Forex PPP Divergence Mapping Tool

Forex PPP Divergence Mapping Tool

This indicator applies a Purchasing Power Parity (PPP)–based Smart Money Technique (SMT) divergence framework to Forex pairs. It compares price action between mapped currency components on a higher timeframe, highlighting divergences where one leg of a pair creates a new high/low while the other does not.

How it works:
- The script automatically maps the selected Forex pair to its PPP-related components.
- For each higher timeframe candle, the tool checks if one component makes a new high or low while the other fails to confirm.

- When a divergence is detected, it is displayed on the chart with:
A line connecting divergence points.
A colored box marking the price range.
An optional label ("Divergence") above the signal.

How to use:
- Apply on Forex pairs that are supported by the PPP mapping logic.
- Use divergences as potential signals of inefficiencies or shifts in intermarket alignment.
- Combine with your own trade confirmation methods for entries or exits.

Customization:
- Enable or disable labels and boxes.
- Adjustable box transparency.
- Selectable higher timeframe for analysis (from intraday to monthly).

Alerts:
- Bullish PPP Divergence detected.
- Bearish PPP Divergence detected.

Notes:
- Works only on mapped Forex pairs (error message is displayed otherwise).