RSI Divergence Risk Target Signals
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RSI Divergence Risk Target Signals
RSI Divergence Risk Target Signals is a MetaTrader 5 indicator that detects confirmed bullish and bearish RSI divergence and combines the signals with optional trend filters, ATR-based Stop Loss levels, three Take Profit targets, alerts and an internal trade statistics dashboard.
The indicator compares confirmed RSI pivot structure with corresponding price highs and lows. It is designed to help traders identify momentum divergence while providing a structured way to evaluate entries, risk and potential target levels directly from the chart.
The product is an indicator only. It does not automatically open, modify or close trading positions.
How It Works
The core calculation uses RSI with a fixed period of 14.
The indicator identifies confirmed RSI pivot highs and pivot lows using the Pivot Lookback and Confirmation Bars parameters.
A previous divergence pivot must be between 5 and 60 bars from the current confirmed pivot.
Regular Bullish Divergence
A regular bullish divergence is detected when:
- A confirmed RSI pivot low is available.
- The current RSI pivot low is higher than the previous RSI pivot low.
- The corresponding current price Low is lower than the previous pivot Low.
- The distance between the two confirmed pivots is within the internal 5 to 60 bar range.
This represents price making a lower low while RSI forms a higher low.
Regular Bearish Divergence
A regular bearish divergence is detected when:
- A confirmed RSI pivot high is available.
- The current RSI pivot high is lower than the previous RSI pivot high.
- The corresponding current price High is higher than the previous pivot High.
- The distance between the two confirmed pivots is within the internal 5 to 60 bar range.
This represents price making a higher high while RSI forms a lower high.
The indicator displays the detected divergence in the RSI window and also draws the corresponding divergence structure on the main price chart.
Trend Filters
The trend filter affects tracked BUY and SELL entries. Divergence detection itself remains visible independently of the selected trade filter.
Four modes are available:
Off
All confirmed divergence setups are eligible for the trade-entry engine.
EMA Trend
Bullish entries require price to be above EMA 200.
Bearish entries require price to be below EMA 200.
Supertrend
Uses an internal Supertrend calculation with ATR period 10 and factor 3.0.
Bullish and bearish entries are accepted according to the active Supertrend direction.
HTF Trend
Uses the current trading symbol on the selected higher timeframe.
The higher-timeframe Close is compared with its EMA 200.
The default higher timeframe is H4.
BUY Signal
A BUY entry can be generated when:
- A confirmed regular bullish RSI divergence is detected.
- No simultaneous bearish divergence is active.
- The selected bullish trend-filter condition is satisfied.
- No tracked trade is currently active.
- Valid ATR data is available.
The trade Entry is the Close of the confirmation candle.
SELL Signal
A SELL entry can be generated when:
- A confirmed regular bearish RSI divergence is detected.
- No simultaneous bullish divergence is active.
- The selected bearish trend-filter condition is satisfied.
- No tracked trade is currently active.
- Valid ATR data is available.
The trade Entry is the Close of the confirmation candle.
ATR Risk and Target Levels
Risk distance is calculated from:
ATR x ATR Multiplier
The default settings are:
ATR Period: 14
ATR Multiplier: 2.0
Final TP3 Target: 6R
For a BUY entry:
Stop Loss = Entry - Risk Distance
TP1 = Entry + one-third of the configured TP3 distance
TP2 = Entry + two-thirds of the configured TP3 distance
TP3 = Entry + the complete configured reward distance
With the default 6R final target:
TP1 = 2R
TP2 = 4R
TP3 = 6R
For a SELL entry, the same distances are calculated below the Entry price.
TP1 and TP2 are intermediate visual reference targets.
Only TP3 is treated as a completed winning trade by the internal statistics engine.
Trade Tracking Rules
Only one trade is tracked at a time.
TP3 and Stop Loss checks begin on the candle after the entry candle.
A new tracked entry is not opened on the same candle that another tracked trade closes.
If both TP3 and Stop Loss are reached within the same candle, the indicator applies a conservative rule and records the Stop Loss first.
A TP3 result contributes the configured TP3 reward value to the internal R statistics.
A Stop Loss contributes -1R.
Main Features
- Automatic regular bullish RSI divergence detection
- Automatic regular bearish RSI divergence detection
- Confirmed pivot-based signal logic
- RSI displayed in a separate indicator window
- Divergence visualization on RSI and price charts
- EMA 200 trend filter
- Supertrend filter
- Higher-timeframe EMA trend filter
- ATR-based Stop Loss calculation
- TP1, TP2 and TP3 reference targets
- Active and historical risk/reward visualization
- Entry and target price labels
- TP3 and Stop Loss result labels
- Internal trade statistics dashboard
- Popup, push notification and email alert options
- Dark, Light and Mobile display themes
Practical Starting Settings
The default configuration provides a practical starting point for testing:
RSI Period: 14
Pivot Lookback: 47
Confirmation Bars: 1
ATR Period: 14
ATR Multiplier: 2.0
TP3 Target: 6R
Trend Filter: Off
HTF Trend Timeframe: H4
These settings are not guaranteed to be optimal for every market or timeframe.
Input Parameters
Theme
Theme Mode
Select Dark, Light or Mobile display mode.
Chart Signal Label Size
Controls the size of the main BUY and SELL signal labels.
Signal Settings
Pivot Lookback
Controls the left-side lookback used to identify significant RSI pivot highs and lows.
Confirmation Bars
Controls how many bars are required on the right side of a pivot before it becomes confirmed.
Trade Management
ATR Period
Controls the ATR calculation used for trade risk levels.
ATR Multiplier
Controls the distance between Entry and Stop Loss.
TP3 Target
Sets the final reward target from 1R to 7R.
TP1 and TP2 are calculated automatically at one-third and two-thirds of the selected final target.
Trend Filter
Select between:
Off
EMA Trend
Supertrend
HTF Trend
HTF Trend Timeframe
Selects the higher timeframe used when HTF Trend mode is enabled.
Alert Settings
Popup Alerts
Enables MetaTrader terminal popup alerts.
Push Alerts
Enables MetaTrader push notifications when push notifications are configured in the terminal.
Email Alerts
Enables email notifications when email settings are configured in MetaTrader.
Alerts
The indicator can generate notifications for:
- Confirmed regular bullish divergence
- Confirmed regular bearish divergence
- BUY entry
- SELL entry
- TP3 reached
- Stop Loss reached
BUY and SELL entry alerts can include the symbol, timeframe, Entry price, TP1, TP2, TP3, Stop Loss, final R target and selected trend-filter mode.
Statistics Dashboard
The internal dashboard can display:
- Current trade status
- Closed Trades
- TP3 Wins
- Losses
- Win Rate
- NET R
- Gross Profit R
- Gross Loss R
- Average R per trade
- Profit Factor
The Mobile theme provides a compact dashboard displaying Win Rate and NET R.
These statistics are generated only from the indicator's internal signal and TP3/Stop Loss tracking model.
They are not broker account results, verified trading results or a guarantee of future performance.
Trading Use
The indicator is designed primarily for RSI divergence and reversal analysis.
A possible workflow is:
1. Identify a confirmed bullish or bearish RSI divergence.
2. Use an optional trend filter when additional directional confirmation is required.
3. Review the generated Entry, Stop Loss and TP reference levels.
4. Evaluate the setup together with the user's own market context and risk-management rules.
5. Monitor TP3 or Stop Loss progression through the chart and alerts.
The indicator can be tested on different MetaTrader 5 timeframes. Results can vary significantly with timeframe, volatility and market structure.
Supported Symbols
The indicator contains no hard-coded trading symbol.
It operates on the symbol of the MetaTrader 5 chart where it is attached.
This avoids dependency on specific broker symbol names. Behavior can still vary between instruments and broker price histories.
Signal and Current Candle Information
Divergence entry signals are based on confirmed pivots and are committed after the confirmation candle closes.
Because pivot confirmation requires future bars relative to the original RSI pivot, the divergence marker is displayed at the detected pivot while confirmation occurs later.
The currently forming candle can still change the live RSI value, trend-filter reference and active TP or Stop Loss interaction before that candle closes.
For this reason, the product is not described as universally non-repainting in every displayed live value.
Risk Management
The Entry, Stop Loss and Take Profit levels are analytical reference levels generated by the indicator.
A divergence signal does not guarantee a reversal or that any target will be reached.
Users should apply appropriate position sizing, Stop Loss discipline and their own risk-management process when using the indicator.
Disclaimer
RSI Divergence Risk Target Signals is a technical analysis indicator for MetaTrader 5.
It does not guarantee future trading results. Trading financial markets involves risk, and all trading decisions remain the responsibility of the user.
