RSI DIVERGENCE – INDICATOR

Concept:

It checks for the lowest low while the RSI is oversold and stores it when the market leaves the oversold condition.If there’s a second low that is lower than the first low, with a higher RSI value, and within a maximum distance, it checks for a crossover of the highest price between the two lows and the EMA.If the conditions for bullish divergence are met, it sets the bullishDivergence flag to true and draws a line indicating the divergence.

Our Requirements as Images

What I Try to Create

// @version=5


indicator("Live RSI Divergence with SMA Condition", overlay=true)





// Get user input


int i_MaxDistance       = input.int(title="Max Bar Distance", defval=100)


int i_RSI_Length        = input.int(title="RSI Length", defval=13, minval=1)


float i_RSI_Overbought  = input.float(title="RSI Overbought", defval=70.0)


float i_RSI_Oversold    = input.float(title="RSI Oversold", defval=30.0)


int emaLength           = input.int(title="EMA Length", defval=50, minval=1)





// Get RSI value


rsiValue = ta.rsi(close, i_RSI_Length)


emavalue = ta.ema(close, emaLength)







// --------- BULLISH DIVERGENCE --------- //


var float checkFirstLow     = na


var float initialLowPrice   = na


var float initialLowRSI     = na


var int initialLowIndex     = na


bool bullishDivergence      = false


float swingLowRSI           = ta.lowest(rsiValue, 5)





// Save lowest low while RSI is oversold, and store it when market leaves OS condition


if (rsiValue < i_RSI_Oversold or rsiValue[1] < i_RSI_Oversold)


    if not na(initialLowPrice)


        initialLowPrice := na


    if na(checkFirstLow) or low < checkFirstLow


        checkFirstLow := low


        initialLowIndex := bar_index


        initialLowRSI := swingLowRSI


else


    // RSI is no longer OS, save lowest price during OS condition and reset temporary low


    if not na(checkFirstLow)


        initialLowPrice := checkFirstLow


    checkFirstLow := na








// Check for a second low that is lower than the first, and with a higher RSI value, and within our max distance


if low < initialLowPrice and swingLowRSI > initialLowRSI and bar_index - initialLowIndex <= i_MaxDistance


    float highestPriceBetween =  ta.highest(high, bar_index - initialLowIndex)


    if ta.crossover(highestPriceBetween,emavalue)


        bullishDivergence := true


        line.new(initialLowIndex, initialLowPrice, bar_index, low, color=color.yellow, width=2)


        initialLowPrice := na


plot(emavalue,linewidth = 2)```

**Compiler Warning**


Warning at 41:34 The function 'ta.highest' should be called on each calculation for consistency. It is recommended to extract the call from this scope



Warning at 42:8 The function 'ta.crossover' should be called on each calculation for consistency. It is recommended to extract the call from this sco
pe.


**Result on Chart**

[Result](https://i.sstatic.net/ykzHJIJ0.png)





Candel High Crossover EMA Within a Range But it's Not Respect the condition & unexpected results.