NC Divergence Expert Description
NC Divergence Expert is a divergence indicator for NinjaTrader 8, and it comes with the full C# source code. Divergence is one of the best-known signals around, and it was on my challenge list for a long time. The tricky part is finding swing points the same way every time, so I reused the pivot detection from my Pivot Analyzer. Like any pivot-based tool, it only sees a divergence once the second pivot is confirmed.
How it works. A swing high needs Hill Size Bars on each side (3 by default), each lower than it by at least Min Drop Size; a swing low is the mirror, and a flat top counts as one pivot. With Master Series on Price (the default), pivots come from bar highs and lows and Min Drop Size is in ticks (4). On Input, they come from your input series, in its units. Each new swing high is compared with the previous one, reading the other series at the same two bars, and lows the same way. Regular (the default): a higher high in price with a lower indicator high is bearish, a lower low with a higher indicator low is bullish. Hidden is the reverse: a lower high against a higher indicator high, or a higher low against a lower indicator low.
What you see. Everything is drawn on the price chart, with diamonds on the pivots. On a divergence, an arrow appears on the bar where the second pivot is confirmed: purple down for bearish, dark cyan up for bullish. A dashed line joins the two pivots, dashed vertical lines mark the section and the bars between are painted the same color. Each part has its own on/off switch. It calculates on bar close.
How to use it. Set the Input series to what you want to compare, like RSI, Stochastic or an EMA; by default it's just the chart's close. Use Regular to spot a move losing steam and Hidden to look for continuation. Raise Hill Size Bars or Min Drop Size for bigger swings. Once an arrow is drawn, it stays.
Make it yours. Like all my frameworks, it comes with a code review video that explains the divergence algorithm. Use it as is, learn from the code, or change it yourself or with AI like Claude. A hidden Divergence plot (-1 bearish, +1 bullish, 0 otherwise) is ready for strategies. You could add an alert, compare a pivot with the one two swings back, or take bearish signals only above an RSI level you choose. Pivots, the divergence test and drawing are separate parts, so it's an easy base to build on. Have some good trades!
