OPEN-SOURCE SCRIPT
SKDJ Bottom-Top Reversal Indicator
SKDJ Bottom-Top Reversal Indicator — Introduction (English Version)
The SKDJ Bottom-Top Reversal Indicator is an enhanced version of the classic Stochastic (K/D) oscillator.
It is designed to identify high-probability reversal zones, highlight momentum shifts, and help traders capture oversold bounces and overbought pullbacks with greater clarity.
This indicator smooths the standard RSV calculation with double EMA/MMA layers, producing a more stable K/D structure while maintaining sensitivity to short-term price swings. It plots dynamic green/red lines for visual clarity and provides automatic buy/sell markers based on extreme-zone crossovers.
🔍 Core Logic
1. RSV Calculation
RSV measures the close price relative to the highest and lowest prices within a lookback window:RSV=EMA((Close−Lowest(N))/(Highest(N)−Lowest(N))×100,M)
This normalizes the price position into a 0–100 range and applies smoothing to reduce noise.
2. K & D Lines
K Line = EMA of RSV
D Line = SMA of K
The combination produces a fast and slow stochastic pair that tracks short-term momentum shifts.
3. Reversal Signals
The indicator automatically highlights:
Buy Signal (Bottom Reversal):
When K < 25 and K crosses above D → potential oversold rebound.
Sell Signal (Top Reversal):
When K > 75 and D crosses above K → potential overbought correction.
These signals combine extreme price positioning + momentum crossover, giving higher-quality reversal points.
🎨 Visual Features
Green K-line for upward momentum
Red D-line for trend strength
Overbought (80) & Oversold (20) horizontal guides
Automatic triangle markers for buy/sell signals
Optional background color shading
This clean visual design allows traders to read momentum more intuitively and react quicker to turning points.
🧩 Use Cases
The SKDJ indicator is ideal for:
Identifying short-term mean-reversion opportunities
Spotting early momentum reversal before large swings
Filtering entries inside range-bound markets
Confirming signals from other systems (MA, trendlines, volume)
It works on all timeframes and across stocks, crypto, forex, commodities.
📈 Why It Works
This indicator combines:
Price location (overbought/oversold range)
Momentum direction (K/D crossover)
Smoothed oscillation (less noise, cleaner signals)
The convergence of these three factors often precedes short-term market turning points.
The SKDJ Bottom-Top Reversal Indicator is an enhanced version of the classic Stochastic (K/D) oscillator.
It is designed to identify high-probability reversal zones, highlight momentum shifts, and help traders capture oversold bounces and overbought pullbacks with greater clarity.
This indicator smooths the standard RSV calculation with double EMA/MMA layers, producing a more stable K/D structure while maintaining sensitivity to short-term price swings. It plots dynamic green/red lines for visual clarity and provides automatic buy/sell markers based on extreme-zone crossovers.
🔍 Core Logic
1. RSV Calculation
RSV measures the close price relative to the highest and lowest prices within a lookback window:RSV=EMA((Close−Lowest(N))/(Highest(N)−Lowest(N))×100,M)
This normalizes the price position into a 0–100 range and applies smoothing to reduce noise.
2. K & D Lines
K Line = EMA of RSV
D Line = SMA of K
The combination produces a fast and slow stochastic pair that tracks short-term momentum shifts.
3. Reversal Signals
The indicator automatically highlights:
Buy Signal (Bottom Reversal):
When K < 25 and K crosses above D → potential oversold rebound.
Sell Signal (Top Reversal):
When K > 75 and D crosses above K → potential overbought correction.
These signals combine extreme price positioning + momentum crossover, giving higher-quality reversal points.
🎨 Visual Features
Green K-line for upward momentum
Red D-line for trend strength
Overbought (80) & Oversold (20) horizontal guides
Automatic triangle markers for buy/sell signals
Optional background color shading
This clean visual design allows traders to read momentum more intuitively and react quicker to turning points.
🧩 Use Cases
The SKDJ indicator is ideal for:
Identifying short-term mean-reversion opportunities
Spotting early momentum reversal before large swings
Filtering entries inside range-bound markets
Confirming signals from other systems (MA, trendlines, volume)
It works on all timeframes and across stocks, crypto, forex, commodities.
📈 Why It Works
This indicator combines:
Price location (overbought/oversold range)
Momentum direction (K/D crossover)
Smoothed oscillation (less noise, cleaner signals)
The convergence of these three factors often precedes short-term market turning points.
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。