The formula automatically scans the last 50–100 bars for hidden and regular divergences between price and the oscillator. When found, it superimposes a visual dot or arrow on the chart.
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The indicator lines change to a contrasting color (commonly red or yellow), or a red arrow points downward. This signals that selling pressure is dominant and a short position is favorable. 2. Momentum and Volatility Filtering The formula automatically scans the last 50–100 bars