Knoxville Divergence Indicator MT4

Plain momentum divergence throws a lot of false signals. The Knoxville Divergence indicator narrows that down by requiring a second confirmation: RSI has to have actually reached overbought or oversold territory between the two swing points before it will draw a line. Download it below and drop it directly onto your price chart — unlike most divergence tools, it draws on the candles themselves rather than in a separate window.

What Is Knoxville Divergence?

Knoxville Divergence is a chart-window indicator that runs once per new bar close and scans up to LookbackCandles bars back (2,000 by default) to identify swing pivot highs and lows — a bar counts as a pivot high if its High is greater than both immediate neighbors, and a pivot low if its Low is lower than both neighbors.

It then walks through consecutive pivot highs looking for a specific pattern: price making a higher high from one pivot to the next, while the Momentum indicator (MomentumPeriod, MomentumPrice) makes a lower high over the same two points — classic bearish momentum divergence. Before drawing anything, it also checks that RSI(RSIPeriod, RSIPrice) crossed above RSIBearLimit somewhere between those two pivots. Only if both conditions are true does it draw a maroon trend line connecting the two pivot highs directly on the price chart. The mirror case runs on pivot lows: price making a lower low while Momentum makes a higher low, with RSI required to have dropped below RSIBullLimit somewhere in between, drawn as a dark green line.

Key Features

• Dual-confirmation divergence — combines a Momentum divergence check against price with an RSI overbought/oversold filter, rather than relying on momentum divergence alone.
• Drawn directly on price — trend lines connect the actual swing highs and lows on the candlestick chart, so you never have to cross-reference a separate oscillator window.
• Adjustable lookback — LookbackCandles controls how far back (up to 2,000 candles by default) the indicator scans for qualifying pivot pairs.
• Configurable Momentum and RSI settings — MomentumPeriod, RSIPeriod, and the applied price for each can be tuned independently of the divergence detection itself.
• Adjustable RSI thresholds — RSIBearLimit (default 70.0) and RSIBullLimit (default 30.0) control how strict the overbought/oversold confirmation filter is.
• Bar-close calculation only — the entire scan runs once per new bar via an internal isNewBar() check, not on every tick, and automatically clears and redraws its own lines as new pivots form.

How to Use It

Copy the compiled indicator into MQL4/Indicators, restart or refresh MetaTrader, and drag it onto a chart — it attaches to the main price window. LookbackCandles can be left at 2,000 for a full scan of chart history, or lowered if you only care about recent swings and want to reduce the number of lines drawn.

Adjust MomentumPeriod and RSIPeriod to match how sensitive you want the underlying calculations to be, and tighten or loosen RSIBearLimit/RSIBullLimit depending on how strict you want the overbought/oversold confirmation to be — pulling RSIBearLimit down from 70 or pushing RSIBullLimit up from 30 will produce more divergence lines, at the cost of some quality.

Reading it is straightforward: a fresh maroon line connecting two swing highs means price pushed to a new high while momentum weakened and RSI had reached overbought somewhere in between — treat it as a warning that the current up-move may be running out of steam. A dark green line connecting two swing lows is the mirror bullish signal. Because lines are only drawn between confirmed, closed-bar pivots, what you see is the completed pattern, not a live prediction that might vanish.

Best Timeframes / Best Use Cases

Because LookbackCandles, MomentumPeriod, and RSIPeriod are all adjustable, the indicator can be scaled to intraday charts or higher timeframes alike. Pivot-based divergence patterns naturally take a number of bars to complete on either side, so it reads best on charts where you’re willing to wait for a full swing to form rather than reacting tick by tick.

Final Thoughts

The RSI confirmation layer is what separates this from a generic momentum-divergence script — it filters out a lot of the weak divergence patterns that plain Momentum-vs-price comparisons tend to flag. If you already watch for divergence manually, this automates the pattern-spotting while keeping the confirmation logic transparent in the code itself.