# divergence

## What Is Divergence?

Divergence occurs when **price and an indicator move in opposite directions**. It signals that the current price move is losing internal support — the underlying Momentum, Expansion Wave, or Order Flow is not confirming what price is doing.

In Synergy Signal, divergences are detected on three independent sources and contribute a **soft score boost** to the signal engine. They never block entries on their own.

## Types of Divergence Detected

### Bullish Divergence (Long Signal Boost)

Price makes a **lower low** while an indicator makes a **higher low**. Sellers are losing momentum even as price drops — a reversal may be forming.

| Type                  | Setting Name              | Price     | Indicator                            |
| --------------------- | ------------------------- | --------- | ------------------------------------ |
| Momentum Divergence   | Use Momentum Divs         | Lower low | Momentum line higher low             |
| Expansion Divergence  | Use Expansion Divergence  | Lower low | Expansion Wave bull value higher low |
| Order Flow Divergence | Use Order Flow Divergence | Lower low | Order Flow value higher low          |

### Bearish Divergence (Short Signal Boost)

Price makes a **higher high** while an indicator makes a **lower high**. Buyers are losing momentum even as price rises.

| Type                  | Setting Name              | Price       | Indicator                            |
| --------------------- | ------------------------- | ----------- | ------------------------------------ |
| Momentum Divergence   | Use Momentum Divs         | Higher high | Momentum line lower high             |
| Expansion Divergence  | Use Expansion Divergence  | Higher high | Expansion Wave bear value lower high |
| Order Flow Divergence | Use Order Flow Divergence | Higher high | Order Flow value lower high          |

## How Detection Works

The indicator uses **pivot points** to identify swing highs and lows:

* A **pivot low** is a bar whose low is lower than the 2 bars to its left and 2 bars to its right
* A **pivot high** is a bar whose high is higher than the 2 bars to its left and 2 bars to its right

When a new pivot forms, the indicator compares it to the previous pivot. If price makes a lower low but the indicator makes a higher low → bullish divergence detected.

### Age Limit

Divergences are only counted if both pivots occurred within the last **120 bars**. Older divergences are discarded as stale.

### Freshness Window

Once a divergence is detected at a pivot, it remains active for the number of bars set in **Divergence Fresh Bars** (default 20). This keeps the divergence score active during the window when price typically reacts.

{% hint style="info" %}
**Note:** Pivot points are confirmed 2 bars after they form. This means a divergence detected at a pivot is already 2 bars old when it registers. Set Divergence Fresh Bars to at least 5–10 to ensure the boost is active when the signal fires.
{% endhint %}

## Settings (Divergence Section in UI)

| Setting                   | Default | Description                                                     |
| ------------------------- | ------- | --------------------------------------------------------------- |
| Use Momentum Divs         | ✅ On    | Detect divergences on the Momentum line                         |
| Use Expansion Divergence  | ✅ On    | Detect divergences on the Expansion Wave                        |
| Use Order Flow Divergence | ✅ On    | Detect divergences on the Order Flow bars                       |
| Min Divergences Required  | 1       | How many divergence types must fire before any points are added |
| Divergence Fresh Bars     | 20      | How many bars a detected divergence remains active              |

## Min Divergences Required

This controls how many divergence types must agree before the pillar contributes to the score:

| Value | Behavior                                           |
| ----- | -------------------------------------------------- |
| 1     | Any single divergence type activates the pillar    |
| 2     | Two types must agree (e.g., Momentum + Order Flow) |
| 3     | All three types must agree simultaneously          |

Each active divergence type contributes its individual point to the score. Setting Min Divergences Required to 2 ensures at least 2 types are present before any divergence points are added.

## Divergence as a Soft Pillar

A key design principle: divergences **add score points but never block entries**. A strong setup with Expansion Wave + Momentum + Order Flow all aligned should still fire even if no divergence is present. Divergence is a **bonus confirmation** — not a prerequisite.

When divergence IS present alongside strong hard-pillar confluence, the total score rises and the setup carries more weight.

## Tips

* Set **Divergence Fresh Bars** higher (40–60) on higher timeframes (4H, Daily) where pivots take more bars to form and confirm.
* On fast timeframes (1m, 5m), divergences can be noisy. Set **Min Divergences Required** to 2 to require more agreement before counting any divergence points.
* **Triple divergence** (all three types firing simultaneously) is a particularly powerful setup, especially when it coincides with the hard-pillar conditions.
* To effectively remove divergence from scoring without adjusting Min Score, disable all three divergence toggles (Use Momentum Divs, Use Expansion Divergence, Use Order Flow Divergence).


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