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.
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.
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.
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.
Settings (Divergence Section in UI)
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:
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).
Was this helpful?