Gabriel's RSI ICHIMOKU CLOUDThe RSI Ichimoku Cloud combines the strengths of the Relative Strength Index (RSI) with the Ichimoku Cloud, offering a robust visualization of momentum and trend signals. This indicator helps traders identify potential trend reversals and key support/resistance levels by blending RSI with the Ichimoku Cloud components.
Key Features:
RSI Component:
Uses a customizable RSI length (default: 21) to detect overbought and oversold conditions.
Upper and Lower Bands (70 and 30) are plotted as dashed lines, highlighting critical zones of strength and weakness.
Bullish (green) and Bearish (red) cross signals are provided when RSI crosses key levels.
Ichimoku Cloud:
Conversion Line (Tenkan Sen): A 9-period Donchian channel (default), representing short-term price movements. Plotted in blue.
Base Line (Kijun Sen): A 26-period Donchian channel (default), representing mid-term price movements. Plotted in red.
Leading Span A (Senkou Span A): The average of the Conversion Line and Base Line, projected forward (displacement: 26). Plotted in green with transparency.
Leading Span B (Senkou Span B): A 52-period Donchian channel (default), projected forward (displacement: 26). Plotted in red with transparency.
The cloud fill between Senkou Span A and B changes color based on bullish (green) or bearish (red) cloud conditions.
Candlestick Overlay:
The indicator uses RSI values to color-code candlesticks. Bullish candles (RSI > Conversion Line) are green, and bearish candles (RSI < Conversion Line) are red.
Signal Crossovers:
RSI-Based Signals: Bullish and Bearish RSI crossovers with the Base Line trigger visual markers.
Ichimoku Signals: Bullish and Bearish crossovers between the Conversion Line and Base Line provide additional trade signals.
Alerts:
Alerts are triggered based on crossovers, allowing traders to set notifications for key trend changes.
This indicator is ideal for traders looking for a powerful blend of momentum (RSI) and trend-following (Ichimoku) tools in one place, with customizable settings for precise trade entry and exit signals.
Relative Strength Index (RSI)
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
DYNAMIC USD MOMENTUM INDICATOR
Hello traders,
Welcome to my script, an indicator helping you to quickly see the performance of USD in constant daily comparison to other currencies.
This script requests price data from other charts but displays overbought and oversold labels on any selected chart currency pair.
See attached images to spot high probability reversal days when USD is in extremes against multiple other currencies. The output labels represent the currency traded against USD and reaching overbought and oversold zoned on a dynamic RSI scale.
Suggested pairs with higher co relation to stronger or weaker dollar:
AUD/USD, CAD/USD, EUR/USD, GBP/USD, NZD/USD
CHF/USD and JPY/USD require more in depth analysis of individual performance of JPY AND CHF
Multi RSIDynamically display RSIs for current timeframe, 1 min, 5 min, 15 min, 30 min, 1 hour, 4 hour, 1 day, 1 week, and 1 month timeframes.
Lower timeframe RSIs that are too far below the current timeframe will be automatically hidden. E.g., 1 min RSI isn't displayed above 5 minute timeframe and 5 min RSI isn't displayed above 15 minute timeframe.
If RSI for current timeframe is enabled, it will be hidden if the current timeframe is 1 min, 5 min, 15 min, 30 min, 1 hour, 4 hour, 1 day, 1 week, or 1 month and the RSI for that timeframe is already shown.
Can display divergences and moving average if there is an RSI shown that is the same timeframe as the chart timeframe.
Can enable alerts for when RSI(s) are very overbought (greater than or equal to 80), overbought (greater than or equal to 70), oversold (less than or equal to 30), and very oversold (less than or equal to 20).
RSI Crossover and ADX oscillator [deepakks444]RSI Crossover and ADX Oscillator
The RSI Crossover and ADX Oscillator is a custom indicator designed to help traders identify potential trend reversals and trend strength by analyzing the Relative Strength Index (RSI) across multiple timeframes, combined with the Average Directional Index (ADX) to measure the momentum of a trend. This indicator provides a more comprehensive view of the market, allowing traders to spot possible entry and exit points based on multiple signals and conditions.
How the Script Works:
1. Multi-Timeframe RSI Calculation:
This indicator calculates the RSI for three different timeframes:
RSI 1 (default: 15 minutes)
RSI 2 (default: 1 hour)
RSI 3 (default: Daily)
By comparing the RSI across multiple timeframes, traders can gauge both short-term and longer-term momentum. For example, if the shorter timeframe RSI is moving in the same direction as the longer timeframe RSI, it may confirm the strength of the trend. Conversely, if they diverge, it could signal a potential reversal or weakening of the trend.
Each RSI value can also be smoothed using a variety of smoothing methods (SMA, EMA, WMA, RMA) to reduce noise and produce cleaner signals.
2. RSI Smoothing Options:
The smoothing function helps make RSI readings clearer by filtering out short-term fluctuations. This can be useful in volatile markets where small movements can trigger false signals. The user can select the preferred smoothing method (or choose none) and set the smoothing factor to control the sensitivity of the RSI line.
None: No smoothing applied.
SMA (Simple Moving Average): Averages RSI over a specified period, providing a more straightforward trend line.
EMA (Exponential Moving Average): Puts more weight on recent data points, making the trend line more responsive to recent price movements.
WMA (Weighted Moving Average): A weighted average that emphasizes more recent values.
RMA (Running Moving Average): Another smoothing option similar to SMA but with different calculation properties.
3. ADX Trend Strength Measurement:
The Average Directional Index (ADX) is used to measure the strength of a trend, regardless of its direction. ADX is a widely used tool to confirm whether the market is trending strongly or if the market is in a sideways range.
ADX > 25: Indicates a strong trend.
ADX < 25: Indicates a weak trend or range-bound market.
In this script, the color of the ADX line changes dynamically based on whether the trend is strengthening (green) or weakening (red). This allows traders to quickly assess whether the market conditions are favorable for trend-following strategies.
4. Divergence Detection:
The script includes an option to detect regular bullish and bearish divergence between price and RSI. Divergence occurs when price moves in one direction but RSI moves in the opposite direction, which may indicate that the current trend is weakening and could be about to reverse.
Bullish Divergence: Occurs when the price makes a lower low, but the RSI makes a higher low. This could signal a potential upward reversal.
Bearish Divergence: Occurs when the price makes a higher high, but the RSI makes a lower high. This could signal a potential downward reversal.
These divergence signals help traders spot potential reversal points before they become obvious on the price chart itself.
5. No-Trade Zone:
The no-trade zone is an important feature of this script. It highlights the range between RSI 40 and 60, which represents a neutral or indecisive market condition. When the RSI is within this range, it indicates that the market lacks clear directional momentum, making it a riskier environment for trend-following trades. The script shades this region on the chart, visually warning traders to avoid initiating trades during these periods.
Visual Table Display:
To improve clarity, the script includes a table that shows key values directly on the chart:
RSI 1 (15-minute): Displays the current RSI value for the 15-minute timeframe.
RSI 2 (1-hour): Displays the current RSI value for the 1-hour timeframe.
RSI 3 (Daily): Displays the current RSI value for the Daily timeframe.
ADX: Displays the current ADX value, with color-coding to show whether the trend is strengthening (green) or weakening (red).
Long/Short Signal: This final cell in the table shows whether a potential Long or Short signal is currently active based on RSI crossovers and ADX strength.
The table can be repositioned on the chart according to user preference (Top Right, Top Left, Bottom Right, Bottom Left).
Possible Entry and Exit Points:
Long Entry Criteria:
RSI 1 crosses above RSI 2.
RSI 1 is above its 9-period moving average (to confirm upward momentum).
When these conditions are met, the script will display a potential Long signal in the table, and an alert will be triggered if enabled.
Note : ADX is rising, indicating that the trend strength is increasing. ADX is falling, indicating that the trend is weakening.
Short Entry Criteria:
RSI 1 (15-minute) crosses below RSI 2 (1-hour).
RSI 1 is below its 9-period moving average (to confirm downward momentum).
Note : ADX is rising, indicating that the trend strength is increasing. ADX is falling, indicating that the trend is weakening.
When these conditions are met, the script will display a potential Short signal in the table, and an alert will be triggered if enabled.
Exit Criteria:
Exit a Long position when a Short signal is generated or when a yellow candle appears, which indicates that momentum is weakening.
Exit a Short position when a Long signal is generated or when a yellow candle appears.
Customizable Inputs:
This script offers several customization options for users:
RSI Length and Timeframes:
Adjust the length of the RSI calculation and the timeframes for each RSI (default: 15-minute, 1-hour, Daily). This allows traders to tailor the script to different market conditions and assets.
Smoothing Method:
Choose how the RSI values are smoothed (None, SMA, EMA, WMA, RMA) and adjust the smoothing factor.
ADX Settings:
Toggle the ADX on/off, and adjust the smoothing factor and DI length to match your preferred trend strength calculation.
Divergence Detection:
Enable or disable divergence detection and set the range of bars for detecting divergence patterns.
Table Position:
Change the location of the table on the chart (Top Right, Top Left, Bottom Right, Bottom Left).
Note : I have used RSI 1 = 3 Minutes, RSI 2 = 15 Minutes and RSI 3 = 1 Hour as input in the shown chart.
Important Notes:
This script is intended for educational purposes only. It is designed to help traders learn how to combine RSI and ADX to analyze trends and momentum, but it should not be used as financial advice or a guaranteed trading strategy.
Always test the script in a demo environment before using it in live trading to understand how it behaves with different assets and timeframes.
Proper risk management and additional confirmations should be used alongside this indicator for effective trading.
RSI with Dynamic ColorsThe "RSI with Dynamic Colors" is a custom indicator built on top of the traditional Relative Strength Index (RSI), which helps traders identify overbought or oversold market conditions. This enhanced version includes added functionality like dynamic colors, highlighting specific conditions, and more customization options. Here's a breakdown of how this indicator works:
Indicator Components:
Relative Strength Index (RSI) Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, helping traders determine if an asset is overbought or oversold.
In this version, the RSI is calculated with a configurable lookback period (default is 14) and applies smoothing to both upward and downward price changes using the Relative Moving Average (RMA).
Dynamic Coloring:
The indicator dynamically changes the color of the RSI line based on its value. Specific thresholds include:
Blue: When the RSI is at or above an extreme overbought level (≥ 85).
Red: When the RSI is in the overbought zone (≥ 70 but < 85).
Yellow: When the RSI is at or below the extreme oversold level (≤ 15).
Green: When the RSI is in the oversold zone (≤ 30 but > 15).
White: When the RSI is between the oversold and overbought zones.
Moving Average Options (MA):
The indicator allows the user to plot an optional moving average of the RSI for additional trend confirmation. Users can select from various types of moving averages, including Simple Moving Average (SMA), Exponential Moving Average (EMA), and others.
Bollinger Bands can be optionally applied around the RSI to visualize volatility.
Overbought and Oversold Highlights:
It provides visual highlights (green for overbought and red for oversold) in the background of the RSI plot, making it easier to identify potential reversal zones.
Divergence Detection (Optional):
The indicator can optionally display regular bullish or bearish divergence, which can signal potential trend reversals. Divergence occurs when price moves in the opposite direction of the RSI.
Bullish divergence is indicated when the price makes lower lows while the RSI makes higher lows.
Bearish divergence is shown when the price makes higher highs while the RSI makes lower highs.
Alerts:
Users can set up alerts for bullish or bearish divergence, making it easier to get notified when key conditions occur in the market.
Use Case:
This custom RSI indicator is designed for traders who want to combine the classic RSI functionality with enhanced visual aids, such as color coding for different RSI zones, customizable moving averages, and Bollinger Bands. It is particularly useful for identifying potential market tops and bottoms by highlighting overbought/oversold conditions and divergence signals.
In summary, this indicator not only retains the traditional RSI's power but also adds new layers of insight through color, moving averages, and divergence detection, helping traders make better-informed decisions.
MTF RSI+CMO PROThis RSI+CMO script combines the Relative Strength Index (RSI) and Chande Momentum Oscillator (CMO), providing a powerful tool to help traders analyze price momentum and spot potential turning points in the market. Unlike using RSI alone, the CMO (especially with a 14-period length) moves faster and accentuates price pops and dips in the histogram, making price shifts more apparent.
Indicator Features:
➡️RSI and CMO Combined: This indicator allows traders to track both RSI and CMO values simultaneously, highlighting differences in their movement. RSI and CMO values are both plotted on the histogram, while CMO values are also drawn as a line moving through the histogram, giving a visual representation of their relationship. The often faster-moving CMO accentuates short-term price movements, helping traders spot subtle shifts in momentum that the RSI might smooth out.
➡️Multi-Time Frame Table: A real-time, multi-time frame table displays RSI and CMO values across various timeframes. This gives traders an overview of momentum across different intervals, making it easier to spot trends and divergences across short and long-term time frames.
➡️Momentum Chart Label: A chart label compares the current RSI and CMO values with values from 1 and 2 bars back, providing an additional metric to gauge momentum. This feature allows traders to easily see if momentum is increasing or decreasing in real-time.
➡️RSI/CMO Bullish and Bearish Signals: Colored arrow plot shapes (above the histogram) indicate when RSI and CMO values are signaling bullish or bearish conditions. For example, green arrows appear when RSI is above 65, while purple arrows show when RSI is below 30 and CMO is below -40, indicating strong bearish momentum.
➡️Divergences in Histogram: The histogram can make it easier for traders to spot divergences between price and momentum. For instance, if the price is making new highs but the RSI or CMO is not, a bearish divergence may be forming. Similarly, bullish divergences can be spotted when prices are making lower lows while RSI or CMO is rising.
➡️Alert System: Alerts are built into the indicator and will trigger when specific conditions are met, allowing traders to stay informed of potential entry or exit points based on RSI and CMO levels without constantly monitoring the chart. These are set manually. Look for the 3 dots in the indicator name.
How Traders Can Use the Indicator:
💥Identifying Momentum Shifts: The RSI+CMO combination is ideal for spotting momentum shifts in the market. Traders can monitor the histogram and the CMO line to determine if the market is gaining or losing strength.
💥Confirming Trade Entries/Exits: Use the real-time RSI and CMO values across multiple time frames to confirm trades. For instance, if the 1-hour RSI is above 70 but the 1-minute RSI is turning down, it could indicate short-term overbought conditions, signaling a potential exit or reversal.
💥Spotting Divergences: Divergences are critical for predicting potential reversals. The histogram can be used to spot divergences when RSI and CMO values deviate from price action, offering an early signal of market exhaustion.
💥Tracking Multi-Time Frame Trends: The multi-time frame table provides insight into the market’s overall trend across several timeframes, helping traders ensure their decisions align with both short and long-term trends.
RSI vs. CMO: Why Use Both?
While both RSI and CMO measure momentum, the CMO often moves faster with a value of 14 for example, reacting to price changes more quickly. This makes it particularly effective for detecting sharp price movements, while RSI helps smooth out price action. By using both, traders get a clearer picture of the market's momentum, particularly during volatile periods.
Confluence and Price Fluidity:
One of the powerful ways to enhance the effectiveness of this indicator is by using it in conjunction with other technical analysis tools to create confluence. Confluence occurs when multiple indicators or price action signals align, providing stronger confirmation for a trade decision. For example:
🎯Support and Resistance Levels: Traders can use RSI+CMO in combination with key support and resistance zones. If the price is nearing a support level and RSI+CMO values start to signal a bullish reversal, this alignment strengthens the case for entering a long position.
🎯Moving Averages: When the RSI+CMO signals a potential trend reversal and this is confirmed by a crossover in moving averages (such as a 50-day and 200-day moving average), traders gain additional confidence in the trade direction.
🎯Momentum Indicators: Traders can also look for momentum indicators like the MACD to confirm the strength of a trend or potential reversal. For instance, if the RSI+CMO values start to decrease rapidly while both the RSI+CMO also shows overbought conditions, this could provide stronger confirmation to exit a long trade or enter a short position.
🎯Candlestick Patterns: Price fluidity can be monitored using candlestick formations. For example, a bearish engulfing pattern with decreasing RSI+CMo values offers confluence, adding confidence to the signal to close or short the trade.
By combining the MTF RSI+CMO PRO with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
ATR Adjusted RSIATR Adjusted RSI Indicator
By Nathan Farmer
The ATR Adjusted RSI Indicator is a versatile indicator designed primarily for trend-following strategies, while also offering configurations for overbought/oversold (OB/OS) signals, making it suitable for mean-reversion setups. This tool combines the classic Relative Strength Index (RSI) with a unique Average True Range (ATR)-based smoothing mechanism, allowing traders to adjust their RSI signals according to market volatility for more reliable entries and exits.
Key Features:
ATR Weighted RSI:
At the core of this indicator is the ATR-adjusted RSI line, where the RSI is smoothed based on volatility (measured by the ATR). When volatility increases, the smoothing effect intensifies, resulting in a more stable and reliable RSI reading. This makes the indicator more responsive to market conditions, which is especially useful in trend-following systems.
Multiple Signal Types:
This indicator offers a variety of signal-generation methods, adaptable to different market environments and trading preferences:
RSI MA Crossovers: Generates signals when the RSI crosses above or below its moving average, with the flexibility to choose between different moving average types (SMA, EMA, WMA, etc.).
Midline Crossovers: Provides trend confirmation when either the RSI or its moving average crosses the 50 midline, signaling potential trend reversals.
ATR-Inversely Weighted RSI Variations: Uses the smoothed, ATR-adjusted RSI for a more refined and responsive trend-following signal. There are variations both for the MA crossover and the midline crossover.
Overbought/Oversold Conditions: Ideal for mean reversion setups, where signals are triggered when the RSI or its moving average crosses over overbought or oversold levels.
Flexible Customization:
With a wide range of customizable options, you can tailor the indicator to fit your personal trading style. Choose from various moving average types for the RSI, modify the ATR smoothing length, and adjust overbought/oversold levels to optimize your signals.
Usage:
While this indicator is primarily designed for trend-following, its OB/OS configurations make it highly effective for mean-reverting setups as well. Depending on your selected signal type, the relevant indicator line will change color between green and red to visually signal long or short opportunities. This flexibility allows traders to switch between trending and sideways market strategies seamlessly.
A Versatile Tool:
The ATR Adjusted RSI Indicator is a valuable component of any trading system, offering enhanced signals that adapt to market volatility. However, it is not recommended to rely on this indicator alone, especially without thorough backtesting. Its performance varies across different assets and timeframes, so it’s essential to experiment with the parameters to ensure consistent results before applying it in live trading.
Recommendation:
Before incorporating this indicator into live trading, backtest it extensively. Given its flexibility and wide range of signal-generation methods, backtesting allows you to optimize the settings for your preferred assets and timeframes. Only consider using it on it's own if you are confident in its performance based on your own backtest results, and even then, it is not recommended.
Pappabborgia Nasdaq RSI This script provides a custom Relative Strength Index (RSI) indicator that plots both the RSI of the selected stock and the Nasdaq (IXIC) on the same chart.
It offers a clear, side-by-side view to help traders better understand the stock's momentum relative to the overall market.
Key Features:
RSI Calculation for the Stock:
The script calculates the RSI for the chosen stock, with a default period of 14, adjustable to fit different timeframes.
The stock’s RSI is displayed in green 🟢, providing a direct view of its strength and momentum 📈.
RSI of the Nasdaq:
The script fetches the Nasdaq’s closing prices and calculates its RSI, which is shown in red for clear comparison 🔴.
Legend for Clarity:
A simple legend in the top-right corner identifies the green line as the stock’s RSI and the red line as the Nasdaq’s RSI, making it easy to interpret 📊.
Why Comparing the Stock's RSI to the Nasdaq Matters:
Broader Market Context:
Viewing both RSIs on the same chart helps you see whether the stock is moving in sync with the broader market or behaving independently. This provides valuable context for decision-making 📉.
Relative Strength Insights:
Comparing the stock’s RSI to the Nasdaq’s RSI highlights whether the stock is outperforming or underperforming the overall market, helping identify potential opportunities or risks 🟢🔴.
Improved Risk Management:
Monitoring overbought or oversold conditions in both the stock and Nasdaq RSIs can signal broader market trends and help avoid risky trades ⚠️.
Overall Benefit:
By tracking the RSI of both the stock and the Nasdaq, this script offers a powerful tool for understanding a stock's relative strength, providing essential context for smarter trading decisions 🎯.
TASC 2024.11 Ultimate Strength Index█ OVERVIEW
This script implements the Ultimate Strength Index (USI) indicator, introduced by John Ehlers in his article titled "Ultimate Strength Index (USI)" from the November 2024 edition of TASC's Traders' Tips . The USI is a modified version of Wilder's original Relative Strength Index (RSI) that incorporates Ehlers' UltimateSmoother lowpass filter to produce an output with significantly reduced lag.
█ CONCEPTS
Many technical indicators, including the RSI, lag due to their heavy reliance on historical data. John Ehlers reformulated the RSI to substantially reduce lag by applying his UltimateSmoother filter to upward movements ( strength up - SU ) and downward movements ( strength down - SD ) in the time series, replacing the standard process of smoothing changes with rolling moving averages (RMAs). Ehlers' recent works, covered in our recent script publications, have shown that the UltimateSmoother is an effective alternative to other classic averages, offering notably less lag in its response.
Ehlers also modified the RSI formula to produce an index that ranges from -1 to +1 instead of 0 to 100. As a result, the USI indicates bullish conditions when its value moves above 0 and bearish conditions when it falls below 0.
The USI retains many of the strengths of the traditional RSI while offering the advantage of reduced lag. It generally uses a larger lookback window than the conventional RSI to achieve similar behavior, making it suitable for trend trading with longer data lengths. When applied with shorter lengths, the USI's peaks and valleys tend to align closely with significant turning points in the time series, making it a potentially helpful tool for timing swing trades.
█ CALCULATIONS
The first step in the USI's calculation is determining each bar's strength up (SU) and strength down (SD) values. If the current bar's close exceeds the previous bar's, the calculation assigns the difference to SU. Otherwise, SU is zero. Likewise, if the current bar's close is below the previous bar's, it assigns the difference to SD. Otherwise, SD is zero.
Next, instead of the RSI's typical smoothing process, the USI's calculation applies the UltimateSmoother to the short-term average SU and SD values, reducing high-frequency chop in the series with low lag.
Finally, this formula determines the USI value:
USI = ( Ult (SU) − Ult (SD)) / ( Ult (SU) + Ult (SD)),
where Ult (SU) and Ult (SD) are the smoothed average strength up and strength down values.
OutperformX VCPSwingDesigned to measure and visualize the relative strength and outperformance of a stock compared to a benchmark. Here’s a feature-by-feature breakdown
Credits to Eeshan for all the help
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Alpha Calculation: What's it About?
The key component of this indicator is the Alpha calculation, which measures a stock's outperformance relative to a base index (e.g., Nifty Midsmall 400) while accounting for risk-free returns. By comparing the stock's performance with the base and risk-free rates, we get the Alpha.
The Alpha logic has been slightly modified, not strictly following the textbook approach
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Customizable Inputs: Tailored for You
You can choose whether to display Alpha.
Change the Base Index (e.g., NiftyMidsmall400).
Adjust the Performance Period (Days) for custom Alpha/Outperformance calculations.
Performance options range from 5 to 252 days, helping to fine-tune the outperformance tracking.
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Highlighting Performance Peaks: Short-Term & Long-Term
The indicator automatically highlights Short-Term Peak Performance over customizable short-term windows (e.g., 21 days).
It also detects Long-Term Performance Peaks, spanning up to 52 weeks. These peaks are represented as dots on the Alpha line.
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Color-Coded Alpha: Clear Visuals
To make the indicator visually intuitive:
Positive Alpha (outperformance) is marked in green.
Negative Alpha (underperformance) is shown in red. These are customizable so you can adjust colors to your preference!
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Outperformance Before Price Peaks
One cool feature is tracking whether Alpha outperforms before the price hits new highs. If Alpha breaks out but price lags, a “dot” is drawn, giving a heads-up on potential upcoming price moves.
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Background Color Highlighting
Background colors change dynamically based on performance:
Green for positive Alpha (outperformance).
Red for negative Alpha (underperformance). This gives a quick visual reference of the stock’s performance at a glance.
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Filling the Alpha Zone
The indicator fills the area between the Alpha line and zero. This shading helps highlight the magnitude of outperformance (or underperformance) and provides a quick visual cue about trends.
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Get Started
With all these features combined, the Outperformance indicator becomes a powerful tool for spotting leading stocks, tracking risk-adjusted performance, and identifying performance peaks before price catches up.
Z-Score Pairs TradingTitle: Z-Score Pairs Trading Indicator
Description:
This indicator implements a Z-score based pairs trading strategy, allowing traders to identify potential statistical arbitrage opportunities between two selected assets.
Key Features:
- Calculates Z-score for the price difference between any two user-selected symbols
- Visualizes Z-score with customizable thresholds for signals
- Generates long and short signals based on extreme Z-score values
- Adaptable to various markets including stocks, ETFs, and commodities
How It Works:
1. The indicator calculates the price difference between two selected symbols.
2. It then computes the Z-score of this difference, showing how far the current spread deviates from its historical average.
3. When the Z-score exceeds set thresholds (default ±2), the indicator generates trading signals.
Settings:
- Symbol A and Symbol B: Select any two tradable symbols to compare
- Lookback Period: Number of periods for calculating the moving average and standard deviation
Interpretation:
- Z-score above 2: Potential short signal (pair is likely overextended)
- Z-score below -2: Potential long signal (pair is likely oversold)
- Z-score between -2 and 2: Normal trading range, no signals
Visual Aids:
- Blue line: Z-score
- Dashed lines: Threshold levels at 0, ±1, and ±2
- Green triangles: Long signals
- Red triangles: Short signals
Disclaimer:
This indicator is for educational and research purposes only. Trading carries a high level of risk. Always conduct your own analysis and manage your risk appropriately before entering any trade.
Made by @marekfleisi
Fear Greed Zones by Relative Strength IndexThis is a visual modification of the relative Strength Index (RSI) to express extreme areas as fear and greed Zones.
// Input
rsiLength = input.int(14, "RSI Length", minval=1)
// RSI calculation
rsi = ta.rsi(close, rsiLength)
FEAR GREED ZONES
The "Fear Greed Zones Script" indicator is designed to help traders identify psychological levels of fear and greed in the market by utilising relative strength index. It primarily utilises the Relative Strength Index of price to gauge market sentiment, with the following key features:
Color-Codes
Dark Red: Indicates a greed zone , suggesting extreme overbought conditions (high risk) and a possible price reversal downward.
Dark Green: Represents a fear zone, indicating extreme oversold conditions (low risk) and potential for price reversal upward.
Yellow: Serves as a neutral zone with medium risk.
Usage
Market Sentiment Analysis: Traders can use the fear and greed zones to assess overall market sentiment, aligning their strategies with prevailing emotional biases. This helps in identifying potential entry and exit points based on market psychology.
Risk Management: Understanding fear or greed influences market behavior and allows traders to manage their risk more effectively with the knowledge of high or low risk areas; as they can anticipate potential reversals or continuations in price trends.
Conclusion
The "Fear Greed Zones" Script is a valuable tool for traders looking to leverage market psychology. By clearly identifying areas where fear or greed may be influencing price movements, it aids in making more informed trading decisions.
RSI Bars with Higher Timeframe - homburgresearchThe "RSI Bars with Higher Timeframe - homburgresearch" indicator is an advanced tool designed to provide traders with visual cues about overbought, oversold, and trend-related market conditions based on the Relative Strength Index (RSI). This version also includes an analysis of higher timeframes to enhance decision-making and provide a more comprehensive view of market trends.
Indicator Features:
The indicator colors the bars according to the RSI value and considers conditions on both the current and higher timeframes. A bullish trend is represented by gray bars when the RSI is above the 50 level, while a bearish trend is represented by black bars when the RSI is below the 50 level.
The indicator also offers coloring to highlight extreme overbought or oversold conditions. Extremely overbought areas (e.g., RSI > 80) are marked in red and may indicate particularly risky market conditions. Extremely oversold areas (e.g., RSI < 20) are marked in green and indicate potentially very attractive buying opportunities.
In addition to bar coloring, the indicator allows for background coloring based on the RSI values of a higher timeframe chosen by the user. This background helps identify larger trends, with red and green shading representing bearish and bullish conditions, respectively. Additionally, extreme overbought and oversold conditions can also be represented as background, providing traders with even clearer signals for risky or attractive market conditions. This feature allows traders to better align their trading decisions with the broader market trend and adds another layer of analysis.
All parameters are individually adjustable, including the RSI length, thresholds for overbought/oversold conditions, colors for different market states, and the choice of a higher timeframe for background analysis.
The indicator provides alerts that notify you when the RSI reaches certain thresholds, ensuring that you do not miss important trading opportunities. Alerts can be set for entering the overbought zone, the oversold zone, or extreme overbought or oversold conditions.
Using the RSI Bars with Higher Timeframe Indicator:
RSI-based signals can be easily identified through the color-coded bars, helping you recognize when the market might be overbought or oversold. This information can be used for potential counter-movements in the market.
Gray bars indicate that the RSI is above the 50 level, suggesting a bullish trend. Black bars indicate that the RSI is below the 50 level, suggesting a bearish trend. This information helps you better assess the current market direction.
The highlighting of extreme overbought or oversold conditions helps identify overheated markets, which may indicate short-term reversals or a possible continuation. The background color provides context from a higher timeframe and helps traders understand the larger market trend and make more informed decisions.
The alerts keep you updated when the market reaches specific RSI conditions, allowing you to react without constantly monitoring the chart.
Examples of Use:
If the bars are marked in gray, this indicates a bullish trend. It may be advisable to look for long positions or hold existing positions.
If the bars are marked in black, this indicates a bearish trend. It may be advisable to consider short positions or reduce existing long positions.
If the bars are marked in red (overbought), it could be an opportunity to take profits or consider short positions.
If the bars are marked in green (oversold), it could be a good opportunity to look for long positions.
If the background is shaded in green, it indicates a broader bullish trend on the higher timeframe, suggesting that it may be better to align trades in that direction.
If the background is shaded in red, it indicates a broader bearish trend on the higher timeframe, signaling caution for long trades and favoring short trades.
The RSI Bars with Higher Timeframe indicator is particularly useful for traders who base their decisions on RSI signals and want to integrate a multi-timeframe approach into their trading strategy for more comprehensive market analysis.
Note: This indicator is for informational purposes only and does not constitute a buy or sell decision. Any trading decision should be based on your own analysis and consideration of your individual risk profile.
Momentum Nexus Oscillator [UAlgo]The "Momentum Nexus Oscillator " indicator is a comprehensive momentum-based tool designed to provide traders with visual cues on market conditions using multiple oscillators. By combining four popular technical indicators—RSI (Relative Strength Index), VZO (Volume Zone Oscillator), MFI (Money Flow Index), and CCI (Commodity Channel Index)—this heatmap offers a holistic view of the market's momentum.
The indicator plots two lines: one representing the current chart’s combined momentum score and the other representing a higher timeframe’s (HTF) score, if enabled. Through smooth gradient color transitions and easy-to-read signals, the Momentum Nexus Heatmap allows traders to easily identify potential trend reversals or continuation patterns.
Traders can use this tool to detect overbought or oversold conditions, helping them anticipate possible long or short trade opportunities. The option to use a higher timeframe enhances the flexibility of the indicator for longer-term trend analysis.
🔶 Key Features
Multi-Oscillator Approach: Combines four popular momentum oscillators (RSI, VZO, MFI, and CCI) to generate a weighted score, providing a comprehensive picture of market momentum.
Dynamic Color Heatmap: Utilizes a smooth gradient transition between bullish and bearish colors, reflecting market momentum across different thresholds.
Higher Timeframe (HTF) Compatibility: Includes an optional higher timeframe input that displays a separate score line based on the same momentum metrics, allowing for multi-timeframe analysis.
Customizable Parameters: Adjustable RSI, VZO, MFI, and CCI lengths, as well as overbought and oversold levels, to match the trader’s strategy or preference.
Signal Alerts: Built-in alert conditions for both the current chart and higher timeframe scores, notifying traders when long or short entry signals are triggered.
Buy/Sell Signals: Displays visual signals (▲ and ▼) on the chart when combined scores reach overbought or oversold levels, providing clear entry cues.
User-Friendly Visualization: The heatmap is separated into four sections representing each indicator, providing a transparent view of how each contributes to the overall momentum score.
🔶 Interpreting Indicator:
Combined Score
The indicator generates a combined score by weighing the individual contributions of RSI, VZO, MFI, and CCI. This score ranges from 0 to 100 and is plotted as a line on the chart. Lower values suggest potential oversold conditions, while higher values indicate overbought conditions.
Color Heatmap
The indicator divides the combined score into four distinct sections, each representing one of the underlying momentum oscillators (RSI, VZO, MFI, and CCI). Bullish (greenish) colors indicate upward momentum, while bearish (grayish) colors suggest downward momentum.
Long/Short Signals
When the combined score drops below the oversold threshold (default is 26), a long signal (▲) is displayed on the chart, indicating a potential buying opportunity.
When the combined score exceeds the overbought threshold (default is 74), a short signal (▼) is shown, signaling a potential sell or short opportunity.
Higher Timeframe Analysis
If enabled, the indicator also plots a line representing the combined score for a higher timeframe. This can be used to align lower timeframe trades with the broader trend of a higher timeframe, providing added confirmation.
Signals for long and short entries are also plotted for the higher timeframe when its combined score reaches overbought or oversold levels.
🔶Purpose of Using Multiple Technical Indicators
The combination of RSI, VZO, MFI, and CCI in the Momentum Nexus Heatmap provides a comprehensive approach to analyzing market momentum by leveraging the unique strengths of each indicator. This multi-indicator method minimizes the limitations of using just one tool, resulting in more reliable signals and a clearer understanding of market conditions.
RSI (Relative Strength Index)
RSI contributes by measuring the strength and speed of recent price movements. It helps identify overbought or oversold levels, signaling potential trend reversals or corrections. Its simplicity and effectiveness make it one of the most widely used indicators in technical analysis, contributing to momentum assessment in a straightforward manner.
VZO (Volume Zone Oscillator)
VZO adds the critical element of volume to the analysis. By assessing whether price movements are supported by significant volume, VZO distinguishes between price changes that are driven by real market conviction and those that might be short-lived. It helps validate the strength of a trend or alert the trader to potential weakness when price moves are unsupported by volume.
MFI (Money Flow Index)
MFI enhances the analysis by combining price and volume to gauge money flow into and out of an asset. This indicator provides insight into the participation of large players in the market, showing if money is pouring into or exiting the asset. MFI acts as a volume-weighted version of RSI, giving more weight to volume shifts and helping traders understand the sustainability of price trends.
CCI (Commodity Channel Index)
CCI contributes by measuring how far the price deviates from its statistical average. This helps in identifying extreme conditions where the market might be overextended in either direction. CCI is especially useful for spotting trend reversals or continuations, particularly during market extremes, and for identifying divergence signals.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
RSI Fakeout Filter with SMA Confirmation [CHE] Introducing: RSI Fakeout Detection
Are you tired of being caught in fakeouts that can lead to frustrating losses? The RSI Fakeout Detection is here to enhance your trading strategy by filtering out false signals and providing you with more reliable entries. This innovative indicator is designed to help traders identify when market momentum, as indicated by the RSI, does not align with price movement – a key indicator of potential fakeouts!
What Does It Do?
The RSI Fakeout Detection focuses on one key goal: avoiding false signals. By monitoring when the RSI exceeds a customizable threshold (indicating strength) but the price remains below a moving average like the SMA, this indicator highlights situations where the market may seem strong, but the price action doesn't support that momentum. In other words, it saves you from those tricky fake breakouts.
Key Benefits:
1. Reduce Risk, Increase Confidence: Get an extra layer of protection against fakeouts by receiving signals only when both RSI and price confirm the market's true direction. Avoid entering false breakouts and trade with more confidence.
2. Dynamic Analysis of SMA Lengths: It doesn’t just rely on one SMA. The indicator automatically analyzes and sorts through different SMA lengths to find the most reliable one for your specific market condition, ensuring that you get the best possible signal.
3. Tailored for You: With customizable RSI thresholds, a choice of multiple moving average types (SMA, EMA, Bollinger Bands, and more), and vibrant color-coded visuals, this tool is built to fit your unique trading style and preferences.
4. Spot Fakeouts with Ease: Visual cues make it easy to see when the market might be tricking you. Labels, plotted lines, and a toggleable disclaimer keep everything transparent and easy to understand.
5. Friendly and Intuitive: Whether you’re new to trading or a seasoned pro, the RSI Fakeout Detection is designed to be simple and effective. The labels and plots are clear, the alerts are timely, and it seamlessly integrates into your chart without cluttering it.
Why Choose RSI Fakeout Detection?
- Accuracy and Precision: By combining RSI and SMA analysis, this indicator minimizes the risk of following false trends and entering trades too early.
- Save Time and Reduce Guesswork: No more spending hours trying to figure out which SMA length works best – the RSI Fakeout Detection does it for you!
- Peace of Mind: Avoiding fakeouts means fewer bad trades, which can lead to more consistent performance and less stress.
Transform the way you trade, and step into a more confident trading future with RSI Fakeout Detection . Whether you’re day trading or swing trading, this tool will give you an edge by helping you filter out the noise and make more informed decisions.
Best regards,
Chervolino
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.
Smart Momentum Relative StrengthSmart Momentum Relative Strength
Creator Journey
The Smart Momentum Relative Strength indicator is
created by Vishal R. Janjire , inspired by BharatTrader sir, and parameters guided by mentor stockedge founder Vivek Bajaj sir.
Reason? ...Why choose Smart Momentum Relative Strength.
1.Simple to Trade: This indicator simplifies trading decisions. You just need to follow the background color displayed on the chart. When the background is green, it signals a bullish trend, and when it turns red, it signals a bearish trend. For an even cleaner experience, you can untick the Relative Strength (RS) toggle in the indicator settings and focus purely on trading based on these background colors, making the process straightforward and efficient.
2.Unlock the power to compare any stock, share, commodity, forex or cryptocurrency against major indices like Nasdaq Composite, NYSE Composite, Bitcoin, NG, Gold, Silver, Crude oil, Nasdaq-100, Nifty 50, Hang Seng Index, FTSE 100, and many more! With the Comparative Relative Strength (RS) indicator,
You can easily change the default Nifty 50 comparative symbol to any index or asset of your choice, such as Gold, Silver, Crude Oil, or global benchmarks like the Dow Jones Industrial Average, DAX, Euronext 100, and SSE Composite.
This versatile tool allows traders to measure how well a base symbol (e.g., stock or crypto) performs relative to a chosen benchmark over a specified period. Whether you're analyzing the relative strength of Bitcoin against the Nasdaq-100 or comparing stocks to the S&P 500, this indicator provides valuable insights into market trends and outperforming assets.
The Smart Momentum Relative Strength combines several advanced technical analysis tools into one comprehensive Pine Script indicator designed to provide a nuanced view of market strength and trends. This script integrates Relative Strength (RS), Commodity Channel Index (CCI), and additional trend confirmation mechanisms to deliver actionable insights for traders.
Below are key points to understand before using this indicator:
Important Parameters:
1. Green Line: Represents stocks outperforming the comparative index, which is Nifty 50. However, do not apply this result directly to Nifty 50 itself, as it will not work exclusively on the Nifty 50 index.
2. Red Line: Indicates that the stock is underperforming relative to the Nifty 50 index.
3. Green Background: Signifies that both the current time momentum and higher time momentum are aligned, indicating an upward trend.
4. Red Background: Signifies that both the current time momentum and higher time momentum are aligned, indicating a downward trend.
5. Blank Space: This occurs when the two timeframes are not aligned, indicating market uncertainty and signaling a potential change in market direction, it means short time frame or current time frame changed its direction to opposite side.
Multi-Time Frame (MTF) Settings:
This indicator incorporates a default multi-time frame setup, as follows:
1 and 2 Minute chart = 5 Minute higher time frame
3 Minute chart = 15 Minute higher time frame
5 Minute chart = 15 Minute higher time frame
10 Minute chart = 60 Minute higher time frame
15 Minute chart = 60 Minute higher time frame
20 and 30 Minute chart = 120 Minute higher time frame
1 Hour chart = 4 Hour higher time frame
2 Hour chart = 4 Hour higher time frame
4 Hour chart = 1 Day higher time frame
1 Day chart = 1 Week higher time frame
1 Week chart = 1 Month higher time frame
1 Month chart = 12 Month higher time frame
For any other chart time frame = Day time is default time frame
1. Relative Strength (RS) Analysis:
Calculation: Measures the performance of the base symbol relative to a comparative symbol over a specified period.
Visualization: The RS value is plotted with color-coded lines to indicate bullish (green) or bearish (red) conditions based on crossovers. Users can customize the color based on value or trend direction.
Trend Analysis: A simple moving average (SMA) of RS is displayed to visualize trend strength and direction, with color changes to reflect rising or falling trends.
2. Commodity Channel Index (CCI):
- Current Timeframe CCI: Calculates the CCI for the current timeframe to assess price momentum.
- Higher Timeframe CCI: Computes the CCI for a higher timeframe to provide a broader market perspective.
- Background Color: Highlights the chart background in green or red based on whether both current and higher timeframe CCIs are above or below zero, respectively.
-Blank Space: This occurs when the two timeframes are not aligned, indicating market uncertainty and signaling a potential change in market direction, it means short time frame or current time frame changed its direction to opposite side.
Divergence Indicator Multi [TradingFinder] MACD AO RSI DIV Chart🔵 Introduction
🟣 What is Divergence in Financial Markets?
Divergence in technical analysis happens when the price of a stock moves in a direction opposite to certain indicators. This is a crucial concept in financial markets as it can signal either a trend reversal or a continuation of the current correction in the trend. Understanding divergence helps traders and analysts make more informed decisions.
🟣 Positive Regular Divergence (RD+)
A positive regular divergence occurs at the end of a downtrend, where two price lows form. This divergence appears when the price chart shows a new low, but the indicator does not follow, signaling potential buying opportunities.
Positive divergence indicates increased buying pressure and reduced selling pressure, making it a useful signal for forecasting price increases.
🟣 Negative Regular Divergence (RD-)
A negative regular divergence is seen during an uptrend when two price highs form. The price chart records a new high, but the indicator does not reflect this change, suggesting that a market downturn is likely.
This type of divergence shows strong selling pressure and weaker buying activity, which can help identify selling opportunities.
Both positive and negative divergences are powerful tools for identifying potential trend reversals and key support and resistance levels. For example, when an indicator trends upward while the price moves downward, this creates divergence, warning traders to reconsider their investment strategy.
🟣 Different Types of Divergence in Trading
1. Regular Divergence :
o Positive Regular Divergence (RD+)
o Negative Regular Divergence (RD-)
2. Hidden Divergence :
o Positive Hidden Divergence (HD+)
o Negative Hidden Divergence (HD-)
3.Time Divergence.
Note : This guide focuses specifically on Regular Divergence.
🟣 What is Regular Divergence?
Regular Divergence, often referred to as convergence, occurs when price action and indicators show conflicting patterns, usually signaling the end of a trend. Detecting regular divergence helps traders anticipate potential trend reversals or the formation of reversal patterns.
🔵 How to Use
To optimize the detection of divergence, you can adjust the Fractal Period to specify the length of time for identifying divergence patterns.
Additionally, with the Divergence Detection Method, you can select oscillators like the MACD, RSI, or AO to base divergence detection on.
Divergence in MACD :
MACD divergence occurs when the price chart forms an opposite pattern compared to the MACD line, indicating a potential price reversal.
Divergence in RSI :
In a downtrend, if the price chart forms two consecutive lows with the second lower than the first, but the RSI shows two lows with the second higher, this indicates positive regular divergence, which is a buy signal.
On the other hand, during an uptrend, if the price forms two highs with the second higher than the first, but the RSI shows the second high lower, this points to negative regular divergence, indicating a sell signal.
Divergence in AO (Awesome Oscillator) :
The AO indicator calculates histograms using the difference between 5-period and 34-period simple moving averages. It compares peaks and troughs of these histograms with price movements, detecting divergence and plotting lines and arrows to signal divergence.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
Relative Strength Index Custom [BRTLab]RSI Custom — Strategy-Oriented RSI with Multi-Timeframe Precision
The Relative Strength Index Custom is designed with a focus on developing robust trading strategies. This powerful indicator leverages the logic of calculating RSI on higher timeframes (HTFs) while allowing traders to execute trades on lower timeframes (LTFs). Its unique ability to extract accurate RSI data from higher timeframes without waiting for those candles to close provides a real-time advantage, eliminating the "look-ahead" bias that often
distorts backtest results.
Key Features
Multi-Timeframe RSI for Strategy Development
This indicator stands out by allowing you to calculate RSI on higher timeframes, even while operating on lower timeframe charts. This means you can, for example, calculate RSI on the 1-hour or daily chart and execute trades on a 1-minute chart without needing to wait for the higher timeframe candle to close. This feature is crucial for strategy-building as it eliminates backtesting issues where data from the future is inadvertently used, providing more reliable backtest results.
Example: On a 15-minute chart, you can use the 1-hour RSI to open positions based on higher timeframe momentum, but you get this signal in real-time, improving timing and accuracy.
Accurate Data Extraction from Higher Timeframes
The indicator's custom logic ensures that accurate RSI data is retrieved from higher timeframes, providing an edge by delivering timely information for lower timeframe decisions. This prevents delayed signals often encountered when waiting for higher timeframe candles to close, which is crucial for high-frequency and intraday traders looking for precise entries based on multi-timeframe data.
Customizable RSI Settings for Strategy Tuning
The script offers full customization of the RSI, including length and source price (close, open, high, or low), allowing traders to tailor the RSI to fit specific trading strategies. These settings are housed in the "RSI Settings" section, enabling precise adjustments that align with your overall strategy.
No Future-Looking in Backtests
Traditional backtests often suffer from "future-looking" bias, where calculations unintentionally use data from candles that haven’t yet closed. This indicator is specifically designed to prevent such issues by calculating RSI values in real-time. This is particularly important when creating and testing strategies, as it ensures that the conditions under which trades would have been made are accurately represented in historical tests.
RSI-Based Moving Average for Additional Filtering
The built-in moving average (MA) based on RSI values helps filter out noise, making it easier to identify genuine trend shifts. This is particularly useful in strategies where moving average crossovers act as additional confirmation for trade entries and exits.
Overbought and Oversold Zone Detection
Visual gradient fills on the RSI chart help traders identify overbought and oversold zones (above 70 and below 30, respectively). These zones are crucial for timing reversal trades or confirming momentum-based strategies.
How This Indicator Enhances Your Strategy
Increased Accuracy for Intraday Strategies
For traders who operate on lower timeframes, using higher timeframe RSI data gives a broader perspective of market momentum while still maintaining precision for short-term trade entries. The real-time data extraction means you don't need to wait for HTF candles to close, which can dramatically improve your entry timing.
Strategic Edge in Backtesting
One of the greatest challenges in backtesting strategies is avoiding future-looking bias. This indicator is built to overcome this by using real-time multi-timeframe data, ensuring the accuracy and reliability of historical strategy testing, which provides confidence in your strategies when applied to live markets.
Advanced Filtering for Trend Strategies
By combining the RSI values with a customizable moving average (MA) and visualizing key momentum zones with overbought/oversold fills, the indicator allows for more refined trade filters. This ensures that signals generated by your strategy are based on solid momentum data and not short-term price fluctuations.
Cubic Bezier Curve RSI [CBCR]Overview :
Introducing the Cubic Bézier Curve RSI – an innovative approach to smoothing the traditional RSI using cubic Bézier curves. This indicator provides traders with a smoother, adaptive version of the RSI that can help filter out noise and better highlight market trends.
Key Features:
Bézier Curve : the script uses cubic Bézier curves to create a smoothed version of the RSI, offering a more visually appealing and potentially more insightful representation of market momentum.
Customizable Settings: Users can adjust the Bézier Curve Length, Impact Factor, and color modes, allowing full customization of the smoothing effect and visualization.
Color-coded Trend Indicator: The smoothed RSI is displayed with colors that indicate potential bullish or bearish trends, helping traders quickly assess market conditions.
Overbought/Oversold Lines: Option to display overbought and oversold levels for better identification of market extremes.
Parameters:
RSI Length: Set the length for the traditional RSI calculation (default is 14).
Bézier Curve Length: Adjust the length of the Bézier curve used to smooth the RSI (default is 20).
Impact Factor: Control the influence of the Bézier smoothed values versus the original RSI values (default is 0.5, ranging from 0.0 to 1.0).
Overbought/Oversold Lines: Option to show overbought (default: 70) and oversold (default: 30) lines for easier identification of extreme conditions.
Color Mode: Choose between "Trend Following" and "Overbought/Oversold" modes for line color indication.
Display Settings: Color customization for bullish and bearish phases allows better visual differentiation.
How It Works:
The CBCR uses four control points derived from historical RSI values over a user-defined length. It then applies the cubic Bezier formula to generate a sequence of points representing a smoothed version of the RSI over this range.
The Bezier curve is recalculated each time a specific number of bars (as defined by the Bezier Curve Length) have passed, helping reduce noise while retaining key trend information.
The result is a smoothed RSI that combines the adaptability of cubic Bezier curves with the familiar oscillation of the RSI, making it potentially more robust for identifying shifts in market sentiment.
Visuals:
Smoothed RSI Line: Plotted on the indicator pane, the line changes color depending on the chosen color mode:
Trend Following Mode: Color changes based on whether the smoothed RSI is above or below the 50-level.
Overbought/Oversold Mode: Color changes based on whether the smoothed RSI is above the overbought level or below the oversold level.
Bullish Color: Configurable (default: cyan).
Bearish Color: Configurable (default: red).
Overbought/Oversold Lines: Horizontal lines at user-defined levels (default: 70 for overbought, 30 for oversold) for easy identification of market extremes.
Usage:
The CBCR can be used like a traditional RSI but with a smoother output that may help traders avoid false signals generated by sudden price spikes. For instance:
Look for crossovers around the 50 level as a signal for changing momentum.
Use the overbought and oversold levels to identify potential reversal zones.
Observe the color change of the line for an immediate visual cue on current sentiment.
Options Series - Index Analysis [MasterPiece]
Powerful Insights 🚀:
This script utilizes multiple technical indicators to provide a comprehensive view of stock trends, which increases the reliability of trading signals.
This script also designed to perform index and stock analysis by comparing price movements to moving averages (MA20) and volume-weighted average price (VWAP).
By analyzing a set of top-weighted stocks within an index, the script offers a macro-level view while also delivering stock-specific insights. This dual focus enhances its utility for traders who need to understand both individual stock movements and broader market dynamics.
⭐ Originality: The script presents a unique fusion of multiple indicators with a data-driven approach to analyzing top-weighted stocks in major indices like Nifty and BankNifty. The integration of widely-used technical analysis tools, such as exponential and simple moving averages (EMA, SMA), volume-weighted average price (VWAP), and volume-body size comparisons, offers a holistic framework for traders. By focusing on the top five stocks in the indices, it leverages weightage-based performance analysis, adding a strategic dimension to index trading. This approach not only evaluates individual stock performance but also synthesizes broader market trends.
⭐ Usefulness: This script serves traders who seek a multi-dimensional method for analyzing both index and stock performance. Its key features include:
Bullish and Bearish Signals: The relationship between price, moving averages (MA20), and VWAP identifies directional trends, generating buy/sell signals for both individual stocks and the overall index.
Volume and Candle Body Analysis: By comparing candle body size with volume, the script provides deeper insights into trend strength and market conviction. This allows traders to gauge whether price movements are supported by sufficient trading volume.
Customization: Users have the flexibility to input specific index and stock symbols, making the script adaptable for different markets and instruments beyond just Nifty and BankNifty.
Signal Overlay: The ability to overlay bar color and volume signals directly on the price chart ensures better trend visualization, offering clear and immediate visual cues for potential trading setups.
⭐ Justification for Mashup: The combination of multiple indicators is logical and complementary. Each component serves a distinct purpose that enhances the overall system:
Trend Identification: Moving averages and VWAP provide insights into short and long-term trends, giving traders a reliable baseline for price direction.
Conviction: The inclusion of volume and candle body size comparisons gives additional weight to price action, allowing traders to confirm whether a trend is backed by meaningful market activity.
⭐ Color Customization for Enhanced Visualization:
The script defines custom colors for various conditions and candles, improving clarity for bullish and bearish trends.
Green for Bullish: Dark green for regular bullish candles, and fluorescent green for stronger bullish signals.
Red for Bearish: Dark red for regular bearish candles, and fluorescent red for stronger bearish signals.
Neutral Conditions: Fluorescent yellow is used for neutral conditions.
⭐ Index and Top Stocks Analysis:
This section analyzes top-weighted stocks for indices ( NSE:NIFTY and NSE:BANKNIFTY ), with NSE:BANKNIFTY being used as the default.
Top Stocks for NSE:NIFTY : HDFCBANK, ICICIBANK, RELIANCE, INFY, ITC.
Top Stocks for NSE:BANKNIFTY : HDFCBANK, ICICIBANK, KOTAKBANK, AXISBANK, SBIN.
Customizable Input: Users can modify the index and stock symbols via input.symbol.
⭐ Signal Generation Based on MA20 and VWAP:
The conditions for bullish or bearish signals are based on the relationship between the stock's close price, MA20, and VWAP.
Bullish Signal: Close price greater than both MA20 and VWAP.
Bearish Signal: Close price less than both MA20 and VWAP.
⭐ Volume Bar Signal for Market Activity:
The script analyzes candle body size and volume to detect significant market movements.
Body Size and Volume Comparison: It checks if the current candle’s body size or volume is greater than the moving average of body size or volume over the past 74 bars.
Green Candle (GC) and Red Candle (RC): Boolean conditions to track whether the close price is higher or lower than the open price.
⭐ Average Signals for Strong Trends:
The script calculates average bullish or bearish signals based on the majority of candles being green or red and significant body size or volume.
Bullish Average Signal: At least 4 out of 6 stocks exhibit bullish conditions (green candles, large bodies, or high volume).
Bearish Average Signal: Similar logic for bearish signals with red candles.
⭐ Overlay of Volume Bar Signals:
The plotshape function overlays the bullish and bearish volume bar signals on the chart, using color and shape to indicate trend changes.
🚀 Conclusion:
This Pine Script code provides a robust framework for index analysis based on top 5 weighted stocks, using two primary indicators—MA20 (20-period Moving Average) and VWAP (Volume Weighted Average Price).
Market Bias Identification: The script identifies bullish and bearish conditions for each stock based on whether the close price is above or below MA20 and VWAP.
Volume and Body Size Comparison: It checks if the current candle’s body size or volume exceeds the average to determine significant market moves.
Visualization with Color & Signals: It overlays color signals for bullish (fluorescent green) and bearish (fluorescent red) markets and provides triangle markers for strong volume-based signals.
Top Stock Analysis: The script provides analysis of top five weighted stocks in the selected index, enhancing precision for broader index analysis.
Trend, Momentum and Price value analysis [deepakks444]Trend, Momentum, and Price Value Analysis
This indicator combines several key technical analysis tools to help traders evaluate the market's trend strength, momentum, and overall price behavior. It uses a variety of signals to generate a "Buy," "Sell," or "No Clear Indication" based on multiple indicators and plots them directly on the chart. A customizable table also summarizes these signals, making it easy to interpret the market conditions in real-time.
Key Features:
VWAP (Volume-Weighted Average Price): Indicates whether the price is above or below the VWAP line, helping to identify buying or selling opportunities based on fair value.
Alligator Indicator: Utilizes three simple moving averages (SMAs) to track trend direction, providing a clear "Buy" or "Sell" signal when the averages are aligned.
Supertrend: A widely-used trend-following indicator, this script identifies potential buy or sell zones based on the price's relationship with the Supertrend line.
20-period Moving Average (MA): A simple moving average to track the overall trend direction. The signal is based on the price crossing above or below the MA.
ADX (Average Directional Index): Measures the strength of the trend. A reading above 25 indicates a "Buy" signal, while a reading below suggests a "Sell."
RSI (Relative Strength Index): Generates a buy signal when RSI exceeds 60 and a sell signal when it drops below 40. Values between 40 and 60 indicate a neutral condition.
MACD (Moving Average Convergence Divergence): Provides a signal for buying when the MACD line crosses above the signal line, and selling when it crosses below.
Volume Signal: Compares current volume against the 20-period moving average to identify significant volume spikes. This helps in determining if the market is supported by strong volume.
Customization Options:
Moving Average Length: Customize the 20-period MA length to better fit your trading style or the asset you’re analyzing.
Supertrend Settings: Adjust the Supertrend factor and ATR period for different timeframes or volatility environments.
Table Position: Customize where the signal table is displayed on the chart (Top Right, Top Left, Bottom Right, or Bottom Left).
Table Appearance: Set the table background color and choose between small or tiny text size for better readability.
Signal Summary:
The indicator computes a combined signal based on the number of "Buy" or "Sell" signals from the individual indicators. If 5 or more indicators suggest a "Buy" or "Sell," the table will display a combined signal for easier decision-making. This feature consolidates the signals into one straightforward output, helping you filter noise and act on clear trends.
Table Display:
The customizable table organizes the signals of the key indicators, showing:
Indicator: Lists all the indicators in use, such as VWAP, Alligator, Supertrend, etc.
Signal: Displays "Buy," "Sell," or "Neutral" for each indicator based on the current market conditions.
Intended Use:
This script is designed to help traders monitor multiple technical indicators at once, giving them a clearer view of the market’s trend strength, momentum, and volatility. While it simplifies the process of interpreting various signals, users should use it in combination with their own research and risk management strategies.
Disclaimer: This script is for educational purposes only and should not be considered financial advice. All trading involves risk, and the performance of an indicator in the past does not guarantee future results. Always perform due diligence and use proper risk management techniques.
3 days ago
Release Notes
A "Buy" triangle is plotted below the bar if the signal changes to "Buy".
A "Sell" triangle is plotted above the bar if the signal changes to "Sell".
Script Name: Trend, Momentum, and Price Value Analysis
The Trend, Momentum, and Price Value Analysis script provides a multi-faceted approach to market analysis, combining several technical indicators into a single tool. This script offers an easy-to-interpret table summarizing various indicator signals, along with visual buy/sell signals on the chart.
Key Features:
VWAP (Volume Weighted Average Price):
The VWAP provides insights into whether the current price is above or below the average weighted price, helping traders identify potential buy or sell opportunities.
Alligator Indicator (Simplified):
Using three simple moving averages (SMAs), this tool helps identify the beginning of trends and potential buy/sell zones based on the Alligator jaw, teeth, and lips.
Supertrend:
A trend-following indicator that determines whether the market is in a bullish or bearish phase based on ATR and factor inputs. The Supertrend line is plotted on the chart.
20-period Moving Average (MA):
A basic moving average that assists in gauging price direction and the overall trend.
ADX (Average Directional Index):
Helps identify the strength of a trend. A value above 25 indicates a strong trend.
RSI (Relative Strength Index):
Measures momentum by identifying overbought and oversold conditions. A signal is triggered when RSI is above 60 (buy) or below 40 (sell).
MACD (Moving Average Convergence Divergence):
A momentum indicator that provides signals when the MACD line crosses the signal line.
Volume Signal:
Compares the current volume with a 20-period average to determine if volume supports the current trend direction.
Signal Table:
A table is generated on the chart, displaying real-time signals from each of the above indicators. The table is customizable with background colors and text sizes.
The position of the table can be set to any corner of the chart for convenience.
Combined Signal Logic:
The script calculates a Combined Signal based on the majority of buy or sell signals across all the indicators. If 5 or more indicators give a buy or sell signal, a combined signal is generated.
Buy/Sell Signal Plots:
The script plots buy (green triangle) and sell (red triangle) signals on the chart based on the combined signal when transitioning from a previous opposite signal.
Customizable Inputs:
Users can customize the length of the moving averages, adjust the background and text colors of the table, and choose the position of the table on the chart.
Gabriel's Cyclic Smoothed RSI [Enhanced]Overview
Gabriel's Cyclic Smoothed RSI (short title: cRSI ) is a sophisticated technical indicator developed to provide traders with deeper insights into market rhythms and price momentum. Building upon the traditional Relative Strength Index (RSI), this enhanced version incorporates dynamic cycle analysis, divergence detection, and optional stochastic oscillators to deliver a more nuanced understanding of market conditions.
Key Features
Cyclic Smoothed RSI (cRSI):
Adaptive Momentum: The cRSI adapts to the dominant market cycle, providing a smoothed RSI that reacts dynamically to price changes.
Ultra-Smooth & Zero-Lag: Designed to minimize lag, ensuring timely signals that closely follow price movements.
Accurate Divergence Detection: Identifies both regular and hidden bullish/bearish divergences, enhancing signal reliability.
Dynamic Overbought/Oversold Bands:
Customizable Thresholds: Set dynamic overbought and oversold levels based on market rhythm analysis.
Adaptive Bands: Bands adjust according to the dominant cycle, offering a more accurate representation of market extremes.
Stochastic cRSI & KDJ Oscillator (Optional):
Enhanced Oscillators: Incorporate stochastic and KDJ oscillators for additional momentum analysis.
Ribbon Displays: Visual ribbons provide clarity on oscillator trends and potential reversal points.
Divergence Detection:
Regular & Hidden Divergences: Detects both regular and hidden bullish/bearish divergences to anticipate potential trend reversals.
Customizable Lookback: Adjust pivot lookback periods to fine-tune divergence sensitivity.
Visual Enhancements:
Triangles & Labels: Visual signals in the form of triangles and labels indicate buy/sell opportunities and divergence events.
Bar Coloring: Option to color bars based on signal strength, providing immediate visual cues.
Alert Conditions:
Custom Alerts: Set up alerts for various signal types, including strong buy/sell signals and divergence events, ensuring you never miss critical market movements.
Input Settings
cRSI Settings
Source: Select the data source for calculations (e.g., Close, Open, High, Low, HLC3, OHLC4).
Dominant Cycle Length: Define the dominant market cycle length based on rhythm analysis.
Vibration: Adjusts the sensitivity of the cRSI to price changes.
Leveling %: Determines the percentage level for dynamic band adjustments.
Show cRSI Plot: Toggle the display of the cRSI line.
Show Cyclic Smoothed Bands: Toggle the display of dynamic overbought and oversold bands.
Show Trend Fill: Enable or disable the trend fill cloud between upper and lower bands.
MA Settings
MA Type: Choose the type of Moving Average (SMA, Bollinger Bands, EMA, SMMA (RMA), WMA, VWMA) to smooth the cRSI.
MA Length: Set the length of the Moving Average.
BB StdDev: Define the standard deviation multiplier for Bollinger Bands.
Show cRSI-based MA: Toggle the display of the cRSI-based Moving Average line.
Stochastic Settings
Show Stochastic cRSI: Enable the stochastic oscillator based on cRSI.
Ribbon: Enable ribbon display for the Stochastic oscillator.
Show KDJ: Toggle the display of the KDJ oscillator.
KDJ Ribbon: Enable ribbon display for the KDJ oscillator.
Stochastic Length: Set the length for the Stochastic calculation.
%K Smoothing: Define the smoothing period for %K.
%D Smoothing: Define the smoothing period for %D.
Stoch Scaling %: Adjusts the vertical scaling of the stochastic to prevent distortion.
Overbought/Oversold Settings
Overbought: Set the Overbought threshold for the cRSI.
OB Extreme: Define the Extreme Overbought threshold for the Stochastic cRSI.
Oversold: Set the Oversold threshold for the cRSI.
OS Extreme: Define the Extreme Oversold threshold for the Stochastic cRSI.
Divergence Settings
Pivot Lookback Right: Number of bars to the right of the pivot for divergence detection.
Pivot Lookback Left: Number of bars to the left of the pivot for divergence detection.
Max of Lookback Range: Maximum number of bars to look back for divergence detection.
Min of Lookback Range: Minimum number of bars to look back for divergence detection.
Plot Bullish: Enable plotting of bullish divergence signals.
Plot Hidden Bullish: Enable plotting of hidden bullish divergence signals.
Plot Bearish: Enable plotting of bearish divergence signals.
Plot Hidden Bearish: Enable plotting of hidden bearish divergence signals.
Delay Plot Until Candle is Closed: Prevents repainting by delaying the plotting of divergence signals until the candle is fully closed.
