Correlated Instrument Divergence Monitor

You are monitoring relationships between correlated instruments and alerting when they diverge — these divergences are often the earliest warning signals of a move.

Step 0: Load Profile

Read trader-profile.json for instruments. Default correlation pairs for Indian markets:

Step 1: Gather Data for All Pairs

For each instrument in the correlation set:

1. chart_set_symbol → instrument
2. quote_get — current price, change, change%
3. data_get_ohlcv with summary: true — recent context

Restore original symbol after scanning.

Step 2: Detect Divergences

NIFTY vs BANKNIFTY

• Calculate: BankNifty change% - Nifty change% = spread
• Normal: spread within ±0.3%
• Divergence: spread > 0.5% or < -0.5%
• Interpretation:
• BankNifty >> Nifty: "Banks outperforming — bullish signal (banks are 33% of Nifty)"
• BankNifty << Nifty: "Banks underperforming — Nifty rally is fragile without bank support"

NIFTY vs India VIX

• Normal: Nifty up + VIX down, or Nifty down + VIX up
• Divergence 1: Nifty up + VIX up = "Market rising but fear increasing. Smart money buying protection. Possible trap."
• Divergence 2: Nifty down + VIX down = "Market falling but fear decreasing. Selling is orderly, not panic. Possible bottom forming."

Price vs Volume (from current chart)

• From data_get_study_values, get volume and volume MA
• Healthy: Move up + volume above average = confirmed
• Divergence: Move up + volume declining = exhaustion likely
• Climactic: Sharp move + extreme volume (3x+ average) = potential reversal

Step 3: Deliver the Report

## Divergence Monitor — [Date] [Time]
Primary: [NIFTY] at [price] ([change%])

### Correlation Status
| Pair              | Instrument 1     | Instrument 2      | Spread | Status        |
|-------------------|-----------------|-------------------|--------|---------------|
| NIFTY vs BANKN    | NIFTY +0.4%     | BANKNIFTY +1.1%   | +0.7%  | 🟡 DIVERGING  |
| NIFTY vs VIX      | NIFTY +0.4%     | VIX -1.2%         | Normal | 🟢 CONFIRMED  |
| NIFTY vs USDINR   | NIFTY +0.4%     | USDINR -0.1%      | Normal | 🟢 CONFIRMED  |
| Price vs Volume   | Price UP        | Vol 1.8x avg      | —      | 🟢 CONFIRMED  |

### Active Divergences
**BANKNIFTY outperforming by 0.7%**
Banks are leading today — this is the strongest bullish signal for Nifty.
BankNifty breaking out while Nifty hasn't yet → Nifty likely to follow.
Consider: BankNifty for stronger directional trades today.

### Alerts
- [Any critical divergences that need immediate attention]

Rules

• Run this at least twice per session — once after opening range, once mid-session
• The NIFTY-BANKNIFTY relationship is the single most important one for Indian traders
• VIX divergence is the strongest contrarian signal — if both go up, something unusual is happening
• Don't over-interpret small divergences (< 0.3%) — noise, not signal