Multiple RSITitle: MultiRSI: A Versatile Multi-Timeframe RSI Indicator
Short Description:
A powerful RSI-based indicator that incorporates three RSI lengths (Fast, Medium, and Slow) to help traders analyze trends, momentum, and potential reversals with clear visual signals.
Full Description:
Overview:
The MultiRSI script provides traders with a dynamic tool to assess market conditions across multiple RSI timeframes. It calculates Fast, Medium, and Slow RSI values, assigns meaningful colors based on trend analysis, and highlights key crossover points for actionable insights.
Key Features:
Triple RSI Display:
Fast RSI (default: 8): Ideal for capturing short-term momentum.
Medium RSI (default: 12): Provides a balanced perspective.
Slow RSI (default: 16): Helps identify longer-term trends.
Trend Analysis:
Color-coded RSI lines:
Green, blue, and aqua for uptrends.
Yellow, orange, and red for potential downtrends.
Visual differentiation for easy interpretation.
Crossover Signals:
Upward Cross (triangle up): Indicates potential bullish momentum.
Downward Cross (triangle down): Suggests possible bearish momentum.
Marked directly on the chart for clarity.
Customizable Inputs:
Adjust RSI lengths to suit your trading strategy.
Grouped input settings for a seamless configuration experience.
Usage Scenarios:
Identify trend strength and reversals in different timeframes.
Spot key momentum shifts with crossover signals.
Combine with other indicators for a comprehensive trading strategy.
How It Works:
The script compares the Fast RSI against the Medium RSI and the Medium RSI against the Slow RSI to determine short-, medium-, and long-term trends. Crossovers between Medium and Slow RSI values signal potential momentum shifts.
Visualization:
Clear, color-coded plots for the three RSI levels.
Highlighted crossovers for quick decision-making.
License:
This script is open-source under the Mozilla Public License 2.0. Feel free to use, modify, and share!
Índice de fuerza relativa (RSI)
RSI + MA Strategy DTISimpel RSI + MA strategy Uitleg:
RSI Instellingen: De rsiPeriod is ingesteld op 14, en de overbought en oversold niveaus zijn respectievelijk 70 en 30.
Moving Averages: De EMA wordt berekend met een periode van 9 en de SMA met een periode van 50. Deze worden gebruikt om de trend te identificeren.
Koopconditie: De strategie opent een long positie wanneer de RSI onder de 30 (oversold) is en de EMA de SMA van onder naar boven kruist.
Verkoopconditie: De strategie opent een short positie wanneer de RSI boven de 70 (overbought) is en de EMA de SMA van boven naar beneden kruist.
Visualisatie: De RSI en de twee Moving Averages worden op de grafiek weergegeven voor een visuele inspectie.
Wat je kunt aanpassen:
RSI Periode: Als je de gevoeligheid van de RSI wilt aanpassen, kun je de rsiPeriod veranderen.
Moving Averages: De periodes van de EMA en SMA kunnen aangepast worden om andere trends te identificeren.
Overbought/Oversold Niveaus: De niveaus van RSI kunnen ook aangepast worden afhankelijk van je voorkeur voor wat je als overbought/oversold beschouwt.
Wat je kunt toevoegen:
Stop loss / Take profit: Je kunt ook stop loss- en take profit-niveaus toevoegen op basis van percentage of prijsdoelen.
Meer filters: Je kunt andere indicatoren toevoegen zoals volume, Bollinger Bands of zelfs een combinatie van meerdere RSI periodes om de nauwkeurigheid van je signalen te verbeteren.
RSI on Price Indicator Advanced Multi-Level RSIRSI on Price Indicator | Advanced Multi-Level RSI with Customizable Levels & Background Fill (Free Pine Script for TradingView)
Unlock the full potential of your TradingView charts with the 'RSI on Price NEW' indicator. This free Pine Script offers multi-level RSI bands, customizable overbought/oversold levels, and eye-catching background fills. Perfect for intraday, daily, weekly, or monthly analysis. Enhance your trading strategy today!
Take your trading analysis to the next level with the 'RSI on Price NEW' indicator for TradingView. This powerful and free Pine Script overlay brings the RSI directly onto your price chart, combining multiple levels of RSI calculations for detailed insights. With fully customizable settings for RSI periods, overbought/oversold thresholds, and dynamic color-coded background fills, this script is perfect for traders who want precision and clarity. Whether you're trading intraday, daily, weekly, or monthly charts, this script offers unparalleled versatility. Optimize your trading strategy today with this innovative RSI tool!
Black Line 50 RSI in center
above that 3 line is 60, 70, 80
below black line is 40, 30, 20 RSI
RSI Instant DivergenceThis script detects RSI divergence—a common signal indicating potential trend reversals. It compares price action and RSI behavior to identify two types of divergences:
1- Bearish Divergence (Sell Signal):
Occurs when the price forms a higher high while RSI drops (weaker momentum).
A label appears above the candle, and an alert is triggered: "Divergence: Sell Signal."
2 -Bullish Divergence (Buy Signal):
Occurs when the price makes a lower low while RSI rises (stronger momentum).
A label appears below the candle, and an alert is triggered: "Divergence: Buy Signal."
The labels are color-coded (orange for sell, blue for buy) and include detailed RSI and price info in a tooltip. Alerts help you act immediately when divergence is detected.
This tool is perfect for spotting potential trend reversals and refining your entry/exit strategy. Let me know if you'd like to customize it further! 😊
Tooltip Feature: Each label includes a tooltip with precise RSI and price details (current and previous values) as well as the percentage change in RSI, giving you deeper insight into the divergence. This tool is great for identifying trend reversal points and includes visual labels, tooltips, and alerts to make real-time trading decisions easier. Let me know if you’d like adjustments!
Fixed RSI Overlay [lognomics]This overlay indicator provides a dynamic visualization of the RSI on the instrument price chart. It enhances the standard RSI oscillator by scaling it relative to the anchor's maximum & minimum range, conceptualizing how price reacts at standard oscillation levels.
Starting at the anchor's open, the tool collects all the RSI values from each candle within the range, and stores them inside an array corresponding to each candle index. It then pulls relative values and plots a line connecting each point accordingly to the 0-100 range scale.
While determining each maximum and/or minimum the script will plot a box from the opening time of the anchor, encapsulating the high & low of the range, to end at the next anchor time. To the right to of the box, a label is plotted which is pushed to the current time & current RSI y value within the fixed scale.
Machine Learning RSI [BackQuant]Machine Learning RSI
The Machine Learning RSI is a cutting-edge trading indicator that combines the power of Relative Strength Index (RSI) with Machine Learning (ML) clustering techniques to dynamically determine overbought and oversold thresholds. This advanced indicator adapts to market conditions in real-time, offering traders a robust tool for identifying optimal entry and exit points with increased precision.
Core Concept: Relative Strength Index (RSI)
The RSI is a well-known momentum oscillator that measures the speed and change of price movements, oscillating between 0 and 100. Typically, RSI values above 70 are considered overbought, and values below 30 are considered oversold. However, static thresholds may not be effective in all market conditions.
This script enhances the RSI by integrating a dynamic thresholding system powered by Machine Learning clustering, allowing it to adapt thresholds based on historical RSI behavior and market context.
Machine Learning Clustering for Dynamic Thresholds
The Machine Learning (ML) component uses clustering to calculate dynamic thresholds for overbought and oversold levels. Instead of relying on fixed RSI levels, this indicator clusters historical RSI values into three groups using a percentile-based initialization and iterative optimization:
Cluster 1: Represents lower RSI values (typically associated with oversold conditions).
Cluster 2: Represents mid-range RSI values.
Cluster 3: Represents higher RSI values (typically associated with overbought conditions).
Dynamic thresholds are determined as follows:
Long Threshold: The upper centroid value of Cluster 3.
Short Threshold: The lower centroid value of Cluster 1.
This approach ensures that the indicator adapts to the current market regime, providing more accurate signals in volatile or trending conditions.
Smoothing Options for RSI
To further enhance the effectiveness of the RSI, this script allows traders to apply various smoothing methods to the RSI calculation, including:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Weighted Moving Average (WMA)
Hull Moving Average (HMA)
Linear Regression (LINREG)
Double Exponential Moving Average (DEMA)
Triple Exponential Moving Average (TEMA)
Adaptive Linear Moving Average (ALMA)
T3 Moving Average
Traders can select their preferred smoothing method and adjust the smoothing period to suit their trading style and market conditions. The option to smooth the RSI reduces noise and makes the indicator more reliable for detecting trends and reversals.
Long and Short Signals
The indicator generates long and short signals based on the relationship between the RSI value and the dynamic thresholds:
Long Signals: Triggered when the RSI crosses above the long threshold, signaling bullish momentum.
Short Signals: Triggered when the RSI falls below the short threshold, signaling bearish momentum.
These signals are dynamically adjusted to reflect real-time market conditions, making them more robust than static RSI signals.
Visualization and Clustering Insights
The Machine Learning RSI provides an intuitive and visually rich interface, including:
RSI Line: Plotted in real-time, color-coded based on its position relative to the dynamic thresholds (green for long, red for short, gray for neutral).
Dynamic Threshold Lines: The script plots the long and short thresholds calculated by the ML clustering process, providing a clear visual reference for overbought and oversold levels.
Cluster Plots: Each RSI cluster is displayed with distinct colors (green, orange, and red) to give traders insights into how RSI values are grouped and how the dynamic thresholds are derived.
Customization Options
The Machine Learning RSI is highly customizable, allowing traders to tailor the indicator to their preferences:
RSI Settings : Adjust the RSI length, source price, and smoothing method to match your trading strategy.
Threshold Settings : Define the range and step size for clustering thresholds, allowing you to fine-tune the clustering process.
Optimization Settings : Control the performance memory, maximum clustering steps, and maximum data points for ML calculations to ensure optimal performance.
UI Settings : Customize the appearance of the RSI plot, dynamic thresholds, and cluster plots. Traders can also enable or disable candle coloring based on trend direction.
Alerts and Automation
To assist traders in staying on top of market movements, the script includes alert conditions for key events:
Long Signal: When the RSI crosses above the long threshold.
Short Signal: When the RSI crosses below the short threshold.
These alerts can be configured to notify traders in real-time, enabling timely decisions without constant chart monitoring.
Trading Applications
The Machine Learning RSI is versatile and can be applied to various trading strategies, including:
Trend Following: By dynamically adjusting thresholds, this indicator is effective in identifying and following trends in real-time.
Reversal Trading: The ML clustering process helps identify extreme RSI levels, offering reliable signals for reversals.
Range-Bound Trading: The dynamic thresholds adapt to market conditions, making the indicator suitable for trading in sideways markets where static thresholds often fail.
Final Thoughts
The Machine Learning RSI represents a significant advancement in RSI-based trading indicators. By integrating Machine Learning clustering techniques, this script overcomes the limitations of static thresholds, providing dynamic, adaptive signals that respond to market conditions in real-time. With its robust visualization, customizable settings, and alert capabilities, this indicator is a powerful tool for traders seeking to enhance their momentum analysis and improve decision-making.
As always, thorough backtesting and integration into a broader trading strategy are recommended to maximize the effectiveness!
NASI +The NASI + indicator is an advanced adaptation of the classic McClellan Oscillator, a tool widely used to gauge market breadth. It calculates the McClellan Oscillator by measuring the difference between the 19-day and 39-day EMAs of net advancing issues, which are optionally adjusted to account for the relative strength of advancing vs. declining stocks.
To enhance this analysis, NASI + applies the Relative Strength Index (RSI) to the cumulative McClellan Oscillator values, generating a unique momentum-based view of market breadth. Additionally, two extra EMAs—a 10-day and a 4-day EMA—are applied to the RSI, providing further refinement to signals for overbought and oversold conditions.
With NASI +, users benefit from:
-A deeper analysis of market momentum through cumulative breadth data.
-Enhanced sensitivity to trend shifts with the applied RSI and dual EMAs.
-Clear visual cues for overbought and oversold conditions, aiding in intuitive signal identification.
MACD+RSI+BBDESCRIPTION
The MACD + RSI + Bollinger Bands Indicator is a comprehensive technical analysis tool designed for traders and investors to identify potential market trends and reversals. This script combines three indicators: the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and Bollinger Bands. Each of these indicators provides unique insights into market behavior.
FEATURES
MACD (Moving Average Convergence Divergence)
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
The script calculates the MACD line, the signal line, and the histogram, which visually represents the difference between the MACD line and the signal line.
RSI (Relative Strength Index)
The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions.
The script allows users to set custom upper and lower thresholds for the RSI, with default values of 70 and 30, respectively.
Bollinger Bands
Bollinger Bands consist of a middle band (EMA) and two outer bands (standard deviations away from the EMA). They help traders identify volatility and potential price reversals.
The script allows users to customize the length of the Bollinger Bands and the multiplier for the standard deviation.
Color-Coding Logic
The histogram color changes based on the following conditions:
Black: If the RSI is above the upper threshold and the closing price is above the upper Bollinger Band, or if the RSI is below the lower threshold and the closing price is below the lower Bollinger Band.
Green (#4caf50): If the RSI is above the upper threshold but the closing price is not above the upper Bollinger Band.
Light Green (#a5d6a7): If the histogram is positive and the RSI is not above the upper threshold.
Red (#f23645): If the RSI is below the lower threshold but the closing price is not below the lower Bollinger Band.
Light Red (#faa1a4): If the histogram is negative and the RSI is not below the lower threshold.
Inputs
Bollinger Bands Settings
Length: The number of periods for the moving average.
Basis MA Type: The type of moving average (SMA, EMA, SMMA, WMA, VWMA).
Source: The price source for the Bollinger Bands calculation.
StdDev: The multiplier for the standard deviation.
RSI Settings
RSI Length: The number of periods for the RSI calculation.
RSI Upper: The upper threshold for the RSI.
RSI Lower: The lower threshold for the RSI.
Source: The price source for the RSI calculation.
MACD Settings
Fast Length: The length for the fast moving average.
Slow Length: The length for the slow moving average.
Signal Smoothing: The length for the signal line smoothing.
Oscillator MA Type: The type of moving average for the MACD calculation.
Signal Line MA Type: The type of moving average for the signal line.
Usage
This indicator is suitable for various trading strategies, including day trading, swing trading, and long-term investing.
Traders can use the MACD histogram to identify potential buy and sell signals, while the RSI can help confirm overbought or oversold conditions.
The Bollinger Bands provide context for price volatility and potential breakout or reversal points.
Example:
From the example, it can clearly see that the Selling Climax and Buying Climax, marked as orange circle when a black histogram occurs.
Conclusion
The MACD + RSI + Bollinger Bands Indicator is a versatile tool that combines multiple technical analysis methods to provide traders with a comprehensive view of market conditions. By utilizing this script, traders can enhance their analysis and improve their decision-making process.
Alex JMA RSX Clone with Price & Divergence [LazyBear]Indicator Description:
RSX Indicator (RSXC_LB): This script is based on a clone of the JMA RSX (Relative Strength Index clone by LazyBear). It is a momentum-based indicator that helps identify overbought and oversold levels, as well as potential trend reversals.
Functional Changes:
Convergence is now marked with a white line on the RSX plot.
Bullish Divergence is marked with a green line, indicating potential upward movement.
Bearish Divergence is marked with a red line, indicating potential downward movement.
The default state is marked with a blue line.
Strong Divergences (both bullish and bearish) are highlighted with triangle markers on the chart.
Updated Features:
The script now visualizes convergence and divergence more clearly using distinct colors:
White: Convergence (indicates potential trend strength).
Green: Bullish divergence (possible price increase).
Red: Bearish divergence (possible price decrease).
Blue: Neutral/default state.
Triangle markers indicate strong divergences, making it easier for the user to spot critical moments.
This visual enhancement aims to provide clearer and more intuitive signals for traders using the RSX indicator, helping them identify trend changes and reversals more effectively.
Depth Trend Indicator - RSIDepth Trend Indicator - RSI
This indicator is designed to identify trends and gauge pullback strength by combining the power of RSI and moving averages with a depth-weighted calculation. The script was created by me, Nathan Farmer and is based on a multi-step process to determine trend strength and direction, adjusted by a "depth" factor for more accurate signal analysis.
How It Works
Trend Definition Using RSI: The RSI Moving Average ( rsiMa ) is calculated to assess the current trend, using customizable parameters for the RSI Period and MA Period .
Trends are defined as follows:
Uptrend : RSI MA > Critical RSI Value
Downtrend : RSI MA < Critical RSI Value
Pullback Depth Calculation: To measure pullback strength relative to the current trend, the indicator calculates a Depth Percentage . This is defined as the portion of the gap between the moving average and the price covered by a pullback.
Depth-Weighted RSI Calculation: The Depth Percentage is then applied as a weighting factor on the RSI Moving Average , giving us a Weighted RSI line that adjusts to the depth of pullbacks. This line is rather noisy, and as such we take a moving average to smooth out some of the noise.
Key Parameters
RSI Period : The period for RSI calculation.
MA Period : The moving average period applied to RSI.
Price MA Period : Determines the SMA period for price, used to calculate pullback depth.
Smoothing Length : Length of smoothing applied to the weighted RSI, creating a more stable signal.
RSI Critical Value : The critical value (level) used in determining whether we're in an uptrend or a downtrend.
Depth Critical Value : The critical value (level) used in determining whether or not the depth weighted value confirms the state of a trend.
Notes:
As always, backtest this indicator and modify the parameters as needed for your specific asset, over your specific timeframe. I chose these defaults as they worked well on the assets I look at, but it is likely you tend to look at a different group of assets over a different timeframe than what I do.
Large pullbacks can create large downward spikes in the weighted line. This isn't graphically pleasing, but I have tested it with various methods of normalization and smoothing and found the simple smoothing used in the indicator to be best despite this.
Dynamic RSI Mean Reversion StrategyDynamic RSI Mean Reversion Strategy
Overview:
This strategy uses an RSI with ATR-Adjusted OB/OS levels in order to enhance the quality of it's mean reversion trades. It also incorporates a form of trend filtering in an effort to minimize downside and maximize upside. The backtest has fewer trades, as it uses substantial filtering to enhance trade quality. As you can see, I didn't cherry pick the results, so the results aren't the most beautiful thing you'll see in your life. I did this to ensure nobody gets misled. If you need a higher frequency of trades, consider removing the trend filter or increasing the length of the EMAs used for trend detection.
Features:
Dynamic OB/OS Levels: Uses ATR to adjust overbought and oversold thresholds dynamically, making the RSI more responsive in varying volatility conditions. This approach enhances signal strength by expanding the RSI range in high volatility and tightening it in low volatility.
Mean Reversion Focus: Designed for mean reversion but incorporates a trend-following filter to reduce countertrend trades. When the RSI is high, it often indicates an uptrend, so a trend filter prevents shorting in these cases and the same goes for downtrends and longing.
Trend Filtering: A moving average cross trend filter checks for the trend direction, with the RSI signal line color-coded to reflect trend shifts. Entries occur when the RSI crosses above or below the dynamic thresholds and is not a countertrend trade.
Stop Losses: Stop losses are set based on ATR distance from the entry price, providing volatility-adjusted protection.
Note:
If you're using this strategy on assets with a higher price, remember to increase the initial capital in the strategy settings. Otherwise, the strategy won't generate any (or many) trades and you'll end up with some inaccurate results.
Recommended Use:
Test it on different assets and timeframes. I’ve found the best results with standard RSI inputs, a relatively slow ATR, and a slower MA cross for trend filtering. Thus, the defaults are set that way. If the trend metrics are too slow, you’ll filter out too many good trades while allowing crummy ones; if too fast, most trades may be filtered out. As always, this has a lot of configurability so experiment to find the balance that works for your trading style.
Stoch RSI and RSI Buy/Sell Signals with MACD Trend FilterDescription of the Indicator
This Pine Script is designed to provide traders with buy and sell signals based on the combination of Stochastic RSI, RSI, and MACD indicators, enhanced by the confirmation of candle colors. The primary goal is to facilitate informed trading decisions in various market conditions by utilizing different indicators and their interactions. The script allows customization of various parameters, providing flexibility for traders to adapt it to their specific trading styles.
Usefulness
This indicator is not just a mashup of existing indicators; it integrates the functionality of multiple momentum and trend-detection methods into a cohesive trading tool. The combination of Stochastic RSI, RSI, and MACD offers a well-rounded approach to analyzing market conditions, allowing traders to identify entry and exit points effectively. The inclusion of color-coded signals (strong vs. weak) further enhances its utility by providing visual cues about the strength of the signals.
How to Use This Indicator
Input Settings: Adjust the parameters for the Stochastic RSI, RSI, and MACD to fit your trading style. Set the overbought/oversold levels according to your risk tolerance.
Signal Colors:
Strong Buy Signal: Indicated by a green label and confirmed by a green candle (close > open).
Weak Buy Signal: Indicated by a blue label and confirmed by a green candle (close > open).
Strong Sell Signal: Indicated by a red label and confirmed by a red candle (close < open).
Weak Sell Signal: Indicated by an orange label and confirmed by a red candle (close < open).
Example Trading Strategy Using This Indicator
To effectively use this indicator as part of your trading strategy, follow these detailed steps:
Setup:
Timeframe : Select a timeframe that aligns with your trading style (e.g., 15-minute for intraday, 1-hour for swing trading, or daily for longer-term positions).
Indicator Settings : Customize the Stochastic RSI, RSI, and MACD parameters to suit your trading approach. Adjust overbought/oversold levels to match your risk tolerance.
Strategy:
1. Strong Buy Entry Criteria :
Wait for a strong buy signal (green label) when the RSI is at or below the oversold level (e.g., ≤ 35), indicating a deeply oversold market. Confirm that the MACD shows a decreasing trend (bearish momentum weakening) to validate a potential reversal. Ensure the current candle is green (close > open) if candle color confirmation is enabled.
Example Use : On a 1-hour chart, if the RSI drops below 35, MACD shows three consecutive bars of decreasing negative momentum, and a green candle forms, enter a buy position. This setup signals a robust entry with strong momentum backing it.
2. Weak Buy Entry Criteria :
Monitor for weak buy signals (blue label) when RSI is above the oversold level but still below the neutral (e.g., between 36 and 50). This indicates a market recovering from an oversold state but not fully reversing yet. These signals can be used for early entries with additional confirmations, such as support levels or higher timeframe trends.
Example Use : On the same 1-hour chart, if RSI is at 45, the MACD shows momentum stabilizing (not necessarily negative), and a green candle appears, consider a partial or cautious entry. Use this as an early warning for a potential bullish move, especially when higher timeframe indicators align.
3. Strong Sell Entry Criteria :
Look for a strong sell signal (red label) when RSI is at or above the overbought level (e.g., ≥ 65), signaling a strong overbought condition. The MACD should show three consecutive bars of increasing positive momentum to indicate that the bullish trend is weakening. Ensure the current candle is red (close < open) if candle color confirmation is enabled.
Example Use : If RSI reaches 70, MACD shows increasing momentum that starts to level off, and a red candle forms on a 1-hour chart, initiate a short position with a stop loss set above recent resistance. This is a high-confidence signal for potential price reversal or pullback.
4. Weak Sell Entry Criteria :
Use weak sell signals (orange label) when RSI is between the neutral and overbought levels (e.g., between 50 and 64). These can indicate potential short opportunities that might not yet be fully mature but are worth monitoring. Look for other confirmations like resistance levels or trendline touches to strengthen the signal.
Example Use : If RSI reads 60 on a 1-hour chart, and the MACD shows slight positive momentum with signs of slowing down, place a cautious sell position or scale out of existing long positions. This setup allows you to prepare for a possible downtrend.
Trade Management:
Stop Loss : For buy trades, place stop losses below recent swing lows. For sell trades, set stops above recent swing highs to manage risk effectively.
Take Profit : Target nearby resistance or support levels, apply risk-to-reward ratios (e.g., 1:2), or use trailing stops to lock in profits as price moves in your favor.
Confirmation : Align these signals with broader trends on higher timeframes. For example, if you receive a weak buy signal on a 15-minute chart, check the 1-hour or daily chart to ensure the overall trend is not bearish.
Real-World Example: Imagine trading on a 15-minute chart :
For a buy:
A strong buy signal (green) appears when the RSI dips to 32, MACD shows declining bearish momentum, and a green candle forms. Enter a buy position with a stop loss below the most recent support level.
Alternatively, a weak buy signal (blue) appears when RSI is at 47. Use this as a signal to start monitoring the market closely or enter a smaller position if other indicators (like support and volume analysis) align.
For a sell:
A strong sell signal (red) with RSI at 72 and a red candle signals to short with conviction. Place your stop loss just above the last peak.
A weak sell signal (orange) with RSI at 62 might prompt caution but can still be acted on if confirmed by declining volume or touching a resistance level.
These strategies show how to blend both strong and weak signals into your trading for more nuanced decision-making.
Technical Analysis of the Code
1. Stochastic RSI Calculation:
The script calculates the Stochastic RSI (stochRsiK) using the RSI as input and smooths it with a moving average (stochRsiD).
Code Explanation : ta.stoch(rsi, rsi, rsi, stochLength) computes the Stochastic RSI, and ta.sma(stochRsiK, stochSmoothing) applies smoothing.
2. RSI Calculation :
The RSI is computed over a user-defined period and checks for overbought or oversold conditions.
Code Explanation : rsi = ta.rsi(close, rsiLength) calculates RSI values.
3. MACD Trend Filter :
MACD is calculated with fast, slow, and signal lengths, identifying trends via three consecutive bars moving in the same direction.
Code Explanation : = ta.macd(close, macdLengthFast, macdLengthSlow, macdSignalLength) sets MACD values. Conditions like macdLine < macdLine confirm trends.
4. Buy and Sell Conditions :
The script checks Stochastic RSI, RSI, and MACD values to set buy/sell flags. Candle color filters further confirm valid entries.
Code Explanation : buyConditionMet and sellConditionMet logically check all conditions and toggles (enableStochCondition, enableRSICondition, etc.).
5. Signal Flags and Confirmation :
Flags track when conditions are met and ensure signals only appear on appropriate candle colors.
Code Explanation : Conditional blocks (if statements) update buyFlag and sellFlag.
6. Labels and Alerts :
The indicator plots "BUY" or "SELL" labels with the RSI value when signals trigger and sets alerts through alertcondition().
Code Explanation : label.new() displays the signal, color-coded for strength based on RSI.
NOTE : All strategies can be enabled or disabled in the settings, allowing traders to customize the indicator to their preferences and trading styles.
Trade 1 + StatergyThe Relative Strength Index (RSI) is a momentum oscillator used in technical analysis that measures the speed and change of price movements of a security within a range of 0 to 100. It is most commonly set to a 14-period timeframe and helps traders identify overbought or oversold conditions, suggesting potential reversal points in the market. Divergence occurs when the price trend and the RSI trend move in opposite directions. A bullish divergence signals potential upward movement when prices are making new lows while the RSI makes higher lows. Conversely, a bearish divergence suggests a possible downward trend when prices are making new highs but the RSI is making lower highs. These signals are crucial for traders looking to capture shifts in momentum and adjust their trading strategies accordingly.
use full to
5 min
10 min
15 min decition
Options Series - Technical Analysis Chart➤ Simple Technical Chart Only:
➤ With MA-20 Overlay and Volatility background bars:
➤ With RSI Candles:
⭐ Overview and How It Works:
This script provides a multi-asset analysis tool to assess various market conditions across four symbols simultaneously. It combines several indicators such as daily price change, Moving Averages (MA), Bollinger Bands (BB), Parabolic SAR, RSI, and VWAP to generate buy/sell signals and trend indicators. Its strength lies in the layered use of indicators to enhance signal reliability, making it valuable for traders needing cross-validation in decision-making.
⭐ Key Features and Functionality:
The script evaluates each symbol's price against various indicators and conditions:
Daily Price Conditions: It checks if each symbol’s close price is above or below the previous day’s open, close, and intra-day ranges, forming a foundational bullish/bearish condition.
Range Breakout 1st 5min Candle (ORB): Opening Range Breakout levels are calculated and compared with current close prices, detecting breakout/breakdown conditions.
ORB Body: This basically calculates the previous day Daily candle body size, if todays Daily candle body size is greater than previous day, then we can say that we are having good momentum else its likely to be in-sidebar trading.
Moving Averages (MA): It leverages EMA-20, 2-day, and 3-day exponential moving averages to gauge short to medium-term trends.
RSI and VWAP: Relative Strength Index (RSI) determines overbought or oversold conditions, while VWAP compares prices to volume-weighted levels.
Bollinger Bands and Trend Analysis: Detects volatility and potential breakout conditions.
Concept of ORB Body:
Current_PrevDay_Body = (math.max(var_Current_PrevD_Open, var_Current_PrevD_Close) - math.min(var_Current_PrevD_Open, var_Current_PrevD_Close))
Current_Upper_ORB = var_Current_D_Open + Current_PrevDay_Body
Current_Lower_ORB = var_Current_D_Open - Current_PrevDay_Body
Current_TodayDay_Body = math.max(var_Current_D_Open, var_Current_Close) - math.min(var_Current_D_Open, var_Current_Close)
Current_ORBBody = Current_TodayDay_Body > Current_PrevDay_Body
Current_Upper_ORB_bull = (var_Current_Close > Current_Upper_ORB)
Current_Lower_ORB_bear = (var_Current_Close < Current_Lower_ORB)
🎨 Visualizations and User Experience:
The script can dynamically display colored backgrounds indicating trends when conditions are met. For example, the bgcolor function changes the background when certain trend-based criteria are satisfied, offering visual cues to users. Additionally, the checkbox input toggles trend bar visualizations, enhancing user experience by providing a quick visual reference without needing to interpret individual data points manually.
RSI-Based Candle Coloring:
➤ The script customizes candle colors based on RSI thresholds, specifically defining upper (60) and lower (40) RSI levels. When the RSI value exceeds the upper threshold, candles are colored as bullish (green), and if it falls below the lower threshold, candles are colored as bearish (red). Neutral RSI values result in a default color (gray).
➤ This setup offers a visually intuitive way to identify potential trend directions based on RSI levels, making it ideal for traders looking to gauge momentum visually.
⭐ Settings and Customization:
With multiple user-configurable inputs, the script allows for tailored analysis. Customizable parameters, such as enabling/disabling trend bars and setting various look-back periods for indicators like Bollinger Bands and Moving Averages, make it adaptable to various trading styles and preferences. It also allows users to modify visual elements like colors and styles, improving flexibility.
⭐ Uniqueness of the Concept:
The unique aspect of this script is its multi-symbol approach combined with complex conditions. By comparing not only one but four symbols simultaneously, it provides a broader market view and allows traders to correlate signals across different assets, offering a potential edge for diversified or comparative strategies. Additionally, the incorporation of ORB and multi-timeframe MAs gives it a robustness often lacking in simpler single-symbol scripts.
🚀 Conclusion:
This script is a powerful multi-indicator tool suited for traders looking for a comparative, multi-symbol analysis. With features like ORB, Bollinger Band-based trend detection, and MA cross-verification, it can assist traders in identifying and validating trend signals across assets. The user-friendly visualizations and customizable settings further enhance its usability, making it versatile for various trading strategies and preferences.
Z-Score RSI StrategyOverview
The Z-Score RSI Indicator is an experimental take on momentum analysis. By applying the Relative Strength Index (RSI) to a Z-score of price data, it measures how far prices deviate from their mean, scaled by standard deviation. This isn’t your traditional use of RSI, which is typically based on price data alone. Nevertheless, this unconventional approach can yield unique insights into market trends and potential reversals.
Theory and Interpretation
The RSI calculates the balance between average gains and losses over a set period, outputting values from 0 to 100. Typically, people look at the overbought or oversold levels to identify momentum extremes that might be likely to lead to a reversal. However, I’ve often found that RSI can be effective for trend-following when observing the crossover of its moving average with the midline or the crossover of the RSI with its own moving average. These crossovers can provide useful trend signals in various market conditions.
By combining RSI with a Z-score of price, this indicator estimates the relative strength of the price’s distance from its mean. Positive Z-score trends may signal a potential for higher-than-average prices in the near future (scaled by the standard deviation), while negative trends suggest the opposite. Essentially, when the Z-Score RSI indicates a trend, it reflects that the Z-score (the distance between the average and current price) is likely to continue moving in the trend’s direction. Generally, this signals a potential price movement, though it’s important to note that this could also occur if there’s a shift in the mean or standard deviation, rather than a meaningful change in price itself.
While the Z-Score RSI could be an insightful addition to a comprehensive trading system, it should be interpreted carefully. Mean shifts may validate the indicator’s predictions without necessarily indicating any notable price change, meaning it’s best used in tandem with other indicators or strategies.
Recommendations
Before putting this indicator to use, conduct thorough backtesting and avoid overfitting. The added parameters allow fine-tuning to fit various assets, but be careful not to optimize purely for the highest historical returns. Doing so may create an overly tailored strategy that performs well in backtests but fails in live markets. Keep it balanced and look for robust performance across multiple scenarios, as overfitting is likely to lead to disappointing real-world results.
XAUUSD 10-Minute StrategyThis XAUUSD 10-Minute Strategy is designed for trading Gold vs. USD on a 10-minute timeframe. By combining multiple technical indicators (MACD, RSI, Bollinger Bands, and ATR), the strategy effectively captures both trend-following and reversal opportunities, with adaptive risk management for varying market volatility. This approach balances high-probability entries with robust volatility management, making it suitable for traders seeking to optimise entries during significant price movements and reversals.
Key Components and Logic:
MACD (12, 26, 9):
Generates buy signals on MACD Line crossovers above the Signal Line and sell signals on crossovers below the Signal Line, helping to capture momentum shifts.
RSI (14):
Utilizes oversold (below 35) and overbought (above 65) levels as a secondary filter to validate entries and avoid overextended price zones.
Bollinger Bands (20, 2):
Uses upper and lower Bollinger Bands to identify potential overbought and oversold conditions, aiming to enter long trades near the lower band and short trades near the upper band.
ATR-Based Stop Loss and Take Profit:
Stop Loss and Take Profit levels are dynamically set as multiples of ATR (3x for stop loss, 5x for take profit), ensuring flexibility with market volatility to optimise exit points.
Entry & Exit Conditions:
Buy Entry: T riggered when any of the following conditions are met:
MACD Line crosses above the Signal Line
RSI is oversold
Price drops below the lower Bollinger Band
Sell Entry: Triggered when any of the following conditions are met:
MACD Line crosses below the Signal Line
RSI is overbought
Price moves above the upper Bollinger Band
Exit Strategy: Trades are closed based on opposing entry signals, with adaptive spread adjustments for realistic exit points.
Backtesting Configuration & Results:
Backtesting Period: July 21, 2024, to October 30, 2024
Symbol Info: XAUUSD, 10-minute timeframe, OANDA data source
Backtesting Capital: Initial capital of $700, with each trade set to 10 contracts (equivalent to approximately 0.1 lots based on the broker’s contract size for gold).
Users should confirm their broker's contract size for gold, as this may differ. This script uses 10 contracts for backtesting purposes, aligned with 0.1 lots on brokers offering a 100-contract specification.
Key Backtesting Performance Metrics:
Net Profit: $4,733.90 USD (676.27% increase)
Total Closed Trades: 526
Win Rate: 53.99%
Profit Factor: 1.44 (1.96 for Long trades, 1.14 for Short trades)
Max Drawdown: $819.75 USD (56.33% of equity)
Sharpe Ratio: 1.726
Average Trade: $9.00 USD (0.04% of equity per trade)
This backtest reflects realistic conditions, with a spread adjustment of 38 points and no slippage or commission applied. The settings aim to simulate typical retail trading conditions. However, please adjust the initial capital, contract size, and other settings based on your account specifics for best results.
Usage:
This strategy is tuned specifically for XAUUSD on a 10-minute timeframe, ideal for both trend-following and reversal trades. The ATR-based stop loss and take profit levels adapt dynamically to market volatility, optimising entries and exits in varied conditions. To backtest this script accurately, ensure your broker’s contract specifications for gold align with the parameters used in this strategy.
Weekly RSI Buy/Sell SignalsWeekly RSI Buy/Sell Signal Indicator
This indicator is designed to help traders identify high-probability buy and sell opportunities on the weekly chart by using the Relative Strength Index (RSI). By utilizing weekly RSI values, this indicator ensures signals align with broader market trends, providing a clearer view of potential price reversals and continuation.
How It Works:
Weekly RSI Calculation: This script calculates the RSI using a 14-period setting, focusing on the weekly timeframe regardless of the user’s current chart view. The weekly RSI is derived using request.security, allowing for consistent signals even on intraday charts.
Signal Conditions:
Buy Signal: A buy signal appears when the RSI crosses above the oversold threshold of 30, suggesting that price may be gaining momentum after a potential bottom.
Sell Signal: A sell signal triggers when the RSI crosses below the overbought threshold of 70, indicating a possible momentum shift downwards.
Visual Cues:
Buy/Sell Markers: Clear green "BUY" and red "SELL" markers are displayed on the chart when buy or sell conditions are met, making it easy to identify entry and exit points.
RSI Line and Thresholds: The weekly RSI value is plotted in real time with color-coded horizontal lines at 30 (oversold) and 70 (overbought), providing a visual reference for key levels.
This indicator is ideal for traders looking for reliable, trend-based signals on higher timeframes and can be a helpful tool for filtering out shorter-term market noise.
Pullback Scalp Trade V2Pullback Scalp Trading Indicator
This indicator combines multiple technical analysis tools to identify potential pullback trading opportunities in trending markets. It uses a dual moving average system along with RSI for confirmation, providing a comprehensive approach to trend-following and momentum trading.
Key Features:
1. Trend Identification:
- Uses 50 and 200 period moving averages to define the overall trend
- Visual trend zone highlighting for clear market direction
- Customizable MA periods for different timeframes
2. Signal Generation System:
- Combines RSI crossovers with trend direction
- Buy signals occur when:
* Price is above 200 MA (uptrend)
* RSI crosses above its SMA
* RSI is below the lower threshold (default 50)
- Sell signals occur when:
* Price is below 200 MA (downtrend)
* RSI crosses below its SMA
* RSI is above the upper threshold (default 50)
3. Customizable Parameters:
- Short and Long MA periods
- MA types (SMA, EMA, VWMA)
- RSI length and RSI-SMA length
- RSI signal thresholds
- Trend MA periods
Usage Guidelines:
- Best used on higher timeframes (1H and above) for trend trading
- Wait for price to respect the trend zone before taking trades
- Use additional confirmation from price action or other indicators
- Adjust RSI levels based on market volatility
Limitations:
- Like all indicators, this tool may generate false signals in choppy markets
- Should not be used as a sole decision-making tool
- Past performance does not guarantee future results
----------
Türkçe Açıklama:
Bu indikatör, trendli piyasalarda potansiyel geri çekilme fırsatlarını belirlemek için birden fazla teknik analiz aracını birleştirir. Trend takibi ve momentum ticareti için kapsamlı bir yaklaşım sunan ikili hareketli ortalama sistemi ile RSI'yı bir arada kullanır.
Temel Özellikler:
1. Trend Belirleme:
- Genel trendi tanımlamak için 50 ve 200 periyotlu hareketli ortalamalar
- Görsel trend bölgesi vurgulaması
- Farklı zaman dilimleri için özelleştirilebilir MA periyotları
2. Sinyal Üretim Sistemi:
- RSI kesişimlerini trend yönü ile birleştirir
- Alış sinyalleri şu durumlarda oluşur:
* Fiyat 200 MA'nın üzerinde (yükseliş trendi)
* RSI, SMA'sını yukarı keser
* RSI alt eşiğin altında (varsayılan 50)
- Satış sinyalleri şu durumlarda oluşur:
* Fiyat 200 MA'nın altında (düşüş trendi)
* RSI, SMA'sını aşağı keser
* RSI üst eşiğin üzerinde (varsayılan 50)
3. Özelleştirilebilir Parametreler:
- Kısa ve Uzun MA periyotları
- MA tipleri (SMA, EMA, VWMA)
- RSI uzunluğu ve RSI-SMA uzunluğu
- RSI sinyal seviyeleri
- Trend MA periyotları
Kullanım Önerileri:
- Trend ticareti için yüksek zaman dilimlerinde (1S ve üzeri) kullanılması önerilir
- İşlem almadan önce fiyatın trend bölgesine saygı göstermesini bekleyin
- Fiyat hareketi veya diğer indikatörlerden ek teyit alın
- RSI seviyelerini piyasa volatilitesine göre ayarlayın
Sınırlamalar:
- Tüm indikatörler gibi, dalgalı piyasalarda yanlış sinyaller üretebilir
- Tek başına karar verme aracı olarak kullanılmamalıdır
- Geçmiş performans, gelecekteki sonuçların garantisi değildir
Supertrend StrategyThe Supertrend Strategy was created based on the Supertrend and Relative Strength Index (RSI) indicators, widely respected tools in technical analysis. This strategy combines these two indicators to capture market trends with precision and reliability, looking for optimizing exit levels at oversold or overbought price levels.
The Supertrend indicator identifies trend direction based on price and volatility by using the Average True Range (ATR). The ATR measures market volatility by calculating the average range between an asset’s high and low prices over a set period. It provides insight into price fluctuations, with higher ATR values indicating increased volatility and lower values suggesting stability. The Supertrend Indicator plots a line above or below the price, signaling potential buy or sell opportunities: when the price closes above the Supertrend line, an uptrend is indicated, while a close below the line suggests a downtrend. This line shifts as price movements and volatility levels change, acting as both a trailing stop loss and trend confirmation.
To enhance the Supertrend strategy, the Relative Strength Index (RSI) has been added as an exit criterion. As a momentum oscillator, the RSI indicates overbought (usually above 70) or oversold (usually below 30) conditions. This integration allows trades to close when the asset is overbought or oversold, capturing gains before a possible reversal, even if the percentage take profit level has not been reached. This mechanism aims to prevent losses due to market reversals before the Supertrend signal changes.
### Key Features
1. **Entry criteria**:
- The strategy uses the Supertrend indicator calculated by adding or subtracting a multiple of the ATR from the closing price, depending on the trend direction.
- When the price crosses above the Supertrend line, the strategy signals a long (buy) entry. Conversely, when the price crosses below, it signals a short (sell) entry.
- The strategy performs a reversal if there is an open position and a change in the direction of the supertrend occurs
2. **Exit criteria**:
- Take profit of 30% (default) on the average position price.
- Oversold (≤ 5) or overbought (≥ 95) RSI
- Reversal when there is a change in direction of the Supertrend
3. **No Repainting**:
- This strategy is not subject to repainting, as long as the timeframe configured on your chart is the same as the supertrend timeframe .
4. **Position Sizing by Equity and risk management**:
- This strategy has a default configuration to operate with 35% of the equity. At the time of opening the position, the supertrend line is typically positioned at about 12 to 16% of the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity can be adjusted by the user according to their risk management.
5. **Backtest results**:
- This strategy was subjected to deep backtesting and operations in replay mode, including transaction fees of 0.12%, and slippage of 5 ticks.
- The past results in deep backtest and replay mode were compatible and profitable (Variable results depending on the take profit used, supertrend and RSI parameters). However, it should be noted that few operations were evaluated, since the currency in question has been created for a short time and the frequency of operations is relatively small.
- Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
Default Settings
Chart timeframe: 2h
Supertrend Factor: 3.42
ATR period: 14
Supertrend timeframe: 2 h
RSI timeframe: 15 min
RSI Lenght: 5 min
RSI Upper limit: 95
RSI Lower Limit: 5
Take Profit: 30%
BYBIT:1000000MOGUSDT.P
Atr Target TP & Protecion Zone [Pinescriptlabs]This indicator provides an adaptive trailing stop system with dynamic price targets and protection zones, ideal for position management.
Main Features:
🚦 ADAPTIVE TRAILING STOP:
Automatically adjusts based on volatility (ATR) and volume
Two modes: "Modified" and "UnModified" for true range calculation
Displayed as a line with colored background (green for longs, red for shorts)
🎯 TARGET ZONES (T1 & T2):
Calculates two target zones (T1 and T2) based on:
Market strength (combination of RSI, volume, MFI, ADX, MACD)
Current volatility (ATR)
Distance from current price
Visualized with blue boxes (T1) and purple boxes (T2)
🛡️ PROTECTION ZONE:
Automatically activates in sideways markets
Provides an additional buffer to the trailing stop
Helps avoid premature exits in volatile markets
📊 INFORMATION PANELS:
Top Right Panel displays:
Current trend direction
Target status (T1 & T2)
Market strength
Current ATR
RSI level
Bottom Right Panel displays:
Trailing status (WIDE/NORMAL)
Volume impact
Directional strength
Protection zone status
Español:
Este indicador proporciona un sistema de trailing stop adaptativo con objetivos de precio dinámicos y zonas de protección, ideal para la gestión de posiciones.
**Características Principales**:
🚦 **TRAILING STOP ADAPTATIVO**:
- Se ajusta automáticamente según la volatilidad (ATR) y el volumen
- Dos modos: "Modified" y "UnModified" para el cálculo del rango verdadero
- Se visualiza como una línea con fondo coloreado (verde para largos, rojo para cortos)
🎯 **ZONAS OBJETIVO (T1 y T2)**:
- Calcula dos zonas objetivo (T1 y T2) basadas en:
- Fuerza del mercado (combinación de RSI, volumen, MFI, ADX, MACD)
- Volatilidad actual (ATR)
- Distancia al precio actual
- Visualización mediante cajas azules (T1) y moradas (T2)
🛡️ **ZONA DE PROTECCIÓN**:
- Se activa automáticamente en mercados laterales
- Proporciona un buffer adicional al trailing stop
- Ayuda a evitar salidas prematuras en mercados volátiles
📊 **PANELES INFORMATIVOS**:
*Panel Superior Derecho* muestra:
- Dirección de la tendencia actual
- Estado de los objetivos (T1 y T2)
- Fuerza del mercado
- ATR actual
- Nivel de RSI
*Panel Inferior Derecho* muestra:
- Estado del trailing (WIDE/NORMAL)
- Impacto del volumen
- Fuerza direccional
- Estado de la zona de protección
RSI from Rolling VWAP [CHE]Introducing the RSI from Rolling VWAP Indicator
Elevate your trading strategy with the RSI from Rolling VWAP —a cutting-edge indicator designed to provide unparalleled insights and enhance your decision-making on TradingView. This advanced tool seamlessly integrates the Relative Strength Index (RSI) with a Rolling Volume-Weighted Average Price (VWAP) to deliver precise and actionable trading signals.
Why Choose RSI from Rolling VWAP ?
- Clear Trend Detection: Our enhanced algorithms ensure accurate identification of bullish and bearish trends, allowing you to capitalize on market movements with confidence.
- Customizable Time Settings: Tailor the time window in days, hours, and minutes to align perfectly with your unique trading strategy and market conditions.
- Flexible Moving Averages: Select from a variety of moving average types—including SMA, EMA, WMA, and more—to smooth the RSI, providing clearer trend analysis and reducing market noise.
- Threshold Alerts: Define upper and lower RSI thresholds to effortlessly spot overbought or oversold conditions, enabling timely and informed trading decisions.
- Visual Enhancements: Enjoy a visually intuitive interface with color-coded RSI lines, moving averages, and background fills that make interpreting market data straightforward and efficient.
- Automatic Signal Labels: Receive immediate bullish and bearish labels directly on your chart, signaling potential trading opportunities without the need for constant monitoring.
Key Features
- Inspired by Proven Tools: Building upon the robust foundation of TradingView's Rolling VWAP, our indicator offers enhanced functionality and greater precision.
- Volume-Weighted Insights: By incorporating volume into the VWAP calculation, gain a deeper understanding of price movements and market strength.
- User-Friendly Configuration: Easily adjust settings to match your trading preferences, whether you're a novice trader or an experienced professional.
- Hypothesis-Driven Analysis: Utilize hypothetical results to backtest strategies, understanding that past performance does not guarantee future outcomes.
How It Works
1. Data Integration: Utilizes the `hlc3` (average of high, low, and close) as the default data source, with customization options available to suit your trading needs.
2. Dynamic Time Window: Automatically calculates the optimal time window based on an auto timeframe or allows for fixed time periods, ensuring flexibility and adaptability.
3. Rolling VWAP Calculation: Accurately computes the Rolling VWAP by balancing price and volume over the specified time window, providing a reliable benchmark for price action.
4. RSI Analysis: Measures momentum through RSI based on Rolling VWAP changes, smoothed with your chosen moving average for enhanced trend clarity.
5. Actionable Signals: Detects and labels bullish and bearish conditions when RSI crosses predefined thresholds, offering clear indicators for potential market entries and exits.
Seamless Integration with Your TradingView Experience
Adding the RSI from Rolling VWAP to your TradingView charts is straightforward:
1. Add to Chart: Simply copy the Pine Script code into TradingView's Pine Editor and apply it to your desired chart.
2. Customize Settings: Adjust the Source Settings, Time Settings, RSI Settings, MA Settings, and Color Settings to align with your trading strategy.
3. Monitor Signals: Watch for RSI crossings above or below your set thresholds, accompanied by clear labels indicating bullish or bearish trends.
4. Optimize Your Trades: Leverage the visual and analytical strengths of the indicator to make informed buy or sell decisions, maximizing your trading potential.
Disclaimer:
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Get Started Today
Transform your trading approach with the RSI from Rolling VWAP indicator. Experience the synergy of momentum and volume-based analysis, and unlock the potential for more accurate and profitable trades.
Download now and take the first step towards a more informed and strategic trading journey!
For further inquiries or support, feel free to contact
Best regards
Chervolino
Inspired by the acclaimed Rolling VWAP by TradingView
Savitzky Golay Median Filtered RSI [BackQuant]Savitzky Golay Median Filtered RSI
Introducing BackQuant's Savitzky Golay Median Filtered RSI, a cutting-edge indicator that enhances the classic Relative Strength Index (RSI) by applying both a Savitzky-Golay filter and a median filter to provide smoother and more reliable signals. This advanced approach helps reduce noise and captures true momentum trends with greater precision. Let’s break down how the indicator works, the features it offers, and how it can improve your trading strategy.
Core Concept: Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a widely used momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, with levels above 70 typically indicating overbought conditions and levels below 30 indicating oversold conditions. However, the standard RSI can sometimes generate noisy signals, especially in volatile markets, making it challenging to identify reliable entry and exit points.
To improve upon the traditional RSI, this indicator introduces two powerful filters: the Savitzky-Golay filter and a median filter.
Savitzky-Golay Filter: Smoothing with Precision
The Savitzky-Golay filter is a digital filtering technique used to smooth data while preserving important features, such as peaks and trends. Unlike simple moving averages that can distort important price data, the Savitzky-Golay filter uses polynomial regression to fit the data, providing a more accurate and less lagging result.
In this script, the Savitzky-Golay filter is applied to the RSI values to smooth out short-term fluctuations and provide a more reliable signal. By using a window size of 5 and a polynomial degree of 2, the filter effectively reduces noise without compromising the integrity of the underlying price movements.
Median Filter: Reducing Outliers
After applying the Savitzky-Golay filter, the median filter is applied to the smoothed RSI values. The median filter is particularly effective at removing short-lived outliers, further enhancing the accuracy of the RSI by reducing the impact of sudden and temporary price spikes or drops. This combination of filters creates an ultra-smooth RSI that is better suited for detecting true market trends.
Long and Short Signals
The Savitzky Golay Median Filtered RSI generates long and short signals based on user-defined threshold levels:
Long Signals: A long signal is triggered when the filtered RSI exceeds the Long Threshold (default set at 176). This indicates that momentum is shifting upward, and it may present a good buying opportunity.
Short Signals: A short signal is generated when the filtered RSI falls below the Short Threshold (default set at 162). This suggests that momentum is weakening, potentially signaling a selling opportunity or exit from a long position.
These threshold levels can be adjusted to suit different market conditions and timeframes, allowing traders to fine-tune the sensitivity of the indicator.
Customization and Visualization Options
The Savitzky Golay Median Filtered RSI comes with several customization options, enabling traders to tailor the indicator to their specific needs:
Calculation Source: Select the price source for the RSI calculation (default is OHLC4, but it can be changed to close, open, high, or low prices).
RSI Period: Adjust the lookback period for the RSI calculation (default is 14).
Median Filter Length: Control the length of the median filter applied to the smoothed RSI, affecting how much noise is removed from the signal.
Threshold Levels: Customize the long and short thresholds to define the sensitivity for generating buy and sell signals.
UI Settings: Choose whether to display the RSI and thresholds on the chart, color the bars according to trend direction, and adjust the line width and colors used for long and short signals.
Visual Feedback: Color-Coded Signals and Thresholds
To make the signals easier to interpret, the indicator offers visual feedback by coloring the price bars and the RSI plot according to the current market trend:
Green Bars indicate long signals when momentum is bullish.
Red Bars indicate short signals when momentum is bearish.
Gray Bars indicate neutral or undecided conditions when no clear signal is present.
In addition, the Long and Short Thresholds can be plotted directly on the chart to provide a clear reference for when signals are triggered, allowing traders to visually gauge the strength of the RSI relative to its thresholds.
Alerts for Automation
For traders who prefer automated notifications, the Savitzky Golay Median Filtered RSI includes built-in alert conditions for long and short signals. You can configure these alerts to notify you when a buy or sell condition is met, ensuring you never miss a trading opportunity.
Trading Applications
This indicator is versatile and can be used in a variety of trading strategies:
Trend Following: The combination of Savitzky-Golay and median filtering makes this RSI particularly useful for identifying strong trends without being misled by short-term noise. Traders can use the long and short signals to enter trades in the direction of the prevailing trend.
Reversal Trading: By adjusting the threshold levels, traders can use this indicator to spot potential reversals. When the RSI moves from overbought to oversold levels (or vice versa), it may signal a shift in market direction.
Swing Trading: The smoothed RSI provides a clear signal for short to medium-term price movements, making it an excellent tool for swing traders looking to capitalize on momentum shifts.
Risk Management: The filtered RSI can be used as part of a broader risk management strategy, helping traders avoid false signals and stay in trades only when the momentum is strong.
Final Thoughts
The Savitzky Golay Median Filtered RSI takes the classic RSI to the next level by applying advanced smoothing techniques that reduce noise and improve signal reliability. Whether you’re a trend follower, swing trader, or reversal trader, this indicator provides a more refined approach to momentum analysis, helping you make better-informed trading decisions.
As with all indicators, it is important to backtest thoroughly and incorporate sound risk management strategies when using the Savitzky Golay Median Filtered RSI in your trading system.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
