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The Knoxville Scale Indicator is designed by combining two indicators: the Relative Strength Index (RSI) and the Momentum .

By analyzing price action's divergence from momentum, this indicator signals a weakening of the current trend and the possibility of a reversal.

Knoxville Deviation Detection Metrics Specification Sheet

The table below shows the functionality of the Knoxville Divergence Detection indicator:

Knoxville Graduation Inspection Indicators at a Glance

The Knoxville Divergence Indicator identifies existing divergences by analyzing momentum and plots them on the chart using colored lines.

These lines include:

• Green line: indicates the existence of positive divergence and is drawn below the candle;
• Red line: occurs in case of negative divergence and is drawn above the candle.

Positive Divergence

Based on the AUD/USD one-hour chart, this indicator detects divergences between price and momentum and highlights them on the chart.

In this case, traders may choose to buy trades based on their personal strategies.

Negative Divergence

Based on the Bitcoin (BTC) chart, the Knoxville Divergence indicator identifies negative divergences after analyzing price momentum versus momentum. As shown in the chart, the price started to fall after the divergence detection.

Knoxville Divergence Indicator Setup

The settings for the Knoxville Divergence Detection indicator are shown in the image below:

• LookbackCandles: The number of candles used to analyze the divergence
• MomentumPeriod: momentum calculation period
• MomentumPrice: Momentum calculated price
• RSIPeriod: RSI calculation period
• RSIPrice: RSI calculated price
• RSIBearLimit: overbought threshold
• RSIBullLimit: Oversold threshold

Conclusion

The Knoxville Divergence Detection Indicator, by combining "RSI" momentum, determines the difference between price and market strength.
These differences appear on the chart as green lines for bullish signals and red lines for bearish signals. The main purpose of this indicator is to provide early warning of potential trend reversal areas.