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Divergences

6 min · DYOR Education
FreeStart · Indicator settings
Goal

Take apart the “Divergences” tab: what the platform counts as a divergence, how it draws it on the chart, what to configure and how to put it in an alert.

A divergence is a split between the price and an indicator line. The price made a new low, the indicator did not. Or the price made a new high, the indicator did not. The platform finds such spots itself and draws them on the chart. Every indicator with lines has a “Divergences” tab.

COIN DEPTH INDEX on BTC/USDT, 1h with divergences enabled: lines between the indicator’s extremes and “Bull” and “Bear” labels
COIN DEPTH INDEX on BTC/USDT, 1h with divergences enabled: lines between the indicator’s extremes and “Bull” and “Bear” labels
What it shows
  • Bullish — the price made a low below the previous one, the indicator a higher one. The “Bull” label.
  • Bearish — the price made a high above the previous one, the indicator a lower one. The “Bear” label.
  • The line is drawn on the indicator’s pane and connects two of its extremes. Bullish and bearish ones have their own colours.
  • An extreme is confirmed when the set number of candles has passed to its right. Until then the divergence is drawn dashed and can disappear if the indicator goes further.
  • Hidden — the opposite picture: the price made a low above the previous one, the indicator a lower one. Counted as a trend-continuation signal. Off by default.
Where to find it
  1. Open the indicator’s settings: double-click its name or the gear in the legend.
  2. The tab Divergences → the checkbox Show divergences. It is unchecked by default.
  3. Every indicator on the chart has its own settings: enabling it on COIN DEPTH INDEX changes nothing on the COIN RATIO next to it.
The “Divergences” tab of COIN DEPTH INDEX: enabling, pivot-search windows, hidden divergences, dashed lines, colours
The “Divergences” tab of COIN DEPTH INDEX: enabling, pivot-search windows, hidden divergences, dashed lines, colours
Settings
FieldOptionsDefaultWhat it changes
Show divergenceson
off		offTurns the search and drawing on.
- Want to see splits on this indicator — on.
Bars left of a pivot1–505How many candles on the left must be above the low or below the high for the point to count as an extreme.
- Want only big turns — set more.
- Want to catch small ones — fewer.
Bars right of a pivot1–505How many candles to wait after the extreme to count it as confirmed.
Until they have passed, the divergence is drawn dashed.
- Want to see it earlier — fewer, but some dashed ones will disappear.
- Want only reliable ones — more.
Min bars between pivotsnumber5The minimum distance between the two extremes of one divergence.
Closer does not count.
Max bars between pivotsnumber60The maximum distance.
Pairs further apart are not searched.
Hidden divergenceson
off		offShow the opposite picture — a trend-continuation signal.
- Want to see those too — on.
Forming ones dashedon
off		onDraw unconfirmed divergences dashed.
- Want only confirmed ones — off.
Bullish color · Bearish color2 fieldsgreen · redColours of the lines and labels.
In alerts

The list of comparison operators has Bullish divergence and Bearish divergence. These are events: they have no right-hand side.

  • They work only when the left side is Composite metric: any indicator built in the Metrics Builder is compared with the coin’s price.
  • The fields are the same as in the tab: bars left and right of a pivot (1–50), bars between pivots (1–500), the hidden-divergences switch.
  • It fires once — at the moment the second extreme is confirmed.
Try it yourself
  1. Add COIN DEPTH INDEX on BTC/USDT 1h, open its settings → the “Divergences” tab → enable “Show divergences”.
  2. Find a dashed line on the pane and wait until five candles pass to its right.
What you should get. The line became solid or disappeared. Solid — the extreme was confirmed; disappeared — the indicator went further and there was no split.
Takeaway

A divergence is a split between the price and an indicator line: a new price low without a new indicator low, or the other way round. The platform finds them itself and draws them on the indicator’s pane; dashed — until the second extreme is confirmed. In an alert these are two event operators for a Composite metric.

Quick check

A divergence on the chart is drawn dashed. What does it mean?

Show answer

Correct answer: The second extreme is not yet confirmed: fewer candles than set have passed to its right

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