[RS]MACD Divergence V0 — Indicator by RicardoSantos

EXPERIMENTAL:
MACD Divergence detection.
looks like macd is more prone for missing the extremes in price then the rsi due to lag.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

study(title='[RS]MACD Divergence V0')
src = input(close)
fast = input(12)
slow = input(26)
smooth = input(9)

f_top_fractal(_src)=>_src[4] < _src[2] and _src[3] < _src[2] and _src[2] > _src[1] and _src[2] > _src[0]
f_bot_fractal(_src)=>_src[4] > _src[2] and _src[3] > _src[2] and _src[2] < _src[1] and _src[2] < _src[0]
f_fractalize(_src)=>f_top_fractal(_src) ? 1 : f_bot_fractal(_src) ? -1 : 0

fast_ma = sma(src, fast)
slow_ma = sma(src, slow)
macd = fast_ma-slow_ma
signal = ema(macd, smooth)
hist = macd - signal

fractal_top = f_fractalize(hist) > 0 ? hist[2] : na
fractal_bot = f_fractalize(hist) < 0 ? hist[2] : na

high_prev = valuewhen(fractal_top, hist[2], 1) 
high_price = valuewhen(fractal_top, high[2], 1)
low_prev = valuewhen(fractal_bot, hist[2], 1) 
low_price = valuewhen(fractal_bot, low[2], 1)

regular_bearish_div = fractal_top and high[2] > high_price and hist[2] < high_prev
hidden_bearish_div = fractal_top and high[2] < high_price and hist[2] > high_prev
regular_bullish_div = fractal_bot and low[2] < low_price and hist[2] > low_prev
hidden_bullish_div = fractal_bot and low[2] > low_price and hist[2] < low_prev

plot(title='MACD', series=macd, color=gray)
plot(title='SIGNAL', series=signal, color=silver)
plot(title='HIST', series=hist, color=black)
plot(title='H F', series=fractal_top, color=black, offset=-2)
plot(title='L F', series=fractal_bot, color=black, offset=-2)
plot(title='H D', series=fractal_top, style=circles, color=regular_bearish_div or hidden_bearish_div ? maroon : gray, linewidth=3, offset=-2)
plot(title='L D', series=fractal_bot, style=circles, color=regular_bullish_div or hidden_bullish_div ? green : gray, linewidth=3, offset=-2)

plotshape(title='+RBD', series=regular_bearish_div ? hist[2] : na, text='Regular', style=shape.labeldown, location=location.absolute, color=maroon, textcolor=white, offset=-2)
plotshape(title='+HBD', series=hidden_bearish_div ? hist[2] : na, text='hidden', style=shape.labeldown, location=location.absolute, color=maroon, textcolor=white, offset=-2)
plotshape(title='-RBD', series=regular_bullish_div ? hist[2] : na, text='Regular', style=shape.labelup, location=location.absolute, color=green, textcolor=white, offset=-2)
plotshape(title='-HBD', series=hidden_bullish_div ? hist[2] : na, text='hidden', style=shape.labelup, location=location.absolute, color=green, textcolor=white, offset=-2)