1m Divergence Radar v.1

=== Version 1 Beta, Revision 400 ===
=== Divergence Radar ===
=== Jason Tang ===

DESCRIPTION:
This script monitors several other indicators in the background, and when it detects certain combinations that indicate bullish or bearish divergences, it will create a buy or sell signal and shade the background green or red.

The indicators that this script monitors:
- 1m, 3m, 5m MACDS
- Higher Lows (Bullish Divergence) on the 3m and 5m MACD
- Lower Highs (Bearish Divergence) on the 3m and 5m MACD
- Lower Highs on the 3m and 5m DMI for buying strength (Bearish Divergence)
- Lower Highs on the 3m and 5m DMI for selling strength (Bullish Divergence)
- The 1m and 3m Keltner channel (shown as orange backgrounds only), to detect extremes in price.

The indicator will also watch for "squeeze" or "crash" conditions, at which time it will avoid sending a sell or buy signal. I have had many frustrations from shorting into a squeeze, and coded in a "don't catch the knife" safety mechanism.

To see these internal calculations, you can go to settings and check "Show Internals". Then you can check the Style tab for a label for each internal indicator.

WHY I MADE THIS:
I often watch multiple timeframes while day trading and it can be a mentally difficult task to keep track of all of the indicators on each timeframe. 1m, 3m, 5m, price candles, MACD, DMI, and more. This indicator is meant to "offload" much of the routine mental calculation like "Is there a MACD divergence on this timeframe?". It also provides me a way to visually backtest the strength of combinations of divergences. This is an ongoing project.

USAGE:
- This indicator should mainly be used on the 1m ES chart. It is meant to assist me with day trading the ES futures contract.
- Please keep in mind this is a BETA script and is in ongoing development. I tune it almost every day or week and will update it on a regular basis.
- The "buy" and "sell" zones this indicator shows are COUNTER-TREND indicators. Please keep that in mind.
- If price is RISING into a RED background, I would consider selling, if my other systems agree and if I find the risk/reward acceptable.
- If price is FALLING into a GREEN background, I would consider buying, if my other systems agree and if I find the risk/reward acceptable.

A dim RED background:
- The presence of lower highs on the 3m MACD, 5m MACD, 3m DMI Buying Strength, or 5m DMI Buying Strength

A bright RED background:
- An extremely overdone price move that is also showing some divergences. My best effort at algorithmically detecting a place to sell.

A dim GREEN background:
- The presence of higher lows on the 3m MACD, 5m MACD
- The presence of lower highs on the 3m DMI Selling Strength, or 5m DMI Selling Strength.

A bright GREEN background:
- An extremely oversold price that is also showing some divergences. My best effort at algorithmically detecting a place a buy.

A bright green dot above price (if Show Internals is checked):
- A SQUEEZE signal that cuts off any sell signal. In these conditions technical indicators do not seem to matter as forced buyers are dominating the price action. Do not be tempted to short the rip.

A bright red dot below price (if Show Internals is checked):
- A CRASH signal that cuts off any buy signal. In these conditions technical indicators do not seem to matter as forced sellers are dominating the price action. Do not be tempted to catch the knife.