scarf

PPO Divergence Alerts

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This is a pretty straightforward script that adds alerts to Pekipek's excellent PPO Divergence indicator and changes the visuals a bit. You can have the alerts fire on these events:

Purple Circle ( bullish signal)
Orange Circle ( bearish signal)
Green Dot             (High Point)
Red Dot (Low Point)

I use this on daily Forex charts to get alerts when purple or orange dots show. As you can see, it catches a lot of big moves, some of which can give insane returns if you're 200x leveraged on the likes of 1Broker.com. In regards to reducing false signals, I'm getting good results with a Williams %R but would love to hear any suggestions.

Edit: Oops. Box #6 in the example should be yellow, not purple.
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//@version=2
//Credit to https://www.tradingview.com/script/p3oqCa56-Pekipek-s-PPO-Divergence-BETA/ (I just changed the visuals and added alerts)
study("PPO Divergence Alerts", overlay=false)

source = open
long_term_div = input(true, title="Use long term Divergences?")
div_lookback_period = input(55, minval=1, title="Lookback Period")
fastLength = input(12, minval=1), slowLength=input(26,minval=1)
signalLength=input(9,minval=1)
smoother = input(2,minval=1)
fastMA = ema(source, fastLength)
slowMA = ema(source, slowLength)
macd = fastMA - slowMA
macd2=(macd/slowMA)*100
d = sma(macd2, smoother) // smoothing PPO
 
bullishPrice = low 

priceMins = bullishPrice > bullishPrice[1] and bullishPrice[1] < bullishPrice[2] or low[1] == low[2] and low[1] < low and low[1] < low[3] or low[1] == low[2] and low[1] == low[3] and low[1] < low and low[1] < low[4] or low[1] == low[2] and low[1] == low[3] and low[1] and low[1] == low[4] and low[1] < low and low[1] < low[5] // this line identifies bottoms and plateaus in the price
oscMins= d > d[1] and d[1] < d[2] // this line identifies bottoms in the PPO

BottomPointsInPPO = oscMins

bearishPrice = high
priceMax = bearishPrice < bearishPrice[1] and bearishPrice[1] > bearishPrice[2] or high[1] == high[2] and high[1] > high and high[1] > high[3] or high[1] == high[2] and high[1] == high[3] and high[1] > high and high[1] > high[4] or high[1] == high[2] and high[1] == high[3] and high[1] and high[1] == high[4] and high[1] > high and high[1] > high[5]  // this line identifies tops in the price
oscMax = d < d[1] and d[1] > d[2]   // this line identifies tops in the PPO

TopPointsInPPO = oscMax

currenttrough4=valuewhen (oscMins, d[1], 0) // identifies the value of PPO at the most recent BOTTOM in the PPO
lasttrough4=valuewhen (oscMins, d[1], 1) // NOT USED identifies the value of PPO at the second most recent BOTTOM in the PPO
currenttrough5=valuewhen (oscMax, d[1], 0) // identifies the value of PPO at the most recent TOP in the PPO
lasttrough5=valuewhen (oscMax, d[1], 1) // NOT USED identifies the value of PPO at the second most recent TOP in the PPO

currenttrough6=valuewhen (priceMins, low[1], 0) // this line identifies the low (price) at the most recent bottom in the Price
lasttrough6=valuewhen (priceMins, low[1], 1) // NOT USED this line identifies the low (price) at the second most recent bottom in the Price
currenttrough7=valuewhen (priceMax, high[1], 0) // this line identifies the high (price) at the most recent top in the Price
lasttrough7=valuewhen (priceMax, high[1], 1) // NOT USED this line identifies the high (price) at the second most recent top in the Price

delayedlow = priceMins and barssince(oscMins) < 3 ? low[1] : na
delayedhigh = priceMax and barssince(oscMax) < 3 ? high[1] : na

// only take tops/bottoms in price when tops/bottoms are less than 5 bars away
filter = barssince(priceMins) < 5 ? lowest(currenttrough6, 4) : na
filter2 = barssince(priceMax) < 5 ? highest(currenttrough7, 4) : na

//delayedbottom/top when oscillator bottom/top is earlier than price bottom/top
y11 = valuewhen(oscMins, delayedlow, 0)
y12 = valuewhen(oscMax, delayedhigh, 0)

// only take tops/bottoms in price when tops/bottoms are less than 5 bars away, since 2nd most recent top/bottom in osc
y2=valuewhen(oscMax, filter2, 1) // identifies the highest high in the tops of price with 5 bar lookback period SINCE the SECOND most recent top in PPO
y6=valuewhen(oscMins, filter, 1) // identifies the lowest low in the bottoms of price with 5 bar lookback period SINCE the SECOND most recent bottom in PPO

long_term_bull_filt = valuewhen(priceMins, lowest(div_lookback_period), 1)
long_term_bear_filt = valuewhen(priceMax, highest(div_lookback_period), 1)

y3=valuewhen(oscMax, currenttrough5, 0) // identifies the value of PPO in the most recent top of PPO 
y4=valuewhen(oscMax, currenttrough5, 1) // identifies the value of PPO in the second most recent top of PPO 

y7=valuewhen(oscMins, currenttrough4, 0) // identifies the value of PPO in the most recent bottom of PPO
y8=valuewhen(oscMins, currenttrough4, 1) // identifies the value of PPO in the SECOND most recent bottom of PPO

y9=valuewhen(oscMins, currenttrough6, 0)
y10=valuewhen(oscMax, currenttrough7, 0)

bulldiv= BottomPointsInPPO ? d[1] : na // plots dots at bottoms in the PPO
beardiv= TopPointsInPPO ? d[1]: na // plots dots at tops in the PPO

i = currenttrough5 < highest(d, div_lookback_period) // long term bearish oscilator divergence
i2 = y10 > long_term_bear_filt // long term bearish top divergence
i3 = delayedhigh > long_term_bear_filt // long term bearish delayedhigh divergence

i4 = currenttrough4 > lowest(d, div_lookback_period) // long term bullish osc divergence
i5 = y9 < long_term_bull_filt // long term bullish bottom div
i6 = delayedlow < long_term_bull_filt // long term bullish delayedbottom div


plot(0, color=gray)
plot(d, color=black)
plot(bulldiv, title = "Bottoms", color=maroon, style=circles, linewidth=3, offset= -1)
plot(beardiv, title = "Tops", color=green, style=circles, linewidth=3, offset= -1)

bearishdiv1 = (y10 > y2 and oscMax and y3 < y4) ? true : false
bearishdiv2 = (delayedhigh > y2 and y3 < y4) ? true : false
bearishdiv3 = (long_term_div and oscMax and i and i2) ? true : false
bearishdiv4 = (long_term_div and i and i3) ? true : false

bullishdiv1 = (y9 < y6 and oscMins and y7 > y8) ? true : false
bullishdiv2 = (delayedlow < y6 and y7 > y8) ? true : false
bullishdiv3 = (long_term_div and oscMins and i4 and i5) ? true : false
bullishdiv4 = (long_term_div and i4 and i6) ? true : false

bearish = bearishdiv1 or bearishdiv2 or bearishdiv3 or bearishdiv4
bullish = bullishdiv1 or bullishdiv2 or bullishdiv3 or bullishdiv4
 
greendot = beardiv != 0 ? true : false
reddot = bulldiv != 0 ? true : false

alertcondition( bearish, title="Bearish Signal (Orange Circle)", message="Orange & Bearish: Short " ) 
alertcondition( bullish, title="Bullish Signal (Purple Circle)", message="Purple & Bullish: Long " )
alertcondition( greendot, title="PPO High (Green Dot)", message="Green High Point: Short " ) 
alertcondition( reddot, title="PPO Low (Red Dot)", message="Red Low Point: Long " )

plot(y10>y2 and oscMax and y3 < y4 ? d :na, title = "Bearish Divergence1", color=orange, style= circles, linewidth=6)
plot(y9<y6 and oscMins and y7 > y8 ? d :na, title = "Bullish Divergence1", color=purple, style=circles, linewidth=6)
plot(delayedhigh>y2 and y3 < y4 ? d :na, title = "Bearish Divergence2", color=orange, style= circles, linewidth=6)
plot(delayedlow<y6 and y7 > y8 ? d :na, title = "Bullish Divergence2", color=purple, style=circles, linewidth=6)

plot(long_term_div and oscMax and i and i2 ? d :na, title = "Bearish Divergence3", color=orange, style= circles, linewidth=6)
plot(long_term_div and oscMins and i4 and i5 ? d : na, title = "Bullish Divergence3", color=purple, style=circles, linewidth=6)
plot(long_term_div and i and i3 ? d :na, title = "Bearish Divergence4", color=orange, style= circles, linewidth=6)
plot(long_term_div and i4 and i6 ? d : na, title = "Bullish Divergence4", color=purple, style=circles, linewidth=6)
olmodelcaz
3 months ago
Thanks!!!!
Reply
stockspy PRO
2 months ago
This is great. I use it ontop of Murrey's Math Oscillator as well as CMW's Vix Fix.
Reply
scarf PRO stockspy
24 days ago
@stockspy, Hi. I'm only seeing this now, but am very interested. Can you explain how you use all three together?
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Wow, one of those moments where you think the poster of this page is not online anymore, then see's the poster(Scarf) comment inside this month. Anyway, thanks a bunch for adjusting the indicator with an alert.

Have you try to adjust for intraday trading yet?
Reply
scarf PRO Pippylongstockings
20 hours ago
@Pippylongstockings, I find that divergences are only really accurate at higher timeframes, like 12h or more. If you find otherwise, do let me know!
Reply
Pippylongstockings PRO scarf
12 hours ago
@scarf, Ok, thanks. Try the hourly also. Heck, you can try it today. When you see thatearly seesion rush to a particular side, watch the divergence on the indicator(which ever one) it really saves a lot of headache when seeing a false move, being exposed for what it really is!

Hope it helps.
Reply
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