RSI Divergences KittenRSI Divergences + Adjustable RSI σ-Bands + Band Pierce Signals (with optional US weekend filter)
Description:
This indicator combines three RSI tools into one clean workflow:
1. RSI σ-Bands (mean ± k·σ)
It builds dynamic upper/lower bands around RSI using a moving mean and standard deviation. These bands adapt to regime changes (expanding in volatile periods, contracting in quiet periods). Bands can be clipped to RSI’s natural 0–100 range and optionally filled for readability.
2. Band “Pierce” Signals
It prints a marker when RSI crosses outside the upper band (overextension) or outside the lower band (underextension). These pierces are useful as timing signals for mean-reversion setups, especially when you expect price to revert back toward a reference mean (e.g., VWAP). Optional “re-entry” markers show when RSI crosses back inside the bands.
3. Proper RSI Divergences (Regular + Hidden)
Divergences are detected using RSI pivots (not price pivots). At each RSI pivot, the script samples the corresponding price high/low on that pivot bar and compares it to the previous pivot within a configurable bar-distance window.
• Bullish divergence: price lower low + RSI higher low
• Hidden bullish: price higher low + RSI lower low
• Bearish divergence: price higher high + RSI lower high
• Hidden bearish: price lower high + RSI higher high
Line width is configurable for visibility.
Manual Band Adjustment (Near-Miss Control):
If your best reversals “nearly” tag the band, you can manually tune sensitivity without rewriting the math:
• Band offset (RSI points): nudges trigger levels
• Band width scale: tightens/widens the σ-band envelope
US Weekend Filter (Optional):
You can optionally suppress pierce/divergence signals during US weekend hours (Fri 17:00 ET → Sun 17:00 ET) and optionally shade those periods to help isolate low-liquidity behavior.
Notes / Intended Use:
This is designed as a mean-reversion timing tool, not a standalone trading system. For best results, combine signals with a market “mean” (e.g., rolling VWAP) and basic risk controls.
Pine Script® Indikator
