Market-Wide Divergence Scanner and Ranking

Install and import#

bash

npm install fintech-algorithms

import { marketWideDivergenceScannerAndRanking } from "fintech-algorithms/geometric-chart-patterns/indicator-divergence-detection/market-wide-divergence-scanner-and-ranking";

Signature#

marketWideDivergenceScannerAndRanking(payload)

Filters point-in-time eligible universe records and ranks them from explicit confluence, state, freshness, liquidity, and data-quality components.

Parameters#

Name	Type	Notes
`payload`	{ topic_id: string; data_class: string; as_of: string; bars: { timestamp: string; open: number; high: number; low: number; close: number; finalized: boolean }[]; price_pivots: { kind: string; event_index: number; confirmation_index: number; price: number; prominence: number }[]; indicators: { name: string; family: string; polarity: number; scale: number; pivots: { kind: string; event_index: number; confirmation_index: number; value: number; prominence: number }[] }[]; parameters: { max_lag: number; min_separation: number; max_separation: number; min_price_fraction: number; min_indicator_delta: number; confirmation_horizon: number; invalidation_buffer: number; minimum_indicators: number }; weights: { RSI: number; MACD-Histogram: number; Stochastic-K: number }; as_of_index: number; universe: { symbol: string; state: string; divergence_type: string; confluence_score: number; freshness: number; liquidity: number; data_quality: number; available_index: number; eligible: boolean }[] }	Topic payload containing `universe` records and an `as_of_index` or bars from which that index can be derived.

Returns#

{ topic_id, state, ranking, eligible_count }

One scanner record with state equal to ranked or empty; each eligible row has a stable rank and component trace.

Errors#

When as-of index, universe score, availability, or scanner-state input is invalid — throws

Complexity: time , space .

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

payload

{
  "topic_id": "D08-F05-A08",
  "data_class": "synthetic-teaching",
  "as_of": "2026-01-08T13:30:00Z",
  "bars": [
    {
      "timestamp": "2026-01-05T14:30:00Z",
      "open": 105.75,
      "high": 107,
      "low": 105,
      "close": 106,
      "finalized": true
    },
    {
      "timestamp": "2026-01-05T15:30:00Z",
      "open": 106.112,
      "high": 107.362,
      "low": 105.362,
      "close": 106.362,
      "finalized": true
    },
    {
      "timestamp": "2026-01-05T16:30:00Z",
      "open": 106.4614,
      "high": 107.7114,
      "low": 105.7114,
      "close": 106.7114,
      "finalized": true
    }
  ],
  "price_pivots": [
    {
      "kind": "low",
      "event_index": 18,
      "confirmation_index": 21,
      "price": 98,
      "prominence": 0.72
    },
    {
      "kind": "low",
      "event_index": 42,
      "confirmation_index": 45,
      "price": 94,
      "prominence": 0.84
    }
  ],
  "indicators": [
    {
      "name": "RSI",
      "family": "bounded-momentum",
      "polarity": 1,
      "scale": 100,
      "pivots": [
        {
          "kind": "low",
          "event_index": 19,
          "confirmation_index": 22,
          "value": 28,
          "prominence": 0.76
        },
        {
          "kind": "low",
          "event_index": 41,
          "confirmation_index": 44,
          "value": 36,
          "prominence": 0.86
        }
      ]
    },
    {
      "name": "MACD-Histogram",
      "family": "moving-average-momentum",
      "polarity": 1,
      "scale": 5,
      "pivots": [
        {
          "kind": "low",
          "event_index": 18,
          "confirmation_index": 21,
          "value": -2.2,
          "prominence": 0.7
        },
        {
          "kind": "low",
          "event_index": 42,
          "confirmation_index": 45,
          "value": -1,
          "prominence": 0.81
        }
      ]
    },
    {
      "name": "Stochastic-K",
      "family": "range-momentum",
      "polarity": 1,
      "scale": 100,
      "pivots": [
        {
          "kind": "low",
          "event_index": 17,
          "confirmation_index": 20,
          "value": 18,
          "prominence": 0.68
        },
        {
          "kind": "low",
          "event_index": 43,
          "confirmation_index": 46,
          "value": 29,
          "prominence": 0.78
        }
      ]
    }
  ],
  "parameters": {
    "max_lag": 3,
    "min_separation": 5,
    "max_separation": 40,
    "min_price_fraction": 0.005,
    "min_indicator_delta": 0.05,
    "confirmation_horizon": 12,
    "invalidation_buffer": 0.005,
    "minimum_indicators": 2
  },
  "weights": {
    "RSI": 0.4,
    "MACD-Histogram": 0.35,
    "Stochastic-K": 0.25
  },
  "as_of_index": 71,
  "universe": [
    {
      "symbol": "SYNTH-A",
      "state": "confirmed",
      "divergence_type": "regular-bullish",
      "confluence_score": 86,
      "freshness": 92,
      "liquidity": 80,
      "data_quality": 98,
      "available_index": 47,
      "eligible": true
    },
    {
      "symbol": "SYNTH-B",
      "state": "candidate",
      "divergence_type": "regular-bearish",
      "confluence_score": 91,
      "freshness": 98,
      "liquidity": 72,
      "data_quality": 94,
      "available_index": 54,
      "eligible": true
    },
    {
      "symbol": "SYNTH-C",
      "state": "confirmed",
      "divergence_type": "hidden-bullish",
      "confluence_score": 74,
      "freshness": 70,
      "liquidity": 96,
      "data_quality": 90,
      "available_index": 39,
      "eligible": true
    }
  ]
}

Call#

marketWideDivergenceScannerAndRanking(payload)

Returns#

object with 4 fields: topic_id, state, ranking, eligible_count

{
  "topic_id": "D08-F05-A08",
  "state": "ranked",
  "ranking": [
    {
      "symbol": "SYNTH-A",
      "state": "confirmed",
      "divergence_type": "regular-bullish",
      "rank_score": 89.3,
      "components": {
        "confluence_score": 86,
        "freshness": 92,
        "liquidity": 80,
        "data_quality": 98
      },
      "as_of_index": 71,
      "interpretation": "deterministic triage priority; not an order or return forecast",
      "rank": 1
    },
    {
      "symbol": "SYNTH-B",
      "state": "candidate",
      "divergence_type": "regular-bearish",
      "rank_score": 86.95,
      "components": {
        "confluence_score": 91,
        "freshness": 98,
        "liquidity": 72,
        "data_quality": 94
      },
      "as_of_index": 71,
      "interpretation": "deterministic triage priority; not an order or return forecast",
      "rank": 2
    },
    {
      "symbol": "SYNTH-C",
      "state": "confirmed",
      "divergence_type": "hidden-bullish",
      "rank_score": 81.3,
      "components": {
        "confluence_score": 74,
        "freshness": 70,
        "liquidity": 96,
        "data_quality": 90
      },
      "as_of_index": 71,
      "interpretation": "deterministic triage priority; not an order or return forecast",
      "rank": 3
    }
  ],
  "eligible_count": 4
}

Other exports#

This module also exports adaptIndicator, alignPivots, detectDivergences, scoreDivergence, advanceState, combineConfluence, rankUniverse, runTopic, priceIndicatorPivotAlignment, regularBullishBearishDivergenceDetection, hiddenBullishBearishDivergenceDetection, multiIndicatorDivergenceAdapters, divergenceStrengthAndQualityScoring, divergenceConfirmationAndInvalidationStateMachine, multiIndicatorDivergenceConfluence. Every module additionally exports run as an alias of its primary function, and a meta object carrying its catalog id, domain, family, shape and article URL.

Diagrams#

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

TradingView — RSI divergence indicator — TradingView
TradingView — MACD indicator — TradingView
TradingView Pine Script — Repainting — TradingView Pine Script
TradingView Pine Script — Visuals FAQ — TradingView Pine Script
Fidelity — Relative Strength Index — Fidelity
Fidelity — MACD — Fidelity
TA-Lib — Function index — TA-Lib
TA-Lib — RSI — TA-Lib
SciPy — find_peaks — SciPy
Bailey et al. — Effects of Backtest Overfitting — Bailey et al.
Historical-example decision
Topic-specific applicability map

Market-Wide Divergence Scanner and Ranking

Install and import#

Signature#

Parameters#

Returns#

Errors#

Worked example#

Input#

Call#

Returns#

Other exports#

Diagrams#

How it works#

References#

The rest of the Indicator Divergence Detection family#