevHighBar) > 0
lowOk  = not na(prevLowBar) and not na(lastLowBar) and (lastLowBar - prevLowBar) <= maxBars and (lastLowBar - prevLowBar) > 0


// Regular divergences
// Bearish regular: price Higher High, oscillator Lower High (reversal down)

bearRegRSI = showRegular and useRSI and not na(ph) and highOk and lastHigh > prevHigh and lastHighRSI < prevHighRSI
bearRegWR  = showRegular and useWR  and not na(ph) and highOk and lastHigh > prevHigh and lastHighWR < prevHighWR


// Bullish regular: price Lower Low, oscillator Higher Low (reversal up)
bullRegRSI = showRegular and useRSI and not na(pl) and lowOk and lastLow < prevLow and lastLowRSI > prevLowRSI
bullRegWR  = showRegular and useWR  and not na(pl) and lowOk and lastLow < prevLow and lastLowWR > prevLowWR


// Hidden divergences
// Bearish hidden: price Lower High, oscillator Higher High (continuation down)

bearHidRSI = showHidden and useRSI and not na(ph) and highOk and lastHigh < prevHigh and lastHighRSI > prevHighRSI
bearHidWR  = showHidden and useWR  and not na(ph) and highOk and lastHigh < prevHigh and lastHighWR > prevHighWR

// Bullish hidden: price Higher Low, oscillator Lower Low (continuation up)
bullHidRSI = showHidden and useRSI and not na(pl) and lowOk and lastLow > prevLow and lastLowRSI < prevLowRSI
bullHidWR  = showHidden and useWR  and not na(pl) and lowOk and lastLow > prevLow and lastLowWR < prevLowWR


// Combined signals
bullReg = bullRegRSI or bullRegWR
bearReg = bearRegRSI or bearRegWR
bullHid = bullHidRSI or bullHidWR
bearHid = bearHidRSI or bearHidWR


// Double divergence (both oscillators agree = high conviction)
bullDouble = bullRegRSI and bullRegWR
bearDouble = bearRegRSI and bearRegWR

// Draw divergence lines on price

if showLines and bullReg
    line.new(prevLowBar, prevLow, lastLowBar, lastLow,
             color = colorBull, width = 2, style = line.style_solid)

if showLines and bearReg
    line.new(prevHighBar, prevHigh, lastHighBar, lastHigh,
             color = colorBear, width = 2, style = line.style_solid)

if showLines and bullHid and not bullReg
    line.new(prevLowBar, prevLow, lastLowBar, lastLow,
             color = colorHBull, width = 2, style = line.style_dashed)

if showLines and bearHid and not bearReg
    line.new(prevHighBar, prevHigh, lastHighBar, lastHigh,
             color = colorHBear, width = 2, style = line.style_dashed)

// Signal markers
// Double divergence (high conviction): larger marker with DIV+
plotshape(bullDouble, title = "Bull Double DIV", style = shape.triangleup,
          location = location.belowbar, color = colorBull, size = size.small, text = "DIV+")

plotshape(bearDouble, title = "Bear Double DIV", style = shape.triangledown,
          location = location.abovebar, color = colorBear, size = size.small, text = "DIV+")

// Single regular divergence (one oscillator only)
plotshape(bullReg and not bullDouble, title = "Bull Regular DIV", style = shape.triangleup,
          location = location.belowbar, color = colorBull, size = size.tiny, text = "DIV")

plotshape(bearReg and not bearDouble, title = "Bear Regular DIV", style = shape.triangledown,
          location = location.abovebar, color = colorBear, size = size.tiny, text = "DIV")

// Hidden divergences (only when no regular div on same bar)
plotshape(bullHid and not bullReg, title = "Bull Hidden DIV", style = shape.triangleup,
          location = location.belowbar, color = colorHBull, size = size.tiny, text = "hDIV")

plotshape(bearHid and not bearReg, title = "Bear Hidden DIV", style = shape.triangledown,
          location = location.abovebar, color = colorHBear, size = size.tiny, text = "hDIV")


// Status badge
var string lastDivDir  = "---"
var string lastDivType = "---"
var string lastDivOsc  = "---"

if bullDouble
    lastDivDir := "BULL", lastDivType := "REG", lastDivOsc := "RSI+WR"
else if bearDouble
    lastDivDir := "BEAR", lastDivType := "REG", lastDivOsc := "RSI+WR"
else if bullReg
    lastDivDir := "BULL", lastDivType := "REG", lastDivOsc := bullRegRSI ? "RSI" : "WR"
else if bearReg
    lastDivDir := "BEAR", lastDivType := "REG", lastDivOsc := bearRegRSI ? "RSI" : "WR"
else if bullHid
    lastDivDir := "BULL", lastDivType := "HID", lastDivOsc := bullHidRSI ? "RSI" : "WR"
else if bearHid
    lastDivDir := "BEAR", lastDivType := "HID", lastDivOsc := bearHidRSI ? "RSI" : "WR"

var table status = table.new(position.bottom_right, 3, 1, border_width = 1)
if barstate.islast
    if showBadge
        dirBg = lastDivDir == "BULL" ? color.new(colorBull, 70) : lastDivDir == "BEAR" ? color.new(colorBear, 70) : colorNeutral
        typeBg = lastDivType == "REG" ? color.new(color.blue, 70) : lastDivType == "HID" ? color.new(color.purple, 70) : colorNeutral
        oscBg = lastDivOsc == "RSI+WR" ? color.new(color.orange, 65) : colorNeutral

        table.cell(status, 0, 0, " " + lastDivDir + " ",  bgcolor = dirBg,  text_color = color.white, text_size = size.tiny)
        table.cell(status, 1, 0, " " + lastDivType + " ", bgcolor = typeBg, text_color = color.white, text_size = size.tiny)
        table.cell(status, 2, 0, " " + lastDivOsc + " ",  bgcolor = oscBg,  text_color = color.white, text_size = size.tiny)
    else
        for i = 0 to 2
            table.cell(status, i, 0, "", bgcolor = color.new(color.black, 100), text_color = color.new(color.black, 100))


// Alerts
alertcondition(bullDouble, title = "Bull Double Divergence",
               message = "Divergence: bullish RSI + W%R double divergence on {{ticker}} ({{interval}})")

alertcondition(bearDouble, title = "Bear Double Divergence",
               message = "Divergence: bearish RSI + W%R double divergence on {{ticker}} ({{interval}})")

alertcondition(bullReg, title = "Bull Regular Divergence",
               message = "Divergence: bullish regular divergence on {{ticker}} ({{interval}})")

alertcondition(bearReg, title = "Bear Regular Divergence",
               message = "Divergence: bearish regular divergence on {{ticker}} ({{interval}})")

alertcondition(bullHid and not bullReg, title = "Bull Hidden Divergence",
               message = "Divergence: bullish hidden divergence on {{ticker}} ({{interval}})")

alertcondition(bearHid and not bearReg, title = "Bear Hidden Divergence",
               message = "Divergence: bearish hidden divergence on {{ticker}} ({{interval}})")