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Divergence Detection

The Swing Suite detects four divergence types — regular bullish, hidden bullish, regular bearish, and hidden bearish — with both confirmed and early detection states. Unlike standalone divergence tools, the Swing Suite integrates divergence detection into its swing analysis framework. The same swing detection engine that powers zig-zag lines, trend identification, and support/resistance also identifies divergence swing points, giving you structural context alongside every divergence signal.

Divergence Types

Regular Divergences

Regular divergences signal that the current trend is losing momentum and a reversal may be approaching.

Swing Suite showing regular divergence with RSI — price vs oscillator comparison on a trending chart

Regular Bullish: Price makes a lower low while the oscillator makes a higher low. The Swing Suite draws a bullish divergence line connecting the two swing lows on both the oscillator and the price chart. This pattern suggests selling pressure is weakening despite lower prices.

Regular Bearish: Price makes a higher high while the oscillator makes a lower high. The Swing Suite connects the swing highs with a bearish divergence line. This pattern indicates buying momentum is fading despite higher prices.

Swing Suite bearish divergence in a downtrend — price making higher highs while oscillator weakens

Hidden Divergences

Hidden divergences signal that the current trend has underlying strength and is likely to continue.

Swing Suite showing hidden divergence examples — bullish and bearish patterns with oscillator comparison

Hidden Bullish: Price makes a higher low while the oscillator makes a lower low. The trend is up, and despite the oscillator dip, price holds above the previous swing low — a sign of hidden buying strength.

Hidden Bearish: Price makes a lower high while the oscillator makes a higher high. The trend is down, and despite the oscillator rise, price stays below the previous swing high — a sign of hidden selling pressure.

All Four Types at a Glance

Swing Suite displaying bullish and bearish divergence types with labeled examples

TypePrice ActionOscillatorSignal
Regular BullishLower lowHigher lowPotential reversal up
Hidden BullishHigher lowLower lowTrend continuation up
Regular BearishHigher highLower highPotential reversal down
Hidden BearishLower highHigher highTrend continuation down

Each type is independently togglable with its own color, label text (e.g., "bull reg," "bear hid"), and line style settings.

Confirmation States

The Swing Suite tracks two detection states for every divergence:

StateWhen It FiresReliabilityAlert Type
Early (Unconfirmed)During bar formation, before closeLower — signal may not holdEarly Bullish / Early Bearish
ConfirmedAfter bar close validates the swing pointHigher — swing point is finalizedConfirmed Bullish / Confirmed Bearish
Use Confirmed Signals for Trading

Early divergence signals give advance notice but can disappear if the bar closes differently. The Swing Suite marks confirmed divergences only after the bar closes and the swing point is validated. Use confirmed signals for trade decisions and early signals for watchlist preparation.

Value Condition Filters

Available for bounded oscillators (CCI, RSI, MFI, Stochastic, Williams %R), Value Condition filters restrict divergence detection to specific oscillator zones. The Swing Suite only triggers divergences when the oscillator meets the zone requirement.

FilterWhat It Does
Anytime (Off)No zone restriction — divergences detected anywhere
Above OverboughtOnly detect divergences when oscillator is above the OB threshold
Below OversoldOnly detect divergences when oscillator is below the OS threshold
Between ThresholdsOnly detect divergences when oscillator is between OB and OS

Point Matching

Point Matching controls which part of the divergence must meet the Value Condition:

OptionWhat It Means
Only StartThe first swing point must be in the restricted zone
Only EndThe second (current) swing point must be in the restricted zone
BothBoth swing points must be in the restricted zone
Reducing False Divergences

Combine Value Condition "Below Oversold" with Point Matching "Only End" on RSI to detect bullish divergences only when the current RSI reading is in oversold territory. This filters out divergences that form in neutral zones where the Swing Suite's signals carry less predictive weight.

Visualization Settings

The Swing Suite provides granular control over how divergences appear on the chart:

SettingDefaultWhat It Controls
Show on Main ChartOnDraws divergence lines on the price chart in addition to the oscillator pane
Line StyleDottedStyle for divergence connecting lines (Solid, Dotted, Dashed)
Line Width3Thickness of divergence lines
Text Offset20Distance of divergence labels from the swing point — increase for busy charts

Each divergence type has independent settings for:

  • Enable/Disable toggle
  • Label text (customizable per type)
  • Color (blue for bullish, pink for bearish by default)

Swing Suite Cumulative Delta divergence with multiple divergence types active on a single chart

Swing Suite vs SMT/Divergence Suite

Both indicators detect divergences, but they serve different roles:

FeatureSwing SuiteSMT/Divergence Suite
IntegrationDivergence shares swing detection with zig-zag, trends, statistics, S&RStandalone divergence-focused tool
SMT Symbols2 simultaneous symbols1 symbol
Oscillator VisualizationMinimal (divergence lines only)Detailed oscillator pane with thresholds
Best ForStructural swing analysis with divergence contextDedicated divergence and SMT scanning

For detailed comparison of oscillator options, see Built-In Oscillators. For inter-market divergence, see SMT Divergence.

Alerts

The Swing Suite provides 8 oscillator divergence alerts — one confirmed and one early alert for each divergence type:

AlertDefaultWhat It Fires On
Confirmed Regular BullishOnBar-close-validated regular bullish divergence
Confirmed Hidden BullishOnBar-close-validated hidden bullish divergence
Confirmed Regular BearishOnBar-close-validated regular bearish divergence
Confirmed Hidden BearishOnBar-close-validated hidden bearish divergence
Early Regular BullishOffIntrabar regular bullish divergence before bar close
Early Hidden BullishOffIntrabar hidden bullish divergence before bar close
Early Regular BearishOffIntrabar regular bearish divergence before bar close
Early Hidden BearishOffIntrabar hidden bearish divergence before bar close

To create an alert: enable the desired types in settings, right-click the indicator, select Add alert on Swing Suite, and choose Any alert() function call.

FAQ

What is the difference between regular and hidden divergence in the Swing Suite?

Regular divergences in the Swing Suite signal potential trend reversals — price makes a new extreme while the oscillator fails to confirm it. Hidden divergences signal trend continuation — price holds a higher low (bullish) or lower high (bearish) while the oscillator moves against the trend. The Swing Suite detects all four combinations independently, each with its own toggle, color, label text, and line style.

How does the Swing Suite confirm a divergence signal?

The Swing Suite tracks two confirmation states for every divergence. An early (unconfirmed) divergence appears during bar formation before the close. A confirmed divergence fires after the bar closes and the swing point is validated. The Swing Suite provides separate alerts for each state — use confirmed signals for trade decisions and early signals for advance watchlist alerts.

What do the Value Condition filters do in the Swing Suite?

Value Condition filters in the Swing Suite restrict divergence detection to specific oscillator zones. "Above Overbought" only detects divergences when the oscillator is above the overbought threshold. "Below Oversold" restricts to oversold zones. "Between Thresholds" requires the oscillator between OB and OS levels. These filters are available for CCI, RSI, MFI, Stochastic, and Williams %R.

How is Swing Suite divergence detection different from the SMT/Divergence Suite?

The Swing Suite integrates divergence detection into its broader swing analysis framework — the same swing detection engine that powers zig-zag lines, trend identification, statistics, and support/resistance also drives divergence matching. The SMT/Divergence Suite is a standalone divergence tool with more detailed oscillator visualization. Choose the Swing Suite when you want divergences contextualized within a complete structural analysis.

Can I get alerts for Swing Suite divergences?

Yes, the Swing Suite provides 8 oscillator divergence alerts — one confirmed and one early alert for each of the four divergence types (regular bullish, hidden bullish, regular bearish, hidden bearish). Enable the desired types in the Swing Suite settings, right-click the indicator, select "Add alert on Swing Suite," and choose "Any alert() function call."

Next Steps