Divergence Detection Algorithm

The divergence signal calculation follows this logic:

Divergence Score = |Sentiment Score - Current Price|
Signal Strength = f(Divergence Score, Sentiment Volume, Historical Accuracy)

If Sentiment >> Price: BULLISH DIVERGENCE (Buy Signal)
If Sentiment << Price: BEARISH DIVERGENCE (Sell Signal)
If Sentiment ≈ Price: NEUTRAL (No Signal)

Key factors in signal generation:

• Magnitude: How large is the price-sentiment gap?

• Persistence: How long has the divergence existed?

• Volume: How many participants are expressing this sentiment?

• Quality: What is the average credibility of sentiment sources?