DarkPool's RSi

DarkPool's RSi is an enhanced momentum oscillator designed to automatically detect structural discrepancies between price action and the Relative Strength Index. While retaining the standard RSI visualization, this script overlays advanced divergence recognition logic to identify potential trend reversals.

The tool identifies pivot points in real-time and compares recent peaks and valleys against historical data. When the momentum of the RSI contradicts the direction of price action, the indicator highlights these events using dynamic trendlines, shape markers, and background coloring. A built-in dashboard table provides an immediate status check of active divergence signals.

Key Features

Automated Divergence Detection: Automatically spots both Regular Bullish and Regular Bearish divergences based on pivot lookback settings.

Dynamic Visuals: Draws physical lines connecting RSI peaks or troughs to visualize the divergence angle, alongside triangle markers indicating the signal direction.

Active Status Dashboard: A data table located on the chart monitors the current state of the market, flagging signals as "Active" when detected.

Standard RSI Overlay: Includes standard Overbought (70) and Oversold (30) reference lines for traditional momentum trading.

How to Use

1. Reading the Standard RSI The black line represents the Relative Strength Index.

Overbought (Above 70): Suggests the asset may be overvalued and due for a pullback.

Oversold (Below 30): Suggests the asset may be undervalued and due for a bounce.

Midline (50): Acts as a trend filter; values above 50 indicate bullish momentum, while values below 50 indicate bearish momentum.

2. Trading Divergences The primary function of this tool is to identify reversal setups.

Bullish Divergence (Green Triangle/Line): Occurs when Price makes a Lower Low, but the RSI makes a Higher Low. This indicates that selling momentum is exhausting and a price increase may follow.

Bearish Divergence (Red Triangle/Line): Occurs when Price makes a Higher High, but the RSI makes a Lower High. This indicates that buying momentum is fading and a price decrease may follow.

3. Visual Aids

Lines: The script draws solid lines directly on the RSI pane connecting the relevant pivot points to confirm the divergence slope.

Background Color: When a divergence is detected, the background of the indicator pane will highlight briefly (Green for Bullish, Red for Bearish) to draw attention to the new signal.

4. The Dashboard A small table in the bottom right corner tracks the status of the signals.

Status: ACTIVE: A divergence has been detected within the last 10 bars.

Status: None: No recent divergence patterns have been identified.

Disclaimer This indicator is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a guarantee of future results. Trading cryptocurrencies and financial markets involves a high level of risk. Always perform your own due diligence before making any trading decisions.