When an oscillator valley is shallower than the previous oscillator valley while the price corresponding to the most recent oscillator valley is lower than the price corresponding to the previous oscillator valley, a Bullish "Pivot" diverging condition has occurred.    This  generally signals a price reversal to the upside. Conversely, when an oscillator peak is lower than the previous oscillator peak while the price corresponding to the most recent oscillator peak is higher than the price corresponding to the previous oscillator peak, a Bearish "Pivot" diverging condition has occurred.  This generally signals a price reversal to the downside.

A Bullish "Trend" divergence occurs when an oscillator valley is deeper than its predecessor while the price corresponding to the most recent oscillator valley is higher than the price corresponding to the previous oscillator valley. A Bearish "Trend" divergence occurs when an oscillator peak is higher than its predecessor while the price corresponding to the most recent oscillator peak is lower than the price corresponding to the previous oscillator peak. Trend divergences, while more rare than Pivot divergences, are very strong price continuation signals, and trades taken with the trend on these signals have a high probability of continuing follow-through in the direction of the trend.

Summary of divergence types:
Pivot Buy Divergence = higher oscillator valleys, lower price lows
Pivot Sell Divergence = lower oscillator peaks, higher price highs
Trend Sell Divergence = higher oscillator peaks, lower price highs
Trend Buy Divergence = lower oscillator valleys, higher price lows

The Arps AutoDiv Divergence Detector looks for and identifies when a divergence exists between price and a selected oscillator. The indicator plots a dot and a pair of letters when a divergence is detected. The letter code is as follows:
PS = Pivot Sell Divergence
PB = Pivot Buy Divergence
TS = Trend Sell Divergence
TB= Trend Buy Divergence

NOTE: Before modifying any inputs, be sure you have read the section entitled "Using Input Settings."

Inputs for the Arps AutoDiv divergence indicator include the following:

OSC Type (Default = SlowD; Other choices are FastD and Arps Fear/Greed Oscillator. Click the small down arrow to make your selection.) This input gives you the option to choose among 3 different oscillators to use in the divergence determination. Currently, you can choose between 3 oscillator types by entering a 1, 2, or 3.

OSC Length (Default = 4 for SlowD, FastD and Fear/Greed ) This input sets the “length” or “sensitivity” input for the oscillator you specify. Generally, the higher you make this value, the larger will be the trends the oscillator reveals.

Div Sensitivity (Default = 2.5, Range = 1-10) This input is how you control the degree of divergence required to generate a signal. A value of 1 would mean that the study would look for the minutest divergence. A value of 5 would force the study to look for a divergence between two medium-sized peaks/valleys. Similarly, a Div Sensitivity setting of 10 would look for major divergences requiring large peaks/valleys. Some users run multiple versions of this study on the same chart at the same time with Div Sensitivity settings of 1, 5 and 10, for example, in order to spot confluence between minor and major divergences.