> ## Documentation Index
> Fetch the complete documentation index at: https://terminal.incrypto.ru/llms.txt
> Use this file to discover all available pages before exploring further.
# Orderflows Divergence
> Multi-factor divergence combining price action with order flow metrics.
Orderflows Divergence is a composite divergence indicator that analyzes multiple order flow dimensions simultaneously before generating a signal. Rather than relying on a single metric like delta or CVD, it examines the structural relationship between price extremes and the underlying order flow data, producing higher-conviction signals at the cost of lower frequency.
## How It Works
The indicator identifies structural price extremes (swing highs and swing lows) and then evaluates whether the underlying order flow metrics confirm or contradict the price move. A divergence is flagged only when price makes a new extreme but multiple order flow factors fail to support it.
### Multi-Factor Analysis
The algorithm evaluates several order flow dimensions at each price swing:
* **Delta trend**: Is the net delta at the new extreme weaker than at the previous extreme?
* **Volume characteristics**: Does the volume profile at the new swing suggest genuine participation or thin-liquidity overshoot?
* **Trade distribution**: Are the trades concentrated or dispersed across price levels?
* **Composite scoring**: All factors are combined into a single divergence score. Only when the composite score exceeds an internal threshold is the signal generated.
This multi-factor approach filters out the many false divergences that single-metric indicators produce, especially in choppy or range-bound markets.
## Signal Types
| Signal | Price Action | Order Flow | Interpretation |
| ---------------------- | ------------ | ----------------------------------------- | -------------------------------------------------------------------------------------------- |
| **Bearish divergence** | Higher high | Order flow metrics weaker at the new high | Rally is losing structural support. Multiple dimensions of buying pressure are declining. |
| **Bullish divergence** | Lower low | Order flow metrics weaker at the new low | Decline is losing structural support. Multiple dimensions of selling pressure are declining. |
Because multiple factors must align, Orderflows Divergence signals tend to appear at more significant turning points than single-metric divergences.
## Settings
### Detection Parameters
| Parameter | Description | Default |
| ----------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- |
| **lookbackPeriod** | Number of bars scanned for swing point detection. Larger values detect longer-term structural divergences. | 50 |
| **localExtremumPeriod** | Number of bars on each side required to confirm a swing high or low. Higher values demand more established price pivots. | 3 |
| **minDistanceBetweenSignals** | Minimum number of bars between two divergence signals. Prevents signal clustering in volatile conditions. | 5 |
| **minDistanceFromPreviousExtremum** | Minimum number of bars between two swing points used in a divergence comparison. Ensures the divergence spans a meaningful price structure. | 2 |
| **priceTolerancePct** | Price tolerance percentage for determining whether a new extreme exceeds the previous one. A value of 0.1 means price must exceed the prior swing by at least 0.1% to qualify as a new extreme. | 0.1 |
The `lookbackPeriod` of 50 bars (default) is intentionally larger than the default for Delta Divergence (20) or CVD Divergence (20). This reflects the structural nature of Orderflows Divergence -- it is designed to catch significant swing points, not minor fluctuations.
### Visual Settings
| Parameter | Description | Default |
| ----------------- | ---------------------------------------------------------------------------- | ------- |
| **showLines** | Draw connecting lines between the two swing points that form the divergence. | true |
| **lineThickness** | Width of the divergence connecting lines in pixels. | 1 |
| **symbolSize** | Size of the divergence marker symbol in pixels. | 10 |
| **bullishColor** | Color for bullish divergence markers and lines. | #22c55e |
| **bearishColor** | Color for bearish divergence markers and lines. | #ef4444 |
## Alert Rules
| Event | Fires When |
| ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ |
| **new\_divergence** | A new multi-factor divergence is confirmed. The alert includes the direction, the price level of both swing points, and the bar timestamp. |
Orderflows Divergence alerts fire less frequently than single-metric divergence alerts, making them suitable for notification-based workflows where you want to be alerted only to high-conviction setups.
## Comparison with Other Divergence Indicators
Cluster Terminal includes three divergence indicators. Each serves a different purpose:
| Aspect | Delta Divergence | CVD Divergence | Orderflows Divergence |
| ----------------------- | ----------------------------- | -------------------------- | ------------------------------------- |
| **Input** | Single candle delta vs. price | Cumulative delta vs. price | Multiple order flow factors vs. price |
| **Scope** | One bar | Multi-bar trend | Multi-bar structure |
| **Signal frequency** | High | Medium | Low |
| **False positive rate** | Higher | Medium | Lower |
| **Best for** | Tactical entry timing | Trend exhaustion | Structural turning points |
| **Confirmation delay** | Minimal | Moderate (fractal) | Moderate (extremum + multi-factor) |
### When to Use Which
* **Scalping**: Delta Divergence for quick entry signals at known levels.
* **Intraday swing**: CVD Divergence for identifying when intraday trends are losing steam.
* **Swing / position**: Orderflows Divergence for high-conviction structural reversals.
All three can be enabled simultaneously. When they all agree at the same price level, the confluence is exceptionally strong.
## Practical Usage
### Best Timeframes
| Timeframe | Suitability | Notes |
| ------------ | ----------- | ----------------------------------------------------------------------------- |
| **1m - 5m** | Moderate | Signals are rare due to multi-factor requirements. Use for confirmation only. |
| **15m - 1h** | Excellent | Ideal for intraday swing setups. Enough data for meaningful factor analysis. |
| **4h - 1d** | Excellent | Strong structural signals for multi-day position entries. |
### Confluence Setups
Orderflows Divergence produces the most reliable signals when it aligns with:
* **Established support/resistance**: Divergence at a level that has been tested multiple times adds order flow evidence to a proven price level.
* **Volume Profile POC / Value Area**: Divergence at the Point of Control or the boundary of the Value Area suggests that the market's fair value assessment is shifting.
* **Absorption Alpha**: When multi-factor divergence coincides with visible absorption at the swing point, institutional activity is confirmed from two independent angles.
* **Session levels**: Divergence at the previous session high, low, or close carries additional weight because these levels are widely watched by market participants.
### Parameter Tuning
* **Conservative (fewer signals, higher quality)**: Increase `lookbackPeriod` to 80, `localExtremumPeriod` to 5, and `minDistanceBetweenSignals` to 10. This configuration only fires at major structural turning points.
* **Moderate (balanced)**: Use defaults. Suitable for most intraday swing trading scenarios.
* **Aggressive (more signals)**: Reduce `lookbackPeriod` to 30, `localExtremumPeriod` to 2, and `minDistanceBetweenSignals` to 3. Produces more signals but with a higher noise ratio.
Orderflows Divergence is stronger than single-metric divergences because it requires agreement across multiple order flow dimensions. However, this also means it fires less often. Use it as a structural filter: when it signals, pay close attention. When it does not, rely on other indicators for tactical entries.