MT4 RSI Divergence Indicator (Scanner) is a is a tool that automatically scans selected assets and timeframes to detect divergence conditions on all assets and timeframes designated by a trader to detect classic and hidden divergence of the RSI indicator.
Divergence is a widely used concept in technical analysis. Traders use divergence to identify potential exhaustion in the current trend and to evaluate areas of confluence for structural market analysis.
We have designed this indicator as a dashboard so that you can visualise the most recent divergences between assets and timeframes that interest you in your trading. This approach makes it possible to see the market at a glance, helping you quickly identify which pairs and timeframes currently display divergence patterns. Click any cell on the dashboard to open the corresponding chart and examine the divergence instantly.
You can set up an alert that will notify you when divergence conditions are detected, reducing the need for manual chart monitoring.
Divergence is a discrepancy between what the price chart shows and the trend line of the indicator itself. Identifying these discrepancies helps you see when price action loses the momentum confirmed by the oscillator.
Traders use divergence as an additional analytical reference when evaluating potential changes in price structure.
Divergence between the asset price and the RSI indicator can imply two situations:
Divergences are divided into two types – bullish and bearish.
Bearish RSI divergence occurs when price forms a sequence of highs in an uptrend, while the RSI does not follow that trend and forms a bearish trend-line.
When the price on the chart rises and the RSI value falls, this may indicate that upward momentum is weakening within the current price movement. This indicates a bearish technical bias in the current price structure.
A bullish RSI divergence forms when price reaches a series of lower lows while the RSI creates a rising trend-line. This technical condition reflects a loss of downward momentum, indicating a bullish bias in the current price structure.
Rising RSI values against falling prices suggest a potential trend exhaustion. This discrepancy highlights a bullish bias, as the internal strength of the asset no longer confirms the downward move.
The indicator displays the identified divergences in the form of lines connecting pairs of price and indicator peaks, and visual markers (arrows) that show the direction of the detected technical condition. Green arrows highlight bullish conditions, while red arrows mark bearish setups on your chart. Bullish divergence is shown as a green line, while a bearish divergence is shown as a red line.
The indicator detects two types of divergences: classic and hidden. If the divergence is classic, the line will be continuous, and if it is hidden, the line will be dashed.
Please note that since divergences are identified using formed indicator vertices, the arrow will appear 2 bars back as a formed vertex is defined as:
Divergence is a momentum study, not a complete trading system. It should be used as a component of a broader analytical framework.
The Dashboard allows you to quickly monitor selected instruments in relation to RSI divergences identified across different assets and timeframes:
Each cell of an asset / timeframe contains several blocks, each of which shows the most recent divergence found on the chart of that particular asset / timeframe
The colour of the field indicates whether the divergence was bullish or bearish – the higher number of bars ago the pattern was identified, the paler the cell colour will be. This helps you prioritize charts based on how recently the divergence appeared.
Clicking on the corresponding cell will change your chart to the asset and timeframe of the selected cell.
This structure allows traders to monitor multiple instruments simultaneously without switching between charts.
The indicator input parameters are quite simple and do not require any additional explanation.
It allows you to select the assets and timeframes that you want to track.
The “max_bars” parameter limits the number of calculations in order to speed up the indicator, if you do not need it to calculate divergences too far back in the past.
In the indicator settings, you can select the parameter for displaying classic and hidden divergences.
We can customize this indicator to your requirements by adding new features, modifying calculation logic, or combining multiple tools into a unified solution.
We also develop automated trading strategies (Expert Advisors) based on custom logic. The system can include configurable management modules such as dynamic risk parameters, multi-stage trailing stops, additional confirmation filters, and other custom functionality based on your specifications.
The final solution is delivered with full source code and post-delivery support. Contact us for a free consultation to discuss the scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
No Financial Advice — Nordman Algorithms does not provide discretionary trading signals, investment advice, or managed signal services. Our software represents a mathematical visualization of historical and real-time data. The appearance of a visual marker does not guarantee a profitable trade or predict future market behavior.
Trading Risk Warning — Futures, Forex, and options trading involve significant risk. Risk capital is money that can be lost without jeopardizing financial security. Only risk capital should be used for trading. Past performance is not indicative of future results. View Full Risk Disclosure: https://www.nordman-algorithms.com/risk-disclosure/
ESMA Risk Warning — Financial instruments, especially those involving leverage such as CFDs and Forex, are complex and carry a high risk of rapid financial loss. Our software provides analytical outputs and visual markers based on predefined mathematical conditions and does not mitigate or reduce inherent market risks. You should carefully consider whether you understand how leveraged financial instruments work and whether you can afford the high risk of losing your capital.
CFTC Rule 4.41 — Hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, simulated results do not represent real trading. Because trades have not actually been executed, these results may under- or over-compensate for the impact of market factors such as liquidity. No representation is being made that any account will achieve profits or losses similar to those shown.
