Lookahead Safe RSI Divergence
- Indicators
- Version: 1.0
- Activations: 5
Lookahead Safe RSI Divergence Detector
Most RSI divergence indicators mark a pivot the moment it looks like a swing high or low, so the last signal on the chart can silently shift or disappear as new bars form. This indicator only confirms a pivot after the number of bars set in Pivot Confirm Lag have genuinely closed, so a confirmed signal never repaints or moves.
What it detects
Bearish divergence: price forms a Higher High while RSI forms a Lower High.
Bullish divergence: price forms a Lower Low while RSI forms a Higher Low.
Optional chained divergence: once the first leg is confirmed against the overbought or oversold zone, up to two more legs can follow without requiring that zone again, as long as RSI keeps making a strictly worse extreme on each leg.
Settings
RSI period and pivot detection (left bars, confirm lag, price/RSI matching tolerance) are adjustable. An optional filter requires the origin pivot to sit in the overbought or oversold zone (recommended, enabled by default). Optional cooldown between signals and a round trip through neutral RSI before the next signal are also available.
Intended use
This indicator was developed as part of research into a private multi asset trading strategy. Using divergence alone to decide when to open a new position did not produce a reliable edge in that research. Using divergence as confirmation to close an already open position, taken on other grounds, did show a measurable and repeatable contribution. This indicator is intended for that second use case: a disciplined, non-repainting confirmation signal for exits, not a standalone entry system.
