Nadaraya-Watson Envelope & RSI & Stoch RSI - Step 2

A compact and effective momentum confirmation tool designed to validate price-based entries using dual RSI and smoothed Stochastic RSI structures.

🧠 Why Combine RSI and StochRSI?
This script blends two levels of RSI analysis to help traders assess overbought/oversold conditions and detect early reversal signals:

The dual RSI structure provides a fast-vs-slow momentum comparison, offering both short-term timing and longer-term trend sensitivity.

The StochRSI module helps confirm reversal setups with smoother K/D crossovers.

Background zone shading enhances visibility of exhaustion areas.

These combined tools serve as a secondary validation layer, perfect for scalpers and swing traders using price-based strategies.

🔍 Feature Modules
🟢 Dual RSI
Fast and slow RSI lines plotted together for comparative strength tracking.

Shaded zone between typical exhaustion levels (e.g., 30~70) to highlight potential mean reversions.

🟠 Stochastic RSI
Uses smoothed K & D lines based on a short RSI input.

Visual aids include:

Extreme zones (e.g., 30 / 70)

Midline for trend bias (50)

Transparent fills to highlight oversold/overbought cross events.

⚙️ Suggested Use Cases
Use RSI divergence or alignment to confirm entries from your main price action strategy.

Monitor K/D crossover signals to fine-tune entry or exit timing.

Filter fakeouts by requiring agreement across all three signals (Fast RSI, Slow RSI, and StochRSI).

✅ Originality Statement
This script isn't just a visual mashup of indicators—it carefully integrates multiple layers of RSI logic to build confidence for timing trades in volatile or ranging markets.

⚠️ Disclaimer
This tool is for research and educational purposes only. It is not financial advice. Trading involves risk. Use at your own discretion.