RSI and Smoothed RSI Bull Div Strategy [BigBitsIO]This strategy focuses on finding a low RSI value, then targeting a low Smoothed RSI value while the price is below the low RSI in the lookback period to trigger a buy signal.
Features Take Profit, Stop Loss, and Plot Target inputs. As well as many inputs to manage how the RSI and Smoothed RSI are configured within the strategy.
Explanation of all the inputs
Take Profit %: % change in price from position entry where strategy takes profit
Stop Loss %: % change in price from position entry where strategy stops losses
RSI Lookback Period: # of candles used to calculate RSI
Buy Below Lowest Low In RSI Divergence Lookback Target %: % change in price from lowest RSI candle in divergence lookback if set
Source of Buy Below Target Price: Source of price (close, open, high, low, etc..) used to calculated buy below %
Smoothed RSI Lookback Period: # of candles used to calculate RSI
RSI Currently Below: Value the current RSI must be below to trigger a buy
RSI Divergence Lookback Period: # of candles used to lookback for lowest RSI in the divergence lookback period
RSI Lowest In Divergence Lookback Currently Below: Require the lowest RSI in the divergence lookback to be below this value
RSI Sell Above: If take profit or stop loss is not hit, the position will sell when RSI rises above this value
Minimum SRSI Downtrend Length: Require that the downtrend length of the SRSI be this value or higher to trigger a buy
Smoothed RSI Currently Below: Value the current SRSI must be below to trigger a buy
Cerca negli script per "rsi"
RSI Trend Following StrategyOverview
The RSI Trend Following Strategy utilizes Relative Strength Index (RSI) to enter the trade for the potential trend continuation. It uses Stochastic indicator to check is the price is not in overbought territory and the MACD to measure the current price momentum. Moreover, it uses the 200-period EMA to filter the counter trend trades with the higher probability. The strategy opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Two layers trade filtering system: Strategy utilizes MACD and Stochastic indicators measure the current momentum and overbought condition and use 200-period EMA to filter trades against major trend.
Trailing take profit level: After reaching the trailing profit activation level script activates the trailing of long trade using EMA. More information in methodology.
Wide opportunities for strategy optimization: Flexible strategy settings allows users to optimize the strategy entries and exits for chosen trading pair and time frame.
Methodology
The strategy opens long trade when the following price met the conditions:
RSI is above 50 level.
MACD line shall be above the signal line
Both lines of Stochastic shall be not higher than 80 (overbought territory)
Candle’s low shall be above the 200 period EMA
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with trailing EMA(by default = 20 period). If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 1.75)
ATR Trailing Profit Activation Level (by default = 2.25)
MACD Fast Length (by default = 12, period of averaging fast MACD line)
MACD Fast Length (by default = 26, period of averaging slow MACD line)
MACD Signal Smoothing (by default = 9, period of smoothing MACD signal line)
Oscillator MA Type (by default = EMA, available options: SMA, EMA)
Signal Line MA Type (by default = EMA, available options: SMA, EMA)
RSI Length (by default = 14, period for RSI calculation)
Trailing EMA Length (by default = 20, period for EMA, which shall be broken close the trade after trailing profit activation)
Justification of Methodology
This trading strategy is designed to leverage a combination of technical indicators—Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Stochastic Oscillator, and the 200-period Exponential Moving Average (EMA)—to determine optimal entry points for long trades. Additionally, the strategy uses the Average True Range (ATR) for dynamic risk management to adapt to varying market conditions. Let's look in details for which purpose each indicator is used for and why it is used in this combination.
Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the speed and change of price movements in a financial market. It helps traders identify whether an asset is potentially overbought (overvalued) or oversold (undervalued), which can indicate a potential reversal or continuation of the current trend.
How RSI Works? RSI tracks the strength of recent price changes. It compares the average gains and losses over a specific period (usually 14 periods) to assess the momentum of an asset. Average gain is the average of all positive price changes over the chosen period. It reflects how much the price has typically increased during upward movements. Average loss is the average of all negative price changes over the same period. It reflects how much the price has typically decreased during downward movements.
RSI calculates these average gains and losses and compares them to create a value between 0 and 100. If the RSI value is above 70, the asset is generally considered overbought, meaning it might be due for a price correction or reversal downward. Conversely, if the RSI value is below 30, the asset is considered oversold, suggesting it could be poised for an upward reversal or recovery. RSI is a useful tool for traders to determine market conditions and make informed decisions about entering or exiting trades based on the perceived strength or weakness of an asset's price movements.
This strategy uses RSI as a short-term trend approximation. If RSI crosses over 50 it means that there is a high probability of short-term trend change from downtrend to uptrend. Therefore RSI above 50 is our first trend filter to look for a long position.
The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in an asset's price.
The MACD consists of three components:
MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line = 12 period EMA − 26 period EMA
Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell).
Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum.
This strategy uses MACD as a second short-term trend filter. When MACD line crossed over the signal line there is a high probability that uptrend has been started. Therefore MACD line above signal line is our additional short-term trend filter. In conjunction with RSI it decreases probability of following false trend change signals.
The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions.
It consists of two lines:
%K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods.
%D: A smoothed moving average of %K, often used as a signal line.
This strategy uses stochastic to define the overbought conditions. The logic here is the following: we want to avoid long trades in the overbought territory, because when indicator reaches it there is a high probability that the potential move is gonna be restricted.
The 200-period EMA is a widely recognized indicator for identifying the long-term trend direction. The strategy only trades in the direction of this primary trend to increase the probability of successful trades. For instance, when the price is above the 200 EMA, only long trades are considered, aligning with the overarching trend direction.
Therefore, strategy uses combination of RSI and MACD to increase the probability that price now is in short-term uptrend, Stochastic helps to avoid the trades in the overbought (>80) territory. To increase the probability of opening long trades in the direction of a main trend and avoid local bounces we use 200 period EMA.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -3.94%
Maximum Single Profit: +15.78%
Net Profit: +1359.21 USDT (+13.59%)
Total Trades: 111 (36.04% win rate)
Profit Factor: 1.413
Maximum Accumulated Loss: 625.02 USDT (-5.85%)
Average Profit per Trade: 12.25 USDT (+0.40%)
Average Trade Duration: 40 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 2h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
RSI & Backed-Weighted MA StrategyRSI & MA Strategy :
INTRODUCTION :
This strategy is based on two well-known indicators that work best together: the Relative Strength Index (RSI) and the Moving Average (MA). We're going to use the RSI as a trend-follower indicator, rather than a reversal indicator as most are used to. To the signals sent by the RSI, we'll add a condition on the chart's MA, filtering out irrelevant signals and considerably increasing our winning rate. This is a medium/long-term strategy. There's also a money management method enabling us to reinvest part of the profits or reduce the size of orders in the event of substantial losses.
RSI :
The RSI is one of the best-known and most widely used indicators in trading. Its purpose is to warn traders when an asset is overbought or oversold. It was designed to send reversal signals, but we're going to use it as a trend indicator by increasing its length to 20. The RSI formula is as follows :
RSI (n) = 100 - (100 / (1 + (H (n)/L (n))))
With n the length of the RSI, H(n) the average of days closing above the open and L(n) the average of days closing below the open.
MA :
The Moving Average is also widely used in technical analysis, to smooth out variations in an asset. The SMA formula is as follows :
SMA (n) = (P1 + P2 + ... + Pn) / n
where n is the length of the MA.
However, an SMA does not weight any of its terms, which means that the price 10 days ago has the same importance as the price 2 days ago or today's price... That's why in this strategy we use a RWMA, i.e. a back-weighted moving average. It weights old prices more heavily than new ones. This will enable us to limit the impact of short-term variations and focus on the trend that was dominating. The RWMA used weights :
The 4 most recent terms by : 100 / (4+(n-4)*1.30)
The other oldest terms by : weight_4_first_term*1.30
So the older terms are weighted 1.30 more than the more recent ones. The moving average thus traces a trend that accentuates past values and limits the noise of short-term variations.
PARAMETERS :
RSI Length : Lenght of RSI. Default is 20.
MA Type : Choice between a SMA or a RWMA which permits to minimize the impact of short term reversal. Default is RWMA.
MA Length : Length of the selected MA. Default is 19.
RSI Long Signal : Minimum value of RSI to send a LONG signal. Default is 60.
RSI Short signal : Maximum value of RSI to send a SHORT signal. Default is 40.
ROC MA Long Signal : Maximum value of Rate of Change MA to send a LONG signal. Default is 0.
ROC MA Short signal : Minimum value of Rate of Change MA to send a SHORT signal. Default is 0.
TP activation in multiple of ATR : Threshold value to trigger trailing stop Take Profit. This threshold is calculated as multiple of the ATR (Average True Range). Default value is 5 meaning that to trigger the trailing TP the price need to move 5*ATR in the right direction.
Trailing TP in percentage : Percentage value of trailing Take Profit. This Trailing TP follows the profit if it increases, remaining selected percentage below it, but stops if the profit decreases. Default is 3%.
Fixed Ratio : This is the amount of gain or loss at which the order quantity is changed. Default is 400, which means that for each $400 gain or loss, the order size is increased or decreased by a user-selected amount.
Increasing Order Amount : This is the amount to be added to or subtracted from orders when the fixed ratio is reached. The default is $200, which means that for every $400 gain, $200 is reinvested in the strategy. On the other hand, for every $400 loss, the order size is reduced by $200.
Initial capital : $1000
Fees : Interactive Broker fees apply to this strategy. They are set at 0.18% of the trade value.
Slippage : 3 ticks or $0.03 per trade. Corresponds to the latency time between the moment the signal is received and the moment the order is executed by the broker.
Important : A bot has been used to test the different parameters and determine which ones maximize return while limiting drawdown. This strategy is the most optimal on BITSTAMP:ETHUSD with a timeframe set to 6h. Parameters are set as follows :
MA type: RWMA
MA Length: 19
RSI Long Signal: >60
RSI Short Signal : <40
ROC MA Long Signal : <0
ROC MA Short Signal : >0
TP Activation in multiple ATR : 5
Trailing TP in percentage : 3
ENTER RULES :
The principle is very simple:
If the asset is overbought after a bear market, we are LONG.
If the asset is oversold after a bull market, we are SHORT.
We have defined a bear market as follows : Rate of Change (20) RWMA < 0
We have defined a bull market as follows : Rate of Change (20) RWMA > 0
The Rate of Change is calculated using this formula : (RWMA/RWMA(20) - 1)*100
Overbought is defined as follows : RSI > 60
Oversold is defined as follows : RSI < 40
LONG CONDITION :
RSI > 60 and (RWMA/RWMA(20) - 1)*100 < -1
SHORT CONDITION :
RSI < 40 and (RWMA/RWMA(20) - 1)*100 > 1
EXIT RULES FOR WINNING TRADE :
We have a trailing TP allowing us to exit once the price has reached the "TP Activation in multiple ATR" parameter, i.e. 5*ATR by default in the profit direction. TP trailing is triggered at this point, not limiting our gains, and securing our profits at 3% below this trigger threshold.
Remember that the True Range is : maximum(H-L, H-C(1), C-L(1))
with C : Close, H : High, L : Low
The Average True Range is therefore the average of these TRs over a length defined by default in the strategy, i.e. 20.
RISK MANAGEMENT :
This strategy may incur losses. The method for limiting losses is to set a Stop Loss equal to 3*ATR. This means that if the price moves against our position and reaches three times the ATR, we exit with a loss.
Sometimes the ATR can result in a SL set below 10% of the trade value, which is not acceptable. In this case, we set the SL at 10%, limiting losses to a maximum of 10%.
MONEY MANAGEMENT :
The fixed ratio method was used to manage our gains and losses. For each gain of an amount equal to the value of the fixed ratio, we increase the order size by a value defined by the user in the "Increasing order amount" parameter. Similarly, each time we lose an amount equal to the value of the fixed ratio, we decrease the order size by the same user-defined value. This strategy increases both performance and drawdown.
Enjoy the strategy and don't forget to take the trade :)
RSI+CMO Hybrid StrategyThis strategy is based on the RSI+CMO Hybrid Index I created. I modified both the original RSI and CMO so that the RSI+CMO Index value ranges from -100 to +100 and defined as follows. When the RSI+CMO Hybrid Index values close above the Bull Level and below the Bear Level, the strategy will trigger long and short signals respectively. This newly defined hybrid RSI+CMO indicator showed better win rates and better profits than the original CMO strategy. The default setting for this strategy is optimized for an 8-hour candle. For candles at different times, try to find the optimal value yourself.
* I was going to open the script, but recently there was a case of stealing my script and publishing it without permission, so I decided not to disclose it.
▶ Modified RSI = Original RSI - 50
Therefore,
Original RSI (0 ~ 100) → Modified RSI (-50 ~ +50)
▶ Modified CMO = Original CMO * 0.5
Therefore,
Original CMO (-100 ~ +100) → Modified CMO (-50 ~ +50)
▶ RSI+CMO Hybrid Index = Modified RSI + Modified CMO
Therefore,
RSI+CMO Hybrid Index (-100 ~ +100)
________________________________________________________
이 전략은 기존의 RSI와 CMO 지표를 수정하여 새롭게 정의한 하이브리드 RSI+CMO 지표를 기반으로 만들어졌습니다. 지표 값의 범위가 -100에서 100의 범위를 가질 수 있도록 기존의 RSI와 CMO를 수정하여 만들었습니다. RSI+CMO Hybrid Index 값이 Bull Level 이상과 Bear Level 아래에서 봉마감을 하면 이 전략은 각각 롱과 숏 신호를 트리거합니다. 이렇게 새롭게 정의된 RSI+CMO 지표는 기존 CMO 전략 대비 승률과 수익이 더 우수합니다. 이 전략의 세팅 기본값은 8시간봉에 최적화 되어있습니다. 다른 시간대 봉에서는 최적값을 직접 찾아보십시오. 그리고 이전략은 RSI+CMO Hybrid Index와 함께 사용하면 Long과 Short 신호를 예측할 수 있어 편리합니다.
* 최근에 제 스크립트를 도용/표절하여 무단으로 퍼블리쉬한 사례가 발생하여 더 이상 스크립트는 공개하지 않기로 하였습니다.
RSI Pro+ (Bear market, financial crisis and so on EditionIn markets defined by volatility, fear, and uncertainty – the battlegrounds of bear markets and financial crises – you need tools forged in resilience. Introducing RSI Pro+, a strategy built upon a legendary indicator born in 1978, yet engineered with modern visual clarity to remain devastatingly effective even in the chaotic financial landscapes of 3078.
This isn't about complex algorithms predicting the unpredictable. It's about harnessing the raw, time-tested power of the Relative Strength Index (RSI) to identify potential exhaustion points and capitalize on oversold conditions. RSI Pro+ cuts through the noise, providing clear, actionable signals when markets might be poised for a relief bounce or reversal.
Core Technology (The 1978 Engine):
RSI Crossover Entry: The strategy initiates a LONG position when the RSI (default period 11) crosses above a user-defined low threshold (default 30). This classic technique aims to enter when selling pressure may be waning, offering potential entry points during sharp downturns or periods of consolidation after a fall.
Modern Enhancements (The 3078 Cockpit):
RSI Pro+ isn't just about the signal; it's about providing a professional-grade visual experience directly on your chart:
Entry Bar Highlight: A subtle background flash on the chart signals the exact bar where the RSI crossover condition is met, alerting you to potential entry opportunities.
Trade Bar Coloring: Once a trade is active, the price bars are subtly colored, giving you immediate visual confirmation that the strategy is live in the market.
Entry Price Line: A clear, persistent line marks your exact average entry price for the duration of the trade, serving as a crucial visual anchor.
Take Profit Line: Your calculated Take Profit target is plotted as a distinct line, keeping your objective clearly in sight.
Custom Entry Marker: A precise shape (▲) appears below the bar where the trade entry was actually executed, pinpointing the start of the position.
On-Chart Info Table (HUD): A clean, customizable Heads-Up Display appears when a trade is active, showing vital information at a glance:
Entry Price: Your position's average cost basis.
TP Target: The calculated price level for your Take Profit exit.
Current PnL%: Real-time Profit/Loss percentage for the open trade.
Full Customization: Nearly every aspect is configurable via the settings menu:
RSI Period & Crossover Level
Take Profit Percentage
Toggle ALL visual enhancements on/off individually
Position the Info Table wherever you prefer on the chart.
How to Use RSI Pro+:
Add to Chart: Apply the "RSI Pro+ (Bear market...)" strategy to your TradingView chart. Ensure any previous versions are removed.
Access Settings: Click the cogwheel icon (⚙️) next to the strategy name on your chart.
Configure Inputs (Crucial Step):
RSI Crossover Level: This is key. The default (30) targets standard oversold conditions. In severe downturns, you might experiment with lower levels (e.g., 25, 20) or higher ones (e.g., 40) depending on the asset and timeframe. Observe where RSI(11) typically bottoms out on your chart.
Take Profit Percentage (%): Define your desired profit target per trade (e.g., enter 0.5 for 0.5%, 1.0 for 1%). The default is a very small 0.11%.
RSI Period: While default is 11, you can adjust this (e.g., the standard 14).
Visual Enhancements: Enable or disable the visual features (background highlights, bar coloring, lines, markers, table) according to your preference using the checkboxes. Adjust table position.
Observe & Backtest: Watch how the strategy behaves on your chosen asset and timeframe. Use TradingView's Strategy Tester to analyze historical performance based on your settings. No strategy works perfectly everywhere; testing is essential.
Important Considerations:
Risk Management: This specific script version focuses on a Take Profit exit. It does not include an explicit Stop Loss. You MUST manage risk through appropriate position sizing, potentially adding a Stop Loss manually, or by modifying the script.
Oversold ≠ Reversal: An RSI crossover is an indicator of potential exhaustion, not a guarantee of a price reversal.
Fixed TP: A fixed percentage TP ensures small wins but may exit before larger potential moves.
Backtesting Limitations: Past performance does not guarantee future results.
RSI Pro+ strips away complexity to focus on a robust, time-honored principle, enhanced with modern visuals for the discerning trader navigating today's (and tomorrow's) challenging markets
RSI + MA StrategyHello, everyone!
We have just released an innovative strategy for TradingView. It allows you to facilitate the trading process when you have to use both indicators.
This strategy is:
User-friendly
Configurable
Equipped with the combination of Relative Strength Index (RSI) and Moving Average (MA) indicators
Designed with all required functions to manage positions
Features
The RSI+MA strategy can:
Identify entry points for Long and Short positions.
Depict RSI and MA values concerning each other.
Reduce visual congestion and import usability thanks to using a combo of 2 indicators.
Allow using pivot trading. The RSI+MA strategy will enter a Long position according to the Short position conditions. And vice versa.
Note! If you want to open a Long position, the RSI line should cross MA from top to bottom. If you want to open a Short position, RSI has to cross MA from bottom to top.
Parameters
We have equipped our strategy with more than 14 additional parameters. So, you can configure the EA according to your needs!
Inputs :
Use Reverse Trade — allows swapping Long and Short positions opening conditions.
Resolution — allows you to view an indicator with data on a higher or lower timeframe on the current chart.
RSI Length
RSI Source: Open, High, Low, Close, HL2, HLC3, OHLC4
Show MA — allows you to enable or disable MA displaying.
MA Length
MA Offset
Style:
RSI — RSI indicator line color and style settings.
MA — MA indicator line color and style configuration.
Upper Band — allows customizing line style, color, and RSI upper bound value.
Lower Band — allows you to customize line style, color, and RSI lower bound value.
Background — background color setting within the RSI upper and lower borders.
Precision — number of decimals for RSI values.
Note! Try RSI+MA on your demo account first before going live.
RSI Divergence Strategy - AliferCryptoStrategy Overview
The RSI Divergence Strategy is designed to identify potential reversals by detecting regular bullish and bearish divergences between price action and the Relative Strength Index (RSI). It automatically enters positions when a divergence is confirmed and manages risk with configurable stop-loss and take-profit levels.
Key Features
Automatic Divergence Detection: Scans for RSI pivot lows/highs vs. price pivots using user-defined lookback windows and bar ranges.
Dual SL/TP Methods:
- Swing-based: Stops placed a configurable percentage beyond the most recent swing high/low.
- ATR-based: Stops placed at a multiple of Average True Range, with a separate risk/reward multiplier.
Long and Short Entries: Buys on bullish divergences; sells short on bearish divergences.
Fully Customizable: Input groups for RSI, divergence, swing, ATR, and general SL/TP settings.
Visual Plotting: Marks divergences on chart and plots stop-loss (red) and take-profit (green) lines for active trades.
Alerts: Built-in alert conditions for both bullish and bearish RSI divergences.
Detailed Logic
RSI Calculation: Computes RSI of chosen source over a specified period.
Pivot Detection:
- Identifies RSI pivot lows/highs by scanning a lookback window to the left and right.
- Uses ta.barssince to ensure pivots are separated by a minimum/maximum number of bars.
Divergence Confirmation:
- Bullish: Price makes a lower low while RSI makes a higher low.
- Bearish: Price makes a higher high while RSI makes a lower high.
Entry:
- Opens a Long position when bullish divergence is true.
- Opens a Short position when bearish divergence is true.
Stop-Loss & Take-Profit:
- Swing Method: Computes the recent swing high/low then adjusts by a percentage margin.
- ATR Method: Uses the current ATR × multiplier applied to the entry price.
- Take-Profit: Calculated as entry price ± (risk × R/R ratio).
Exit Orders: Uses strategy.exit to place bracket orders (stop + limit) for both long and short positions.
Inputs and Configuration
RSI Settings: Length & price source for the RSI.
Divergence Settings: Pivot lookback parameters and valid bar ranges.
SL/TP Settings: Choice between Swing or ATR method.
Swing Settings: Swing lookback length, margin (%), and risk/reward ratio.
ATR Settings: ATR length, stop multiplier, and risk/reward ratio.
Usage Notes
Adjust the Pivot Lookback and Range values to suit the volatility and timeframe of your market.
Use higher ATR multipliers for wider stops in choppy conditions, or tighten swing margins in trending markets.
Backtest different R/R ratios to find the balance between win rate and reward.
Disclaimer
This script is for educational purposes only and does not constitute financial advice. Trading carries significant risk and you may lose more than your initial investment. Always conduct your own research and consider consulting a professional before making any trading decisions.
Rsi Long-Term Strategy [15min]Hello, I would like to present to you The "RSI Long-Term Strategy" for 15min tf
The "RSI Long-Term Strategy " is designed for traders who prefer a combination of momentum and trend-following techniques. The strategy focuses on entering long positions during significant market corrections within an overall uptrend, confirmed by both RSI and volume. The use of long-term SMAs ensures that trades are made in line with the broader market trend. The stop-loss feature provides risk management by limiting losses on trades that do not perform as expected. This strategy is particularly well-suited for longer-term traders who monitor 15-minute charts but look for substantial trend reversals or continuations.
Indicators and Parameters:
Relative Strength Index (RSI):
- The RSI is calculated using a 10-period length. It measures the magnitude of recent price changes to evaluate overbought or oversold conditions. The script defines oversold conditions when the RSI is at or below 30 and overbought conditions when the RSI is at or above 70.
Volume Condition:
-The strategy incorporates a volume condition where the current volume must be greater than 2.5 times the 20-period moving average of volume. This is used to confirm the strength of the price movement.
Simple Moving Averages (SMA):
- The strategy uses two SMAs: SMA1 with a length of 250 periods and SMA2 with a length of 500 periods. These SMAs help identify long-term trends and generate signals based on their crossover.
Strategy Logic:
Entry Logic:
A long position is initiated when all the following conditions are met:
The RSI indicates an oversold condition (RSI ≤ 30).
SMA1 is above SMA2, indicating an uptrend.
The volume condition is satisfied, confirming the strength of the signal.
Exit Logic:
The strategy closes the long position when SMA1 crosses under SMA2, signaling a potential end of the uptrend (a "Death Cross").
Stop-Loss:
A stop-loss is set at 5% below the entry price to manage risk and limit potential losses.
Buy and sell signals are highlighted with circles below or above bars:
Green Circle : Buy signal when RSI is oversold, SMA1 > SMA2, and the volume condition is met.
Red Circle : Sell signal when RSI is overbought, SMA1 < SMA2, and the volume condition is met.
Black Cross: "Death Cross" when SMA1 crosses under SMA2, indicating a potential bearish signal.
to determine the level of stop loss and target point I used a piece of code by RafaelZioni, here is the script from which a piece of code was taken
I hope the strategy will be helpful, as always, best regards and safe trades
;)
RSI Strategy with Manual TP and SL 19/03/2024This TradingView script implements a simple RSI (Relative Strength Index) strategy with manual take profit (TP) and stop-loss (SL) levels. Let's break down the script and analyze its components:
RSI Calculation: The script calculates the RSI using the specified length parameter. RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and typically values above 70 indicate overbought conditions while values below 30 indicate oversold conditions.
Strategy Parameters:
length: Length of the RSI period.
overSold: Threshold for oversold condition.
overBought: Threshold for overbought condition.
trail_profit_pct: Percentage for trailing profit.
Entry Conditions:
For a long position: RSI crosses above 30 and the daily close is above 70% of the highest close in the last 50 bars.
For a short position: RSI crosses below 70 and the daily close is below 130% of the lowest close in the last 50 bars.
Entry Signals:
Long entry is signaled when both conditions for a long position are met.
Short entry is signaled when both conditions for a short position are met.
Manual TP and SL:
Take profit and stop-loss levels are calculated based on the entry price and the specified percentage.
For long positions, the take profit level is set above the entry price and the stop-loss level is set below the entry price.
For short positions, the take profit level is set below the entry price and the stop-loss level is set above the entry price.
Strategy Exits:
Exit conditions are defined for both long and short positions using the calculated take profit and stop-loss levels.
Chart Analysis:
This strategy aims to capitalize on short-term momentum shifts indicated by RSI crossings combined with daily price movements.
It utilizes manual TP and SL levels, providing traders with flexibility in managing their positions.
The strategy may perform well in ranging or oscillating markets where RSI signals are more reliable.
However, it may encounter challenges in trending markets where RSI can remain overbought or oversold for extended periods.
Traders should backtest this strategy thoroughly on historical data and consider optimizing parameters to suit different market conditions.
Risk management is crucial, so traders should carefully adjust TP and SL percentages based on their risk tolerance and market volatility.
Overall, this strategy provides a structured approach to trading based on RSI signals while allowing traders to customize their risk management. However, like any trading strategy, it should be used judiciously and in conjunction with other forms of analysis and risk management techniques.
RSI-RENKO Divine Strategy (Backtesting)Live, non-repainting strategy using RENKO and RSI mixed together to multiple types of long and short positions.
- Features -
Live entry direction with trade warnings and alerts
Live trade building buy and sell limits (for buy/sell limits)
Entry location icons as well as pyramid entries (to add to existing position)
Swing trades that keep you in the trade for the maximum possible profit
1 scalp target based on the RSI settings and entry location
Dynamic trailing stop for swings and scalps
Alert conditions for every update and condition change of the strategy (Provided by indicator study)
4 pre-built color themes, including candlestick coloring
This strategy is best used with the companion indicators: Renko RSI and Renko Trend Momentum using the identical RSI and Trend settings.
The linked script is identical and used solely for alerts, because Trading View still after 3 years of requesting does not provide the ability to use alert conditions inside a strategy script, only an indicator script. This strategy should be used to backtest your settings.
The approach to this strategy uses several parallel trades of different types. In order to generate multiple trade types the "pyramid trades" setting of the strategy (second tab of the settings that lets you adjust the number of pyramid contracts) should be used.
- Trade Types -
Swing: This trade is entered on the solid arrows after the RSI has become oversold or overbought. It is key that all trades wait for some degree of pullback before entering, even after the trend flips between positive and negative. This trade is held until stopped out or an opposite trade is triggered that reverses the position.
Scalp: These trades have a limit buy/sell entry and a target. The initial target is the opposing RSI overbought or oversold level and changes in real time.
Turning on/off the different trade types (strategy only) is simple done by decreasing the number of contracts used for that trade type to zero. When the quantity is set to zero, that trade is not considered.
- Session -
The session filter is used to narrow trade executions by only allowing trades that are inside the session boundaries. This can be used to isolate the London or New York session for example. The default is 24 x 7 which filters no trades (Trading View has a bug when resetting this, so simply reset the indicator to get it back to 24x7).
Please see the following 3 videos introducing the concept of this strategy.
All feature requests or bug reports are welcome either by direct messaging or comments on this page or the linked indicator page.
Please PM for access. Cheers.
RSI Strategy With TP/SL - Lower TFThis Pine Script strategy integrates the Relative Strength Index (RSI) for trade signals with user-defined Take Profit (TP) and Stop Loss (SL) levels. It's designed for flexible application in different market conditions, offering long, short, or dual-direction trading.
Short Description
The strategy uses the RSI to identify overbought and oversold market conditions:
Buy signal: When RSI drops below the specified "Buy Level."
Sell signal: When RSI rises above the "Sell Level."
Additionally, it manages risk and profit targets with:
Take Profit (TP): Exits trades when the price reaches a percentage gain.
Stop Loss (SL): Exits trades to limit losses if the price falls by a certain percentage.
The strategy is versatile and includes options for visualizing performance, monthly profit/loss data, and detailed trade metrics.
How to Use
Set Parameters:
RSI Period: Default is 14. Adjust based on your analysis.
RSI Buy/Sell Levels:
Buy Level: Default is 40. Consider higher levels for conservative entries.
Sell Level: Default is 60. Lower this for earlier exits.
Take Profit (%): Set your profit target (default: 5%).
Stop Loss (%): Set your risk tolerance (default: 2%).
Trade Direction: Choose "Long Only," "Short Only," or "Both."
Interpret Signals:
Buy signals appear when RSI crosses below the buy threshold.
Sell signals appear when RSI crosses above the sell threshold.
Risk Management:
The strategy dynamically calculates TP and SL levels for each trade.
TP/SL is applied using the percentage input based on the entry price.
Monitor Performance:
Review trade statistics in the "Strategy Tester."
Use the monthly performance table to track P/L across months.
Customize Alerts:
Alerts for buy, sell, TP, and SL events can be used to automate notifications.
Key Features
Configurable RSI Settings: Adaptable to various market conditions.
Risk Management: Built-in TP and SL management.
Customizable Trade Direction: Tailored for long-only, short-only, or both directions.
Monthly P/L Table: Visualizes performance trends over time.
Alerts: Notifies when critical trade events occur.
Please do your own research before ase this to your real trading.
Rsi strategy for BTC with (Rsi SPX)
I hope this strategy is just an idea and a starting point, I use the correlation of the Sp500 with the Btc, this does not mean that this correlation will exist forever!. I love Trading view and I'm learning to program, I find correlations very interesting and here is a simple strategy.
This is a trading strategy script written in Pine Script language for use in TradingView. Here is a brief overview of the strategy:
The script uses the RSI (Relative Strength Index) technical indicator with a period of 14 on two securities: the S&P 500 (SPX) and the symbol corresponding to the current chart (presumably Bitcoin, based on the variable name "Btc_1h_fixed"). The RSI is plotted on the chart for both securities.
The script then sets up two trading conditions using the RSI values:
A long entry condition: when the RSI for the current symbol crosses above the RSI for the S&P 500, a long trade is opened using the "strategy.entry" function.
A short entry condition: when the RSI for the current symbol crosses below the RSI for the S&P 500, a short trade is opened using the "strategy.entry" function.
The script also includes a take profit input parameter that allows the user to set a percentage profit target for closing the trade. The take profit is set using the "strategy.exit" function.
Overall, the strategy aims to take advantage of divergences in RSI values between the current symbol and the S&P 500 by opening long or short trades accordingly. The take profit parameter allows the user to set a specific profit target for each trade. However, the script does not include any stop loss or risk management features, which should be considered when implementing the strategy in a real trading scenario.
RSI Divergence Strategywhat is "RSI Divergence Strategy"?
it is a RSI strategy based this indicator:
what it does?
it gives buy or sell signals according to RSI Divergences. it also has different variables such as "take profit", "stop loss" and trailing stop loss.
how it does it?
it uses the "RSI Divergence" indicator to give signal. For detailed information on how it works, you can visit the link above. The quantity of the inputs is proportional to the rsi values. Long trades are directly traded with "RSI" value, while short poses are traded with "100-RSI" value.
How to use it?
The default settings are for scalp strategy but can be used for any type of trading strategy. you can develop different strategies by changing the sections. It is quite simple to use.
RSI length is length of RSİ
source is source of RSİ
RSİ Divergence lenght is length of line on the RSI
The "take profit", "stop" and "trailing stop" parts used in the "buy" group only affect buys. The "sell" group is similarly independent of the variables in the "buy" group.
The "zoom" section is used to enlarge or reduce the indicator. it only changes the appearance, it does not affect the results of the strategy.
RSI V Pattern strategyThis strategy based on RSI for swing trading or short term trading
Strategy Rules
=============
LONG
1. ema20 is above ema50 --- candles are colored green on the chart
2. RSI value sharply coming up
previous candle1 low is previous candle2 low and previous candle1 RSI value is less than previous candle2
current candle RSI value is greater than previous candle1 and crossing above 30
above which makes a V shape on RSI indicator, colored in yellow on the chart , price bar is colored in yellow
3. Enter Long when the above V pattern occurs
EXIT LONG
1. when the RSI reaches 70 , close half position and move stop loss to up
2. when RSI reaches high value 90, close 3/4 position
3. when RSI crossing below 10 OR stopLoss hit , whichever happens first , close whole position
Note : take profit levels are colored in blue on RSI and Price candles
I have tested SPY , QQQ on daily chart , performance results are with 80% win rate and more than 3 profit factor
Happy Trading
RSI Strategy with Adjustable RSI and Stop-LossThis trading strategy uses the Relative Strength Index (RSI) and a Stop-Loss mechanism to make trading decisions. Here’s a breakdown of how it works:
RSI Calculation:
The RSI is calculated based on the user-defined length (rsi_length). This is a momentum oscillator that measures the speed and change of price movements.
Buy Condition:
The strategy generates a buy signal when the RSI value is below a user-defined threshold (rsi_threshold). This condition indicates that the asset might be oversold and potentially due for a rebound.
Stop-Loss Mechanism:
Upon triggering a buy signal, the strategy calculates the Stop-Loss level. The Stop-Loss level is set to a percentage below the entry price, as specified by the user (stop_loss_percent). This level is used to limit potential losses if the price moves against the trade.
Sell Condition:
A sell signal is generated when the current closing price is higher than the highest high of the previous day. This condition suggests that the price has reached a new high, and the strategy decides to exit the trade.
Plotting:
The RSI values are plotted on the chart for visual reference. A horizontal line is drawn at the RSI threshold level to help visualize the oversold condition.
Summary
Buying Strategy: When RSI is below the specified threshold, indicating potential oversold conditions.
Stop-Loss: Set based on a percentage of the entry price to limit potential losses.
Selling Strategy: When the price surpasses the highest high of the previous day, signaling a potential exit point.
This strategy aims to capture potential rebounds from oversold conditions and manage risk using a Stop-Loss mechanism. As with any trading strategy, it’s essential to test and optimize it under various market conditions to ensure its effectiveness.
RSI on VWAP Upgraded strategyFirst of all, the idea of apply RSI to VWAP was inspired by XaviZ; at least, that where I first saw that.
I simply applied the idea and searched for apply this on lower timeframe (M15) to increase the number of positions and improve the profit factor.
The conditions to enter are the same :
long : enter on RSI crossover oversold level
short : enter on RSI crossunder oversell level
To close position, I found a little change to apply :
long : close position when RSI(VWAP) went in overbought zone and crossunder the overbought level OR after being at least x bars in the overbought zone (parameter is 28 by default) => when the first condition happens
short : close position when RSI(VWAP) went in oversold zone and crossover the oversold level OR after being at least x bars in the oversell zone (parameter is 28 by default) => when the first condition happens
With this change, I got better results specially on BTCUSDTPERP (M15) where I reach a 6.8 profit factor with 119 trades closed. Not BAD !
The defaults parameters are the best found for BTCUSDTPERP (M15), but the strategy works fine for other pairs if you take time to find the rights combinations.
In this strategy you can change (with defaults in () ):
RSI length (28)
RSI overbought level (85)
RSI oversell level (30)
Number of bars before leaving as explain above (28)
The choice to take longs only, shorts only or both
The number of coin/token by position
The start date for backtesting
Please note that the script use a pyramiding parameter of 3 (can be changed in the first line of the script); that means that you can take up to 3 positions before closing. It lets you improve average enter price but increase the risk. 3 is the best I found to improve profit factor without expose myself too much.
This script would be better if automated because of the conditions of buy and sell.
It's only for educative purpose, not an advice to invest.
All my free scripts here : fr.tradingview.com
Leave a message and don't forget to follow me ;) !
RSI StrategySimple way how to use RSI and MA indicators for trading.
What we use:
• RSI
• SMA calculated by RSI (title: SMA_RSI)
• Delta of RSI and SMA_RSI (title: delta)
• SMA calculated by delta of RSI and SMA & RSI (title: SMA_RSI2)
Logic:
Upon the fact that we use the difference between two indicators that have similar values ( RSI and SMA_RSI), we get number around zero. Next, result is smoothed by calculated the SMA . This is the blue/purple line that appears on the chart - SMA_RSI2.
The trade open when SMA_RSI2 cross over the threshold. The trade close when SMA_RSI2 cross under the threshold below.
Also, the usual EMA 200 is used as a filter, which you can switch on or switch off.
RSI StrategyThis RSI strategy is different than most in that it doesn't pick a buy signal based on the RSI rising above a specific number (usually 30). Instead, it creates a 14 day exponential moving average of the Relative Strength Index and uses the following two conditions together to trigger a buy:
Entry conditions:
Condition1: Rising of the RSI's moving average for (user defined) candles in a row
Condition 2: The RSI is < 70
The reasoning behind condition 1 is that we are trying to buy into a rising trend, the moving average helps to confirm the trend, whereas the RSI rising above a specific number (usually 30) gives us no real indication that the asset will increase and produces less wins overall. The reasoning behind condition 2 is to avoid buying at the top of a climb.
Exit conditions:
Condition 1: The RSI moving average is falling
Condition 2: Close < Trailing stop activation Level
Condition 3: We have at least (user defined) % profit
The reasoning behind sell condition 1 is a falling RSI moving average (down trend starting). The close has to be under the trailing stop activation level, if we've triggered the trailing stop, we want the trailing stop to do it's job and not exit the trade until the trailing stop takes us out. The reasoning behind condition 3 is to not exit without at least some profit (user defined).
RSI-ATR Divine Strategy (Backtesting)Live, non-repainting strategy using ATR and RSI mixed together to multiple types of long and short positions.
- Features -
Live entry direction with trade warnings and alerts
Live trade building buy and sell stops (for buy/sell stop limits)
Entry location icons as well as pyramid entries (to add to existing position)
2 separate targets based on the ATR setting and entry location
1 scalp target based on the ATR setting and entry location
2 separate trailing stops, 1 for "absolute stop" and 1 for "scalp trades"
Alert conditions for every update and condition change of the strategy (Provided by indicator study )
4 pre-built color themes, including candlestick coloring
This strategy is best used with my RSI Shaded Indicator using the identical RSI settings.
The linked script is identical and used solely for alerts, because Trading View still after 3 years of requesting does not provide the ability to use alert conditions inside a strategy script, only an indicator script. This strategy should be used to backtest your settings.
The approach to this strategy uses several parallel trades of different types. In order to generate multiple trade types the "pyramid trades" setting of the strategy (second tab of the settings that lets you adjust the number of pyramid contracts) should be used.
- Trade Types -
Swing: This trade is entered on the solid arrows after the RSI has become oversold or overbought. It is key that all trades wait for some degree of pullback before entering, even after the trend flips between positive and negative. This trade is held until stopped out or an opposite trade is triggered that reverses the position.
Target: These trades are entered at both the initial swing trade, or any subsequent pyramid/greedy trades that present themselves along the way while the trend remains in the same direction. The difference between these trades and the swing trade is that they have targets calculated as: Target = +/- * ATR. Until the target price is reached it does not change. When exceeded the next target trade will have a new target price.
Scalp: These trades have a limit buy/sell entry and a target. The target is very similar to the ATR Multiplier calculation for Target trades, but uses the instead.
Turning on/off the different trade types (strategy only) is simple done by decreasing the number of contracts used for that trade type to zero. When the quantity is set to zero, that trade is not considered.
- Session -
The session filter is used to narrow trade executions by only allowing trades that are inside the session boundaries. This can be used to isolate the London or New York session for example. The default is 24 x 7 which filters no trades (Trading View has a bug when resetting this, so simply reset the indicator to get it back to 24x7).
All feature requests or bug reports are welcome either by direct messaging or comments on this page or the linked indicator page.
Please PM for access. Cheers.
RSI + Stochastic + WMA StrategyThis script is designed for TradingView and serves as a trading strategy (not just a visual indicator). It's intended for backtesting, strategy optimization, or live trading signal generation using a combination of popular technical indicators.
📊 Indicators Used in the Strategy:
Indicator Description
RSI (Relative Strength Index) Measures momentum; identifies overbought (>70) or oversold (<30) conditions.
Stochastic Oscillator (%K & %D) Detects momentum reversal points via crossovers. Useful for timing entries.
WMA (Weighted Moving Average) Identifies the trend direction (used as a trend filter).
📈 Trading Logic / Strategy Rules:
📌 Long Entry Condition (Buy Signal):
All 3 conditions must be true:
RSI is Oversold → RSI < 30
Stochastic Crossover Upward → %K crosses above %D
Price is above WMA → Confirms uptrend direction
👉 Interpretation: Market was oversold, momentum is turning up, and price confirms uptrend — bullish entry.
📌 Short Entry Condition (Sell Signal):
All 3 conditions must be true:
RSI is Overbought → RSI > 70
Stochastic Crossover Downward → %K crosses below %D
Price is below WMA → Confirms downtrend direction
👉 Interpretation: Market is overbought, momentum is turning down, and price confirms downtrend — bearish entry.
🔄 Strategy Execution (Backtesting Logic):
The script uses:
pinescript
Copy
Edit
strategy.entry("LONG", strategy.long)
strategy.entry("SHORT", strategy.short)
These are Pine Script functions to place buy and sell orders automatically when the above conditions are met. This allows you to:
Backtest the strategy
Measure win/loss ratio, drawdown, and profitability
Optimize indicator settings using TradingView Strategy Tester
📊 Visual Aids (Charts):
Plots WMA Line: Orange line for trend direction
Overbought/Oversold Zones: Horizontal lines at 70 (red) and 30 (green) for RSI visualization
⚡ Strategy Type Summary:
Category Setting
Strategy Type Momentum Reversal + Trend Filter
Timeframe Flexible (Works best on 1H, 4H, Daily)
Trading Style Swing/Intraday
Risk Profile Medium to High (due to momentum triggers)
Uses Leverage Possible (adjust risk accordingly)
RSI and ATR Trend Reversal SL/TPQuick History:
I was frustrated with a standard fixed percent TP/SL as they often were not receptive to quick market rallies/reversals. I developed this TP/SL and eventually made it into a full fledge strategy and found it did well enough to publish. This strategy can be used as a standalone or tacked onto another strategy as a TP/SL. It does function as both with a single line. This strategy has been tested with TSLA , AAPL, NVDA, on the 15 minutes timeframe.
HOW IT WORKS:
Inputs:
Length: Simple enough, it determines the length of the RSI and ATR used.
Multiplier: This multiplies the RSI and ATR calculation, more on this later.
Delay to prevent Idealization: TradingView will use the open of the bar the strategy triggers on when calculating the backtest. This can produce unrealistic results depending on the source. If your source is open, set to 0, if anything else, set to 1.
Minimum Difference: This is essentially a traditional SL/TP, it is borderline unnecessary, but if the other parameters are wacky this can be used to ensure the SL/TP. It multiplies the source by the percent, so if it is set to 10, the SL/TP is initialized at src +- 10%.
Source input: Self Explanatory, be sure to update the Delay if you use open.
CALCULATION:
Parameters Initialization:
The strategy uses Heikinashi values for calculations, this is not toggleable in parameters, but can be easily changed by changing hclose to equal src.
FUNCTION INITIALIZATION:
highest_custom and lowest_custom do the same thing as ta.highest and ta.lowest, however the built in ta library does not allow for var int input, so I had to create my own functions to be used here. I actually developed these years ago and have used them in almost every strategy since. Feel especially free to use these in your own scripts.
The rsilev is where the magic happens.
SL/TP min/max are initially calculated to be used later.
Then we begin by establishing variables.
BullGuy is used to determine the length since the last crossup or crossdown, until one happens, it returns na, breaking the function. BearGuy is used in all the calculations, and is the same as BullGuy, unless BullGuy is na, where BearGuy counts up from 1 on each bar from 0.
We create our rsi and have to modify the second one to suit the function. In the case of the upper band, we mirror the lower one. So if the RSI is 80, we want it to be 20 on the upper band.
the upper band and lower band are calculated the exact same way, but mirrored. For the purpose of writing, I'm going to talk about the lower band. Assume everything is mirrored for the upper one. It finds the highest source since the last crossup or crossdown. It then multiplies from 1 / the RSI, this means that a rapid RSI increase will increase the band dramatically, so it is able to capture quick rally/reversals. We add this to the atr to source ratio, as the general volatility is a massive factor to be included. We then multiply this number by our chosen amount, and subtract it from the highest source, creating the band.
We do this same process but mirrored with both bands and compared it to the source. If the source is above the lower band, it suggests an uptrend, so the lower band is outputted, and vice versa for the upper one.
PLOTTING:
We also determine the line color in the same manner as we do the trend direction.
STRATEGY:
We then use the source again, and if it crosses up or down relative to the selected band, we enter a long or short respectively.
This may not be the most superb independent strategy, but it can be very useful as a TP/SL for your chosen entry conditions, especially in volatile markets or tickers.
Thank you for taking the time to read, and please enjoy.
RSI TrueLevel StrategyThis strategy is a momentum-based strategy that uses the Relative Strength Index (RSI) indicator and a TrueLevel envelope to generate trade signals.
The strategy uses user-defined input parameters to calculate TrueLevel envelopes for 14 different lengths. The TrueLevel envelope is a volatility-based technical indicator that consists of upper and lower bands. The upper band is calculated by adding a multiple of the standard deviation to a linear regression line of the price data, while the lower band is calculated by subtracting a multiple of the standard deviation from the same regression line.
The strategy generates long signals when the RSI crosses above the oversold level or when the price crosses above the selected lower band of the TrueLevel envelope. It generates short signals when the RSI crosses below the overbought level or when the price crosses below the selected upper band of the TrueLevel envelope.
The strategy allows for long and short trades and sets the trade size as a percentage of the account equity. The colors of the bands and fills are also customizable through user-defined input parameters.
In this strategy, the 12th TrueLevel band was chosen due to its ability to capture significant price movements while still providing a reasonable level of noise reduction. The strategy utilizes a total of 14 TrueLevel bands, each with varying lengths. The 12th band, with a length of 2646, strikes a balance between sensitivity to market changes and reducing false signals, making it a suitable choice for this strategy.
RSI Parameters:
In this strategy, the RSI overbought and oversold levels are set at 65 and 40, respectively. These values were chosen to filter out more noise in the market and focus on stronger trends. Traditional RSI overbought and oversold levels are set at 70 and 30, respectively. By raising the oversold level and lowering the overbought level, the strategy aims to identify more significant trend reversals and potential trade opportunities.
Of course, the parameters can be adjusted to suit individual preferences.
RSI and MA with Trailing Stop Loss and Take Profit (by Coinrule)The relative strength index is a momentum indicator used in technical analysis. It measures the speed and magnitude of a coin's recent price changes to evaluate overvalued or undervalued conditions in the price of that coin. The RSI is displayed as an oscillator (a line graph essentially) on a scale of zero to 100. When the RSI reaches oversold levels, it can provide a signal to go long. When the RSI reaches overbought levels, it can mark a good exit point or alternatively, an entry for a short position. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.
A moving average (MA) calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range. Essentially it is used to help smooth out price data by creating a constantly updated average price.
The Strategy enters and closes trades when the following conditions are met:
Entry Conditions:
RSI is greater than 50
MA9 is greater than MA50
RSI increases by 5
Exit Conditions:
Price increases by 1% trailing
Price decreases by 2% trailing
This strategy is back-tested from 1 January 2022 to simulate how the strategy would work in a bear market. The strategy provides good returns.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
