This code snippet demonstrates how to detect divergences between a momentum indicator (like RSI) and price movements in a trading chart using the ProBuilder programming language. Divergences can be a significant indicator in technical analysis, suggesting potential reversals or continuation of trends.

defparam calculateonlastbars=500
//N = 29
//a = 14
//b = 5
//c = 0
// DRSI = Momentum[a](close)
cero = 0
////Searching for swing highs or lows
IF (BarIndex > 10+N) THEN
    IF (DRSI[1]>DRSI AND DRSI[1]>highest[b](DRSI[2])) THEN
        RSISwingHigh=DRSI[1]
        RSIPreviousSwingHigh=highest[N](DRSI)
        PriceSwingHigh=close[1]
        PricePreviousSwingHigh=Highest[N](close)
    ENDIF
    IF (DRSI[1](PricePreviousSwingHigh[1]*(1+(c/100)))) THEN
        signal = -1
    ELSE
        signal = 0
    ENDIF
    IF(RSISwingLow>RSIPreviousSwingLow AND PriceSwingLow<(PricePreviousSwingLow[1]*(1-(c/100)))) THEN
        signal = 1
    ENDIF
ENDIF
Return cero as "0", signal as "Divergence"

Explanation of the Code:

• The code starts by setting up the environment to calculate only on the last 500 bars for efficiency.
• Variables N, a, b, and c are parameters that define the look-back period for divergence detection, the period for the momentum calculation, the number of bars to check for swing highs/lows, and the percentage change in price needed to confirm a divergence, respectively.
• The main logic begins by checking for swing highs and lows in the momentum indicator (DRSI). This is done by comparing the current value with previous values to find local maxima and minima.
• Once potential swings are identified, the code checks for divergences. A bearish divergence is flagged if the momentum indicator makes a lower high while the price makes a higher high. Conversely, a bullish divergence is flagged if the momentum indicator makes a higher low while the price makes a lower low.
• The result is stored in the variable signal, where 1 indicates a bullish divergence, -1 indicates a bearish divergence, and 0 indicates no divergence.
• The function returns two values: a constant zero and the signal variable, which indicates the type of divergence detected.

This code is a practical example of how to implement technical analysis techniques in algorithmic trading using ProBuilder.