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Divergence Detection (Divergence Suite)

The TRN SMT/Divergence Suite works with any given indicator, even custom ones. In addition, there are 11 built-in indicators. We have chosen a selection of different momentum, trend following and volume oscillators that gives you maximum flexibility. Most noticeable is the cumulative delta indicator, which works astonishingly well as a divergence indicator.

Divergence Trading Scenario Example

Following is the full list of the build in indicators/oscillators:

  • AO
  • CDV
  • RSI
  • W%R
  • MFI
  • Stochastic
  • MACD
  • CCI
  • ADX
  • ATR
  • Cumulative Delta

Types of Divergences​

What Are Divergences?​

When the price of an asset moves in one direction, but its indicators move in the opposite direction, this is called a divergence. Divergences can be a powerful signal that a trend reversal is about to occur.

Regular Divergences​

Example of RSI Bullish Divergence in TRN SMT/Divergence Suite

There are two types of regular divergences:

  • Bullish divergence: Occurs when price makes lower low but indicator shows higher low
  • Bearish divergence: Occurs when price makes higher high but indicator shows lower high

Hidden Divergences​

TRN Hidden AO Divergence Example

Hidden divergences indicate potential trend continuation:

  • Hidden Bearish Divergence: Price higher high + Indicator lower high
  • Hidden Bullish Divergence: Price lower low + Indicator higher low

How to Use the Divergence Detector​

Step-by-Step Guide​

SMT/Divergence Suite Parameter Settings

  1. Access Settings

    • Open indicator settings (1)
    • Navigate to "Parameters" section (2)

  2. Select Oscillator

    • Choose from 11 built-in options (3)
    • Default: Awesome Oscillator (AO)

  3. Interpret Results

    • Blue lines = Bullish divergence
    • Red lines = Bearish divergence

Bullish vs Bearish Divergence Scenarios

Pro Tip

Combine divergence signals with Trend Bars Pro alerts for confirmation

FAQ​

Next Steps​

Combine with Trend Bars Pro

Learn how to strengthen your trading signals by combining divergence detection with Trend Bars Pro

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