Hello, I search an exploration which will find a divergence between the Close and an indicator (RSI(14) for example). Thank you for your help. Patrick.

Patrick, I am just starting to try and develop a good divergence indicator. I tried the same formula (basically) you have posted and found the signals were less than desirable. The problem with an indicator like RSI(14) using a 3% peak is that many peaks can be formed between the time two peaks are formed by the high. When you compare the last two peaks of the high at 3% (let's say they occurred on 1/5/2005 and 2/5/2005) to the last two peaks of the RSI(14)... the last two peaks of the RSI(14) may have occurred on 1/25/2005 and 2/5/2005. You are not comparing values using the same time frame. From what I can see, we need some way to store the RSI(14) value at the time of each peak (high) in price.... then compare if we have a higher peak in price with a lower value with the RSI(14). Still working on it...

Thank you, Patrick. Good point about using price or the indicator... I would think you would have to check both ways because divergence can span two peaks/troughs on price, or just a few bars on price (depending on the indicator used). Also, we would need to run with different % retracements.