Volume-Price Divergence RSI

Understanding the Display
Once added, you'll see a new panel below your price chart with:

Purple Line: This is the RSI (Relative Strength Index)
Red Dashed Line: The overbought threshold (default: 70)
Green Dashed Line: The oversold threshold (default: 30)
Blue Columns: Volume histogram
Dark Blue Line: Volume moving average

Trading Signals
Look for these markers on the indicator panel:

Green Triangle (↑): Buy signal - appears when there's a bullish divergence AND RSI conditions are met (oversold and rising)
Red Triangle (↓): Sell signal - appears when there's a bearish divergence AND RSI conditions are met (overbought and falling)
Lime Diamond (◆): Bullish divergence without RSI confirmation
Orange Diamond (◆): Bearish divergence without RSI confirmation

What These Signals Mean

Buy Signal (Green Triangle):

Price is making lower lows BUT volume is making higher lows
RSI is in oversold territory (below 30) and starting to rise
This suggests potential upward reversal


Sell Signal (Red Triangle):

Price is making higher highs BUT volume is making lower highs
RSI is in overbought territory (above 70) and starting to fall
This suggests potential downward reversal



Customizing the Indicator
To adjust settings:

Right-click on the indicator
Select "Settings"
In the "Inputs" tab, you can modify:

RSI Period (default: 14)
Volume MA Period (default: 20)
Lookback Period for finding pivot points (default: 10)
RSI Overbought level (default: 70)
RSI Oversold level (default: 30)



Setting Alerts
To get notified when a signal appears:

Right-click on the indicator
Select "Add Alert"
Choose the condition you want to be alerted for:

Buy Signal
Sell Signal
Bullish Divergence
Bearish Divergence


Configure notification preferences and save

Trading Strategy
This indicator is best used:

On higher timeframes (4H, Daily) for more reliable signals
As confirmation with other indicators or price action
At market extremes where divergences are more meaningful
With proper risk management (stop losses below recent swing lows for buys, above recent swing highs for sells)

Remember that no indicator is 100% accurate. This tool works by identifying situations where price movement isn't confirmed by volume, suggesting a potential reversal, especially when RSI conditions align.

Valerio Diotallevi