A new slope-based divergence concept under testing in the latest version of The Oracle
We are currently testing a new concept in the latest version of The Oracle called VCD = Vector Consensus Divergence. In short, VCD is an attempt to rethink classical divergence in a more structural way.
Instead of comparing:
- price pivots
- vs a single oscillator pivot
- the slope of price
- against the slope of internal consensus
This is interesting because classical divergence is structurally tied to pivot confirmation, which always requires future bars.
That usually means a trade-off between:
- more confirmation = more lag
- less confirmation = more repaint risk
A better description would be:
an early warning of trend fatigue / consensus erosion.
There is a substantial amount of scientific and quantitative research behind this concept, and for anyone interested in the theoretical side, a whitepaper is attached below for deeper reading. At the moment this is only being tested in the newest Oracle build.
Question for you guys:
Would there be interest in exploring the same VCD logic on more standard tools as well, such as RSI, MACD, CCI, or Stochastic?
For example, one possible extension would be to apply the same logic to a multi-period RSI stack rather than a single RSI line:
RSI(5), RSI(14), RSI(21), RSI(34)
In that case, divergence would no longer mean simply:
"price makes a higher high while RSI makes a lower high"
It could instead mean:
"price is still extending, while the internal RSI slope consensus is already weakening across multiple speeds"
That would make the concept more structural and less dependent on a single lookback setting.
If there is interest, we can share more charts and research notes.
+C+