Rube Goldberg Top/Bottom Finder [theUltimator5]

This is what I call the Rube Goldberg Top and Bottom Finder. It is an overly complex method of plotting a simple buy or sell label on a chart.

I utilize several standard TA techniques along with several of my own to try and locate ideal Buy/Sell conditions. I came up with the name because there are way too many conditional variables to come up with a single buy or sell condition, when most standard indicators use simple crossovers or levels.

There are two unique triggers that are calculated using completely independent techniques. If both triggers turn true within a small timeframe between each other, the buy/sell trigger turns true and plots a "buy" or "sell" label on the chart.

This indicator was designed to be fully functioning out of the box and can be customized only if the user wishes to. It is effective on all timeframes, but longer timeframes (daily +) may require signal length adjustment for best results.

https://imgur.com/a/GxRq5UG

The signals used in the leading trigger are as follows:

(1)RSI
The user can select among any of the following moving averages (base is EMA) (#3), and have an RSI generated at a user defined length (base is 14). (#4)
SMA, EMA, DEMA, TEMA, WMA, VWMA, SMMA, HMA, LSMA, ALMA

The user can select whether or not the RSI is filtered with the following options:
None, Kalman, Double EMA, ALMA
The filter conditions are hard coded to minimize the amount of selections that the user is required to make to reduce the user interface complexity.

The user can define overbought (base 70) and oversold (base 30) conditions. (#2)

When the RSI crosses above or below the threshold values, the plot will turn red. This creates condition 1 of the leading trigger.

(2) ADX and DI
This portion of the indicator is a derivative of my ADX Divergence and Gap Monitor indicator.

This technique looks at the ADX value as well as for spikes in either +DI or -DI for large divergences. When the ADX reaches a certain threshold and also outpaces a preset ADX moving average, this creates condition 2 of the leading trigger.

There is an additional built-in functionality in this portion of the indicator that looks for gaps. It triggers when the ADX is below a certain threshold value and either the +DI or -DI spike above a certain threshold value, indicating a sudden gap in price after a period of low volatility.

The user can set whether or nor to show when a gap appears on the chart or as a label on the plot below the chart (disabled by default). If the user chooses to overlay gaps on the chart, it creates a horizontal fill showing the starting point of the gap. The theory here is that the price will return at some point in the near future to the starting point of the gap.

https://imgur.com/a/uScVUDC

(3) DI based Multi-Symbol reference and divergence
Part of the script computes both the +DI (positive directional index) and -DI (negative directional index) for the currently selected chart symbol and three reference symbols.

The averaged directional move of the reference symbols are compared to the current ticker on your chart and if the divergence exceeds a certain threshold, then the third condition of the trigger is met.

The components that are referenced are based on what stock/chart you are looking at. The script automatically detects if you are looking at a crypto, and uses a user selectable toggle between Large Cap or Small Cap. (#1) The threshold levels are determined by the asset type and market cap.

The leading trigger highlights under several conditions:
1) All (3) portions of the trigger result in true simultaneously
OR
2) Any of triggers 2 or 3 reach a certain threshold that indicates extreme market/price divergence as well as trigger 1 being overbought or oversold.
AND
3) If the trigger didn't highlight

For the lagging part of the trigger:
The lagging trigger is used as a confirmation after the leading trigger to indicate a possible optimized entry/exit point. It can also be used by itself, as well as the leading indicator.

The lagging indicator utilizes the parabolic Stop And Reverse (SAR). It utilizes the RSI length that is defined in portion 1 of the leading trigger as well as the overbought and oversold thresholds. I have found excellent results in catching reversals because it catches rate-of-change events rather than price reversals alone.

https://imgur.com/a/NhRtGet


When both the leading triggers FOLLOWED BY the lagging trigger result in true within a user defined timeframe, then the buy or sell trigger results in true, plotting a label on the chart.

All portions of the leading and lagging indicators can be toggled on or off, but most of them are toggled off by default in order to reduce noise on the plot.

https://imgur.com/a/EDoPFoC

The leading, lagging, and buy/sell triggers each have built-in alerts that can be toggled on or off in the alert menu.

I have an optional built-in toggle to show green or red dots on the RSI line using two separate RSI lengths that are amplified and plot based on RSI divergence and strength. This can be used as a visual confirmation (or rejection) against the chart overlay plots.

https://imgur.com/a/2i2qhVX

This indicator is not a strategy, so there are no built-in exits or stop losses.