ReadyFor401ks Stoch + RSIThis indicator is a powerful tool that combines the classic Relative Strength Index (RSI) with a Stochastic RSI to provide traders with a more nuanced view of market momentum and potential reversal points. By blending these two techniques, the script offers a detailed insight into price action, highlighting when a market might be overbought or oversold. The RSI is calculated once and then used both for a traditional RSI plot and to derive the Stochastic RSI, ensuring consistency and efficiency in your analysis.
One of the standout features of this indicator is its dynamic visual presentation. A gradient color scheme is applied to the RSI line, which changes based on its position between customizable overbought and oversold levels. This visual cue allows traders to quickly identify critical zones without having to constantly monitor numerical values. Additionally, the background fill between these levels enhances clarity, making it easier to spot when conditions are ripe for a potential reversal.
The indicator is highly customizable, allowing you to adjust parameters such as the RSI period, Stochastic length, and smoothing factors. This flexibility means you can fine-tune the tool to suit different market conditions, whether you’re trading trending markets or range-bound environments. For example, an RSI crossover above the oversold level can signal an emerging upward trend, while a crossover below the overbought level may indicate a downturn, providing actionable alerts that can be integrated into your trading strategy.
Overall, the ReadyFor401k Stoch + RSI indicator is designed to offer a clear, concise, and visually engaging method for monitoring market momentum. It serves as an excellent complement to other technical analysis tools and can help improve your decision-making process by providing early warning signals for potential market reversals. Whether you’re a seasoned trader or just starting out, this indicator can be a valuable addition to your TradingView toolkit.
隨機震盪指標(KD)
Adaptive Stochastic Oscillator with Signals [AIBitcoinTrend]👽 Adaptive Stochastic Oscillator with Signals (AIBitcoinTrend)
The Adaptive Stochastic Oscillator with Signals is a refined version of the traditional Stochastic Oscillator, dynamically adjusting its lookback period based on market volatility. This adaptive approach improves responsiveness to market conditions, reducing lag while maintaining trend sensitivity. Additionally, the indicator includes real-time divergence detection and an ATR-based trailing stop system, allowing traders to manage risk and optimize trade exits effectively.
👽 What Makes the Adaptive Stochastic Oscillator Unique?
Unlike the standard Stochastic Oscillator, which uses a fixed lookback period, this version dynamically adjusts the period length using an ATR-based fractal dimension. This makes it more responsive to market conditions, filtering out noise while capturing key price movements.
Key Features:
Adaptive Lookback Calculation – Stochastic period changes dynamically based on volatility.
Real-Time Divergence Detection – Identify bullish and bearish divergences instantly.
Implement Crossover/Crossunder signals tied to ATR-based trailing stops for risk management
👽 The Math Behind the Indicator
👾 Adaptive Lookback Period Calculation
Traditional Stochastic Oscillators use a fixed-length period for their calculations, which can lead to inaccurate signals in varying market conditions. This version automatically adjusts its lookback period based on market volatility using an ATR-based fractal dimension approach.
How it Works:
The fractal dimension (FD) is calculated using the ATR (Average True Range) over a defined period.
FD values dynamically adjust the Stochastic lookback period between a minimum and maximum range.
This results in a faster response in high-volatility conditions and smoother signals during low volatility.
👽 How Traders Can Use This Indicator
👾 Divergence Trading Strategy
Traders can anticipate trend reversals before they occur using real-time divergence detection.
Bullish Divergence Setup:
Identify price making a lower low while Stochastic %K makes a higher low.
Enter a long trade when Stochastic confirms upward momentum.
Bearish Divergence Setup:
Identify price making a higher high while Stochastic %K makes a lower high.
Enter a short trade when Stochastic confirms downward momentum.
👾 Trailing Stop & Signal-Based Trading
Bullish Setup:
✅Stochastic %K crosses above 90 → Buy signal.
✅A bullish trailing stop is placed at low - ATR × Multiplier.
✅Exit if the price crosses below the stop.
Bearish Setup:
✅Stochastic %K crosses below 10 → Sell signal.
✅A bearish trailing stop is placed at high + ATR × Multiplier.
✅Exit if the price crosses above the stop.
👽 Why It’s Useful for Traders
Adaptive Period Calculation: Dynamically adjusts to market volatility.
Real-Time Divergence Alerts: Helps traders identify trend reversals in advance.
ATR-Based Risk Management: Automatically adjusts stop levels based on price movements.
Works Across Multiple Markets & Timeframes: Useful for stocks, forex, crypto, and futures trading.
👽 Indicator Settings
Min & Max Lookback Periods – Define the range for the adaptive Stochastic period.
Enable Divergence Analysis – Toggle real-time divergence detection.
Lookback Period – Set the number of bars for detecting pivot points.
Enable Trailing Stop – Activate the dynamic trailing stop feature.
ATR Multiplier – Adjust stop-loss sensitivity.
Line Width & Colors – Customize stop-loss visualization.
Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
Relative Strength Index 2 / StochasticCombined RSI 2 and Stochastic 5-3-3
You may want to fiddle with the colours.
+ Stochastic S/R ZonesHey, all. I have a new indicator here that displays zones on your price chart where the stochastic oscillator has moved out of overbought or oversold back into the range of the indicator that is bounded by those two levels.
I know there are many support and resistance indicators on TradingView already, at least a couple of which use the RSI in a similar way as I am using the stochastic here, but I still believe this is a fairly novel interpretation of the stochastic, and it is, in my opinion, a better oscillator than the RSI to be used in this way.
In addition to the zones being plotted on the chart, the indicator also, optionally, can color candles or plot shapes above candles when the 50 line is crossed, so if you want to use this as a simple momentum indicator without desire of having the below chart indicator taking up screen space, you're pretty much covered on the typical signals you might want from it (with the exception of %K / %D crosses, but there are alerts for that).
Visually, it is a simple, clean indicator. There are the zones, and then candle colors or shapes if you opt to add those. These zones are actually drawn from the candle preceding the cross over or cross under. Reason for that is often times the candle of the cross is fairly impulsive and exiting a consolidation. That period of consolidation is what is important to highlight, at least as far as I am concerned. The zones themselves extend until they are broken by a candle. A support zone stops at the candle that closes below its low. Vice versa for a resistance zone.
Usage is fairly simple. All the standard stochastic inputs are available for you to adjust to your heart's content. Additionally, you can choose either the %K or %D line to use as the source from which the zones are drawn, candles are colored, and shapes are plotted. Not sure if this will matter to most people, but I figured it should be made available.
This should be obvious, but I feel it must be said, just because an oscillator (any oscillator) has exited overbought or oversold does not mean that there must be a reversal (or in the case of a trend pullback, continuation). The oscillator can always simply immediately move back into overbought/sold. Just because a support box prints does not mean you should mortgage your house on a long trade. In strong trends, and depending on your oscillator settings, the indicator might draw a box then only a couple of candles later break it, continuing on with the trend. This of course is telling you something, and you would be wise to listen. As with all things trading, context is important.
Here are a few extra screens for you.
I really hope you all like this. It's been ages since I've created anything new, and despite its simplicity and the few lines of code that make it up, it took a lot of work, as I am a poor coder.
Enjoy,
Scott
RSI Profit SniperDescription of the "RSI Profit Sniper" Indicator - t.me/ProfitISniper
The "RSI Profit Sniper" indicator is a trading tool based on the Relative Strength Index (RSI) that helps traders identify potential entry and exit points in financial markets. This indicator uses overbought and oversold conditions to generate buy and sell signals. Below is a detailed breakdown of its functionality.
Key Components of the Indicator:
RSI (Relative Strength Index):
RSI is an oscillator that measures the speed and magnitude of price movements over a specified period.
RSI values range from 0 to 100.
It is commonly used to detect overbought and oversold conditions of an asset.
Configuration Parameters:
RSI Length:
The user can set the number of bars (periods) for RSI calculation. The default value is 14.
Upper Threshold (Overbought Level):
The level above which the asset is considered overbought. The default value is 70.
Lower Threshold (Oversold Level):
The level below which the asset is considered oversold. The default value is 30.
How the Indicator Works:
RSI Calculation:
The indicator calculates the RSI value for each bar based on the specified period (rsiLength).
Signal Generation:
Buy Signal:
Triggered when the RSI line crosses the oversold level (lowerThreshold) from below. This indicates that the asset may be undervalued and ready for an upward move.
Sell Signal:
Triggered when the RSI line crosses the overbought level (upperThreshold) from above. This indicates that the asset may be overvalued and ready for a correction.
Signal Visualization:
Buy Signal: Displayed as a green label with the text "BUY" below the price chart.
Sell Signal: Displayed as a red label with the text "SELL" above the price chart.
Alerts:
The indicator provides three types of alerts:
BUY Alert: Triggered when a buy signal appears.
SELL Alert: Triggered when a sell signal appears.
General Alert: Triggered for any signal (buy or sell).
How to Use the Indicator:
Parameter Adjustment:
Traders can adjust the RSI period, overbought, and oversold levels according to market conditions and their trading strategy.
Analyzing Signals:
When a buy signal ("BUY") appears, traders can consider opening a long position.
When a sell signal ("SELL") appears, traders can consider closing a long position or opening a short one.
Filtering False Signals:
Although RSI is a powerful tool, it can produce false signals, especially in highly volatile or trending markets.
It is recommended to use additional indicators or analysis methods (e.g., trend lines, volume, candlestick patterns) to confirm signals.
Advantages of the Indicator:
Ease of Use: The indicator provides clear buy and sell signals.
Customizability: Users can tailor parameters to suit their preferences and trading conditions.
Automation: The ability to set up alerts allows traders to receive notifications about signals even outside trading hours.
Limitations of the Indicator:
False Signals: In sideways or strongly trending markets, RSI may generate many false signals.
Lagging Nature: Since RSI is based on historical data, it may lag behind changes in market conditions.
Need for Filtering: To improve accuracy, it is advisable to combine its use with other analysis tools.
Conclusion:
The "RSI Profit Sniper" indicator is a valuable tool for traders seeking a simple and effective way to identify potential entry and exit points based on overbought and oversold conditions. However, it is important to remember that no indicator guarantees 100% accuracy. Therefore, it is recommended to combine its use with other analysis methods to make informed decisions.
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Описание индикатора "RSI Profit Sniper" - t.me/ProfitISniper
Индикатор "RSI Profit Sniper" представляет собой торговый инструмент, основанный на индексе относительной силы (RSI), который помогает трейдерам определять потенциальные точки входа и выхода на финансовых рынках. Этот индикатор использует перекупленность и перепроданность актива для генерации сигналов о покупке и продаже. Давайте рассмотрим его функционал подробно.
Основные компоненты индикатора:
RSI (Relative Strength Index):
RSI — это осциллятор, который измеряет скорость и изменение ценового движения за заданный период времени.
Значения RSI колеблются в диапазоне от 0 до 100.
Обычно используется для выявления состояний перекупленности и перепроданности актива.
Параметры конфигурации:
RSI Length (Длина периода RSI):
Пользователь может настроить количество баров (периодов) для расчета RSI. По умолчанию установлено значение 14.
Upper Threshold (Уровень перекупленности):
Уровень, выше которого актив считается перекупленным. По умолчанию установлено значение 70.
Lower Threshold (Уровень перепроданности):
Уровень, ниже которого актив считается перепроданным. По умолчанию установлено значение 30.
Логика работы индикатора:
Расчет RSI:
Индикатор вычисляет значение RSI для каждого бара на основе указанного периода (rsiLength).
Генерация сигналов:
Buy Signal (Сигнал на покупку):
Срабатывает, когда линия RSI пересекает уровень перепроданности (lowerThreshold) снизу вверх. Это указывает на то, что актив может быть недооценен и готов к росту.
Sell Signal (Сигнал на продажу):
Срабатывает, когда линия RSI пересекает уровень перекупленности (upperThreshold) сверху вниз. Это указывает на то, что актив может быть переоценен и готов к коррекции.
Визуализация сигналов:
Buy Signal: Отображается как зеленая метка с текстом "BUY" под ценовым графиком.
Sell Signal: Отображается как красная метка с текстом "SELL" над ценовым графиком.
Оповещения:
Индикатор предоставляет три типа оповещений:
BUY Alert: Срабатывает при появлении сигнала на покупку.
SELL Alert: Срабатывает при появлении сигнала на продажу.
General Alert: Срабатывает при любом сигнале (покупка или продажа).
Как использовать индикатор:
Настройка параметров:
Трейдер может настроить период RSI, а также уровни перекупленности и перепроданности в зависимости от рыночных условий и стратегии торговли.
Анализ сигналов:
Когда появляется сигнал на покупку ("BUY"), трейдер может рассматривать возможность открытия длинной позиции.
Когда появляется сигнал на продажу ("SELL"), трейдер может рассматривать возможность закрытия длинной позиции или открытия короткой.
Фильтрация ложных сигналов:
Хотя RSI является мощным инструментом, он может давать ложные сигналы, особенно в условиях высокой волатильности или трендового движения.
Рекомендуется использовать дополнительные индикаторы или методы анализа (например, трендовые линии, объемы, свечные модели) для подтверждения сигналов.
Преимущества индикатора:
Простота использования: Индикатор предоставляет четкие сигналы на покупку и продажу.
Настраиваемость: Пользователь может адаптировать параметры под свои предпочтения и условия торговли.
Автоматизация: Возможность настройки оповещений позволяет получать уведомления о сигналах даже вне рабочего времени.
Ограничения индикатора:
Ложные сигналы: В условиях флэтового рынка или сильных трендов RSI может давать много ложных сигналов.
Задержка: Поскольку RSI основан на исторических данных, он может запаздывать при изменении рыночной ситуации.
Необходимость фильтрации: Для повышения точности рекомендуется использовать дополнительные инструменты анализа.
Заключение:
Индикатор "RSI Profit Sniper" является полезным инструментом для трейдеров, которые ищут простой и эффективный способ определения потенциальных точек входа и выхода на основе состояния перекупленности и перепроданности актива. Однако важно помнить, что никакой индикатор не гарантирует 100% точности, поэтому рекомендуется сочетать его использование с другими методами анализа для принятия обоснованных решений.
RSI/Stochastic With Real Time Candle OverlayThis indicator provides an alternative way to visualize either RSI or Stochastic values by representing them as candle bars in real time, allowing a more detailed view of momentum shifts within each bar. By default, it displays the standard historical plot of the chosen oscillator in the background, but once you are receiving real-time data (or if you keep your chart open through the close), it begins overlaying candles that track the oscillator’s intrabar movements. These candles only exist for as long as the chart remains open; if you refresh or load the chart anew, there is no stored candle history, although the standard RSI or Stochastic line is still fully retained. These candles offer insight into short-term fluctuations that are otherwise hidden when viewing a single line for RSI or Stochastic.
In the settings, there is an option to switch between standard candlesticks and Heiken Ashi. When Heiken Ashi is selected, the indicator uses the Heiken Ashi close once it updates in real time, producing a smoothed view of intrabar price movement for the oscillator. This can help identify trends in RSI or Stochastic by making it easier to spot subtle changes in direction, though some may prefer the unmodified values that come from using regular candles. The combination of these candle styles with an oscillator’s output offers flexibility for different analytical preferences.
Traders who use RSI or Stochastic often focus on entry and exit signals derived from crossing certain thresholds, but they are usually limited to a single reading per bar. With this tool, it becomes possible to watch how the oscillator’s value evolves within the bar itself, which can be especially useful for shorter timeframes or for those who prefer a more granular look at momentum shifts. The visual separation between bullish and bearish candle bodies within the indicator can highlight sudden reversals or confirm ongoing trends in the oscillator, aiding in more precise decision-making. Because the candle overlay is cleared as soon as the bar closes, the chart remains uncluttered when scrolling through historical data, ensuring that only the necessary real-time candle information is displayed.
Overall, this indicator is intended for users who wish to track intrabar changes in RSI or Stochastic, with the added choice of standard or Heiken Ashi candle representation. The real-time candle overlay clarifies short-lived fluctuations, while the standard line plots maintain the usual clarity of past data. This approach can be beneficial for those who want deeper insights into how oscillator values develop in real time, without permanently altering the simplicity of the chart’s historical view.
Multi-Indicator Signals with Selectable Options by DiGetMulti-Indicator Signals with Selectable Options
Script Overview
This Pine Script is a multi-indicator trading strategy designed to generate buy/sell signals based on combinations of popular technical indicators: RSI (Relative Strength Index) , CCI (Commodity Channel Index) , and Stochastic Oscillator . The script allows you to select which combination of signals to display, making it highly customizable and adaptable to different trading styles.
The primary goal of this script is to provide clear and actionable entry/exit points by visualizing buy/sell signals with arrows , labels , and vertical lines directly on the chart. It also includes input validation, dynamic signal plotting, and clutter-free line management to ensure a clean and professional user experience.
Key Features
1. Customizable Signal Types
You can choose from five signal types:
RSI & CCI : Combines RSI and CCI signals for confirmation.
RSI & Stochastic : Combines RSI and Stochastic signals.
CCI & Stochastic : Combines CCI and Stochastic signals.
RSI & CCI & Stochastic : Requires all three indicators to align for a signal.
All Signals : Displays individual signals from each indicator separately.
This flexibility allows you to test and use the combination that works best for your trading strategy.
2. Clear Buy/Sell Indicators
Arrows : Buy signals are marked with upward arrows (green/lime/yellow) below the candles, while sell signals are marked with downward arrows (red/fuchsia/gray) above the candles.
Labels : Each signal is accompanied by a label ("BUY" or "SELL") near the arrow for clarity.
Vertical Lines : A vertical line is drawn at the exact bar where the signal occurs, extending from the low to the high of the candle. This ensures you can pinpoint the exact entry point without ambiguity.
3. Dynamic Overbought/Oversold Levels
You can customize the overbought and oversold levels for each indicator:
RSI: Default values are 70 (overbought) and 30 (oversold).
CCI: Default values are +100 (overbought) and -100 (oversold).
Stochastic: Default values are 80 (overbought) and 20 (oversold).
These levels can be adjusted to suit your trading preferences or market conditions.
4. Input Validation
The script includes built-in validation to ensure that oversold levels are always lower than overbought levels for each indicator. If the inputs are invalid, an error message will appear, preventing incorrect configurations.
5. Clean Chart Design
To avoid clutter, the script dynamically manages vertical lines:
Only the most recent 50 buy/sell lines are displayed. Older lines are automatically deleted to keep the chart clean.
Labels and arrows are placed strategically to avoid overlapping with candles.
6. ATR-Based Offset
The vertical lines and labels are offset using the Average True Range (ATR) to ensure they don’t overlap with the price action. This makes the signals easier to see, especially during volatile market conditions.
7. Scalable and Professional
The script uses arrays to manage multiple vertical lines, ensuring scalability and performance even when many signals are generated.
It adheres to Pine Script v6 standards, ensuring compatibility and reliability.
How It Works
Indicator Calculations :
The script calculates the values of RSI, CCI, and Stochastic Oscillator based on user-defined lengths and smoothing parameters.
It then checks for crossover/crossunder conditions relative to the overbought/oversold levels to generate individual signals.
Combined Signals :
Depending on the selected signal type, the script combines the individual signals logically:
For example, a "RSI & CCI" buy signal requires both RSI and CCI to cross into their respective oversold zones simultaneously.
Signal Plotting :
When a signal is generated, the script:
Plots an arrow (upward for buy, downward for sell) at the corresponding bar.
Adds a label ("BUY" or "SELL") near the arrow for clarity.
Draws a vertical line extending from the low to the high of the candle to mark the exact entry point.
Line Management :
To prevent clutter, the script stores up to 50 vertical lines in arrays (buy_lines and sell_lines). Older lines are automatically deleted when the limit is exceeded.
Why Use This Script?
Versatility : Whether you're a scalper, swing trader, or long-term investor, this script can be tailored to your needs by selecting the appropriate signal type and adjusting the indicator parameters.
Clarity : The combination of arrows, labels, and vertical lines ensures that signals are easy to spot and interpret, even in fast-moving markets.
Customization : With adjustable overbought/oversold levels and multiple signal options, you can fine-tune the script to match your trading strategy.
Professional Design : The script avoids clutter by limiting the number of lines displayed and using ATR-based offsets for better visibility.
How to Use This Script
Add the Script to Your Chart :
Copy and paste the script into the Pine Editor in TradingView.
Save and add it to your chart.
Select Signal Type :
Use the "Signal Type" dropdown menu to choose the combination of indicators you want to use.
Adjust Parameters :
Customize the lengths of RSI, CCI, and Stochastic, as well as their overbought/oversold levels, to match your trading preferences.
Interpret Signals :
Look for green arrows and "BUY" labels for buy signals, and red arrows and "SELL" labels for sell signals.
Vertical lines will help you identify the exact bar where the signal occurred.
Tips for Traders
Backtest Thoroughly : Before using this script in live trading, backtest it on historical data to ensure it aligns with your strategy.
Combine with Other Tools : While this script provides reliable signals, consider combining it with other tools like support/resistance levels or volume analysis for additional confirmation.
Avoid Overloading the Chart : If you notice too many signals, try tightening the overbought/oversold levels or switching to a combined signal type (e.g., "RSI & CCI & Stochastic") for fewer but higher-confidence signals.
Averaged Stochastic RSI by TenozenSimplicity beats everything! Averaged Stochastic RSi is calculated using the 2 points of stochastic of the RSI, where the difference is by 2 (larger), and averaged out the stochastic's values. In result it is less noisy and more responsive towards the market's momentum.
I hope you guys find this indicator useful! So far this is the best indicator I ever had! And I also learned that simplicity is better than complex blurry/abstract problems. Ciao!
Multi Stochastic AlertHello Everyone,
I have created a Multi Stochastic Alert based on Scalping Strategy
The Strategy uses below 4 Stochastic indicator:
1. Stochastic (9,3)
2. Stochastic (14,3)
3. Stochastic (40,4)
4. Stochastic (60,10)
Trade entry become active when all of these goes below 20 or above 80, In this indicator you don't need to use all 4, this will show red and green background whenever all of them goes below 20 or above 80.
As shown in picture below, it works better when script is making a channel, Our indicator shows green or red signal, we wait for RSI Divergence and we enter. We book when blue line (9,3) goes above 80, as shown by arrow, and trail rest at breakeven or your own trailing method
Same Situation shown for Short side. We book 50% when Blue line (9,3) Goes below 20 and trail rest at breakeven or your own trailing method
Happy trading, Let me know if any improvements required.
Quad Rotation - 4 Stochastics Overlay with ABCD Detection"Quad Rotation - 4 Stochastics Overlay with ABCD Detection" is a momentum indicator combining four separate Stochastics and an ABCD pattern detection system.
Each Stochastic uses different parameter settings to capture potential rotation points in market momentum.
When three or more (this number is user customizable) of these Stochastics simultaneously slope downward above the 80 level (or slope upward below the 20 level), the chart background highlights in red (bearish) or green (bullish), indicating a multi-Stochastic momentum signal.
Additionally, the script tracks Stochastic #4 to detect an ABCD pattern:
Long Pattern (A-B) triggers if Stochastic #4 remains above 90 for a specified number of bars (abBars).
Short Pattern (C-D) triggers if Stochastic #4 remains below 10 for a specified number of bars (cdBars).
Visual markers (green X for long setups, red X for short setups) appear on the chart once these conditions are met. Users can enable alerts to receive real-time notifications whenever momentum signals or ABCD patterns occur.
This combination of multi-Stochastic momentum and ABCD detection helps traders gauge potential trend exhaustion and reversal points with greater confidence.
Multi-Timeframe Stochastic OverviewPurpose of the Multi-Timeframe Stochastic Indicator:
The Multi-Timeframe Stochastic Indicator provides a consolidated view of market conditions across multiple timeframes (M1, M5, M15, H1) based on the Stochastic Oscillator, a popular technical analysis tool. The main objective is to allow traders to quickly assess momentum and potential trend reversals across different timeframes on a single chart, helping to make informed trading decisions.
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General Purpose of Stochastic Oscillator:
The Stochastic Oscillator measures the relationship between a security's closing price and its price range over a given period, aiming to identify momentum, overbought/oversold levels, and potential reversal points. It works on the assumption that:
1. In uptrends, prices tend to close near their highs.
2. In downtrends, prices tend to close near their lows.
It consists of two lines:
%K (fast line): Represents the raw Stochastic value.
%D (slow line): A moving average of %K, used to smooth the data for better signals.
The indicator is generally used to:
Identify Overbought (price above 80% threshold) and Oversold (price below 20% threshold) conditions.
Spot Bullish and Bearish divergences for potential trend reversals.
Evaluate momentum strength within a trend.
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How This Multi-Timeframe Indicator Enhances Stochastic's Utility:
1. Multi-Timeframe Overview:
The indicator calculates Stochastic values for multiple timeframes (1-minute, 5-minute, 15-minute, and 1-hour) and displays their market conditions (e.g., Bullish, Bearish, Overbought, Oversold, or Indecision) in an organized table format.
This gives traders a broad perspective on short-term, mid-term, and long-term trends simultaneously.
2. Market Condition Summary:
Bullish: Indicates upward momentum (both %K and %D > 50%).
Bearish: Indicates downward momentum (both %K and %D < 50%).
Overbought: Suggests potential trend exhaustion (both %K and %D > 80%).
Oversold: Suggests a potential reversal to the upside (both %K and %D < 20%).
Indecision: Highlights uncertainty when %K and %D are on opposite sides of the 50% level.
3. Quick Decision-Making:
The color-coded table (green for Bullish/Overbought, red for Bearish/Oversold, orange for Indecision) allows traders to quickly identify dominant conditions and momentum alignment across timeframes, helping in trade confirmation.
4. Trend Analysis:
By observing alignment or divergence in market conditions across timeframes, traders can gauge the strength of a trend or anticipate reversals. For example:
If all timeframes show "Bullish," it suggests strong momentum.
If smaller timeframes are "Overbought" while larger ones are "Bearish," it warns of a possible pullback.
5. Customizable Parameters:
The indicator allows customization of Stochastic K, D, smoothing values, and overbought/oversold levels, enabling users to tailor the analysis to specific trading styles or market conditions.
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Use Cases:
1. Scalping:
A scalper can use lower timeframes (e.g., M1, M5) to find overbought/oversold zones for quick trades.
2. Swing Trading:
Swing traders can align smaller timeframes with higher ones (e.g., M15 and H1) to confirm momentum before entering a trade.
3. Trend Reversals:
Overbought or oversold conditions across all timeframes may indicate a major reversal point, helping traders plan exits or countertrend entries.
4. Trend Continuation:
Consistent bullish or bearish conditions across all timeframes confirm the continuation of a trend, providing confidence to hold positions.
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Summary:
This indicator enhances the traditional Stochastic Oscillator by giving a multi-timeframe snapshot of market momentum, overbought/oversold conditions, and trend direction. It enables traders to quickly assess the overall market state, spot opportunities, and make more informed trading decisions.
MultiTime Stochastics ProMultiTime Stochastics Pro
This indicator is an enhanced version of the stochastic indicator, featuring two separate stochastics. This functionality allows you to adjust the settings and time frame for each stochastic individually, enabling a more precise analysis of market fluctuations.
The Double Stochastic indicator enables you to simultaneously analyze the market in different time frames with two separate stochastics. One of the standout features of this indicator is that when the chart's time frame changes, each stochastic is displayed according to the time set for it and does not change in other time frames. This feature provides greater flexibility and accuracy in market analysis.
How the Indicator Works
This indicator calculates two separate stochastics:
The first stochastic (K1 and D1) with its own specific time frame and settings.
The second stochastic (K2 and D2) with a different time frame and settings.
These two stochastics are displayed simultaneously on one chart, and overbought and oversold lines are also included.
How to Use
Parameter Adjustment : Adjust the parameters K1 Length, D1 Smoothing, and K1 Time Frame as desired. Do the same for the second stochastic.
Signal Analysis : Analyze buy and sell signals based on the stochastic values and the overbought and oversold lines.
Advantages
Greater Precision : With two separate stochastics, you can follow market fluctuations with greater accuracy.
Flexibility : The ability to individually set the time frame and parameters for each stochastic makes this indicator highly flexible.
Stronger Signals : The simultaneous display of two stochastics allows you to receive stronger buy and sell signals.
Multi-time frame Analysis : The ability to analyze the market in different time frames simultaneously.
This indicator is suitable for traders seeking more precise and flexible market analysis tools. I hope these explanations help you publish your indicator in the best possible way!
4x Stochastic and 1x RSI Buy and Sell SignalsBuy signal (green), when Stochastic 9, 14, 40 and 60 are bellow 20.
Sell signal (red), when Stochastic 9, 14, 40 and 60 are above 80.
Buy signal is larger, when RSI is also bellow 30.
Sell signal is larger, when RSI is also above 70.
Using RSI is optional and can be disabled.
Use this signals when confirmed by another indicators, like support and resistance levels, EMAs and fundamental analysis.
Higher Timeframe Stochastics with Slope ColorThis script displays the Stochastic K value of a user-defined higher timeframe and colors the plot based on its slope, providing a unique way to visualize higher timeframe momentum on the current chart.
What makes it unique?
While many scripts display higher timeframe indicators, this script goes a step further by visually highlighting the *slope* of the higher timeframe Stochastic K. This allows traders to quickly assess the direction and strength of the higher timeframe momentum without switching timeframes or manually comparing values.
Features:
* **Primary Function:** Displays the Stochastic K value from a selected higher timeframe.
* **Secondary Function:** Colors the Stochastic K plot based on its slope compared to the previous confirmed value:
* Green: The current Stochastic K value is higher than the previous confirmed value, indicating increasing upward momentum on the higher timeframe.
* Red: The current Stochastic K value is lower than the previous confirmed value, indicating increasing downward momentum on the higher timeframe.
How it works:
* The script calculates the Stochastic K value using the standard formula with user-defined length and the selected higher timeframe.
* It then compares the current higher timeframe Stochastic K value with the *previous confirmed* value obtained using `request.security` with `lookahead=barmerge.lookahead_on`.
* The difference between these two values determines the slope, which is then represented by the color of the plot.
How to Use:
1. Add this script to your chart.
2. Configure the "Higher Timeframe" and "Stochastic Length" in the script settings.
3. Observe the plot of the higher timeframe Stochastic K value and its color changes. The color provides a quick visual cue of the higher timeframe momentum's direction.
Important Note about `request.security` and `lookahead=barmerge.lookahead_on`:
This script uses `request.security(..., lookahead=barmerge.lookahead_on)` to obtain the *previous confirmed* value of the higher timeframe Stochastic K. This is crucial for accurately calculating the slope. While `lookahead=barmerge.lookahead_on` can introduce lookahead bias on historical bars when used with non-offset expressions, in this case, it's used to access the *last confirmed value* of the higher timeframe, which is a valid and necessary approach for this calculation. The current higher timeframe value is then compared to this *already confirmed* past value, ensuring that the slope calculation and the resulting color changes are based on reliable data and do not repaint.
このスクリプトは、ユーザーが設定した上位時間足のストキャスティクス K 値を表示し、その傾きに基づいてプロットに色を付けることで、現在のチャート上で上位時間足のモメンタムを視覚化する独自の方法を提供します。
独自性:
多くのスクリプトが上位時間足のインジケーターを表示しますが、このスクリプトは上位時間足のストキャスティクス K の*傾き*を視覚的に強調することで、一歩進んだ機能を提供します。これにより、トレーダーは時間足を切り替えたり、手動で値を比較したりすることなく、上位時間足のモメンタムの方向と強さを素早く評価できます。
特徴:
* **主な機能:** 選択した上位時間足のストキャスティクス K 値を表示します。
* **補助的な機能:** 前回の確定値と比較した傾きに基づいて、ストキャスティクス K のプロットに色を付けます。
* 緑: 現在のストキャスティクス K 値が前回の確定値より高く、上位時間足で上昇モメンタムが増加していることを示します。
* 赤: 現在のストキャスティクス K 値が前回の確定値より低く、上位時間足で下降モメンタムが増加していることを示します。
仕組み:
* スクリプトは、ユーザー定義の期間と選択された上位時間足を使用して、標準的な計算式でストキャスティクス K 値を計算します。
* 次に、現在の高次時間枠のストキャスティクス K 値を、`request.security` と `lookahead=barmerge.lookahead_on` を使用して取得した*前回の確定値*と比較します。
* これら 2 つの値の差が傾きを決定し、プロットの色で表されます。
使い方:
1. このスクリプトをチャートに追加します。
2. スクリプトの設定で「上位時間枠」と「ストキャスティクスの期間」を設定します。
3. 上位時間足のストキャスティクス K 値のプロットとその色の変化を観察します。色は、上位時間足のモメンタムの方向を素早く視覚的に示します。
`request.security` と `lookahead=barmerge.lookahead_on` に関する重要な注意事項:
このスクリプトは、`request.security(..., lookahead=barmerge.lookahead_on)` を使用して、上位時間足のストキャスティクス K の*前回の確定値*を取得します。これは、傾きを正確に計算するために重要です。`lookahead=barmerge.lookahead_on` は、非オフセット式で使用すると過去のバーでルックアヘッドバイアスを引き起こす可能性がありますが、この場合、上位時間足の*最後の確定値*にアクセスするために使用されており、この計算には有効かつ必要なアプローチです。現在の高次時間枠の値は、この*既に確定した*過去の値と比較されるため、傾きの計算と結果として生じる色の変化は、信頼できるデータに基づいており、リペイントしないことが保証されます。
Soul Button Scalping (1 min chart) V 1.0Indicator Description
- P Signal: The foundational buy signal. It should be confirmed by observing RSI divergence on the 1-minute chart.
- Green, Orange, and Blue Signals: Three buy signals generated through the combination of multiple oscillators. These signals should also be cross-referenced with the RSI on the 1-minute chart.
- Big White and Big Yellow Signals: These represent strong buy signals, triggered in extreme oversold conditions.
- BEST BUY Signal: The most reliable and powerful buy signal available in this indicator.
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Red Sell Signal: A straightforward sell signal indicating potential overbought conditions.
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Usage Guidance
This scalping indicator is specifically designed for use on the 1-minute chart, incorporating data from the 5-minute chart for added context. It is most effective when used in conjunction with:
• VWAP (Volume Weighted Average Price), already included in the indicator.
• RSI on the 1-minute chart, which should be opened as a separate indicator.
• Trendlines, structure breakouts, and price action analysis to confirm signals.
Intended for Crypto Scalping:
The indicator is optimized for scalping cryptocurrency markets.
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Future Enhancements:
• Integration of price action and candlestick patterns.
• A refined version tailored for trading futures contracts, specifically ES and MES in the stock market.
Dual Timeframe Stochastic Momentum Index w/buy sell signalsThis indicator combines momentum analysis across two timeframes to identify high-probability trading opportunities. It plots the Stochastic Momentum Index (SMI) for both the chart timeframe and a higher timeframe (default 10 minutes) to help traders align with the broader market trend.
Key Features
Displays SMI and its EMA for both timeframes
Background shading indicates favorable trading conditions
Signal dots mark potential entry points
Customizable parameters for fine-tuning
Signals Explained
Bullish Signals (Green Dots)
Appear when the chart timeframe SMI crosses above its EMA
Only trigger during periods when the higher timeframe shows:
SMI is above its EMA (increasing momentum)
SMI is between -40 and +40 (not overbought/oversold)
Bearish Signals (Red Dots)
Appear when the chart timeframe SMI crosses below its EMA
Only trigger during periods when the higher timeframe shows:
SMI is below its EMA (decreasing momentum)
SMI is between -40 and +40 (not overbought/oversold)
Settings
%K Length: Lookback period for SMI calculation (default: 10)
%D Length: Smoothing period for primary calculation (default: 3)
EMA Length: Smoothing period for signal line (default: 3)
Alternative Timeframe: Higher timeframe for trend analysis (default: 10 minutes)
Best Practices
Use higher timeframe signals to determine market bias
Wait for signal dots in the chart timeframe for entry timing
Avoid trades when higher timeframe SMI is in extreme zones (above 40 or below -40)
Consider additional confirmation from price action or other indicators
Note: This indicator combines trend and momentum analysis but should be used as part of a complete trading strategy that includes proper risk management.
SMI Ergodic Indicator/Oscillator▮ Introduction
The Stochastic Momentum Index Ergodic Indicator (SMII) is a technical analysis tool designed to predict trend reversals in the price of an asset.
It functions as a momentum oscillator, measuring the ratio of the smoothed price change to the smoothed absolute price change over a given number of previous periods.
The Ergodic SMI is based on the True Strength Index (TSI) and integrates a signal line, which is an exponential moving average (EMA) of the SMI indicator itself.
It provides a clearer picture of market trends than the traditional stochastic oscillator by incorporating the concept of "ergodicity", which helps remove market noise.
On ther other hand, the Stochastic Momentum Index Ergodic Oscillator (SMIO) is a histogram that measures the difference between TSI and it's signal line.
By default, in TradingView both SMII and SMIO are provided independently.
Here in this script these two indicators are combined, providing a more comprehensive view of price direction and market strength.
▮ Motivation: why another indicator?
The intrinsic value of this indicator lies in the fact that it allows fine adjustments in both calculation parameters, data source and visualization, features that are not present in the standard indicators or similar.
Also, trend lines breakouts and divergences detector were added.
▮ What to look for
When using the indicator, there are a few things to look out for.
First, look at the SMI signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMI and the price.
If price is rising but the SMI is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMI is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
Divergences can be considered in both indicator and/or histogram.
Examples:
▮ Notes
The indicator presented here offers both the "SMII" and the "SMIO", that is, the "Stochastic Momentum Index Ergodic Indicator" together with the "Stochastic Momentum Index Ergodic Oscillator" (histogram), as per the documentation described in reference links.
So it is important to highlight the differences in relation to my other indicator, Stochastic Momentum Index (SMI) Refurbished .
This last one is purely based on the **SMI**, which is implemented using smoothed ratio between the relative range and the high/low range.
Although they may seem the same in some situations, the calculation is actually different. The TSI tends to be more responsive at the expense of being noisier, while the SMI tends to be smoother. Which of these two indicators is best depends on the situation, the context, and the analyst's personal preference.
Please refer to reference links to more info.
▮ References
SMI documentation
SMII documentation
SMIO documentation
Stochastic RMIThe Relative Momentum Index (RMI) is a technical analysis indicator used to analyze the price movements of assets in a financial market. Similar to the RSI (Relative Strength Index), it helps measure the momentum and strength of the asset's price movements over the recent period. However, the RMI offers a "smoother" view, unlike the RSI. This means that there is less "noise" in the indicator.
As is known, the Stochastic RSI indicator is based on the RSI. What I did was to create a stochastic based on the RMI. If you compare this indicator with the "Stochastic RSI", you will see that there is no difference between them, except that the "Stochastic RMI" is more "smooth" and noiseless.
SMI Ergodic Indicator/Oscillator of Money Flow Index▮ Introduction
The Stochastic Momentum Index Ergodic (SMII) indicator is a technical analysis tool designed to predict trend reversals in the price of an asset.
It functions as a momentum oscillator, measuring the ratio of the smoothed price change to the smoothed absolute price change over a given number of previous periods.
The Ergodic SMI is based on the True Strength Index (TSI) and integrates a signal line, which is an exponential moving average (EMA) of the SMI indicator itself.
The Ergodic SMI oscillator provides a clearer picture of market trends than the traditional stochastic oscillator by incorporating the concept of 'ergodicity', which helps remove market noise.
On ther other hand, MFI (Money Flow Index) is a technical analysis indicator used to measure the inflow of money into an asset and thus help identify buying and selling pressure in a given financial instrument.
When these two indicators are combined, they can provide a more comprehensive view of price direction and market strength.
▮ Motivation: why another indicator?
By combining SMII with MFI, we can gain even more insights into the market.
One way to do this is to use the MFI as an input to the SMII, rather than just using price.
This means we are measuring momentum based on buying and selling pressure rather than just price.
Furthermore, there is the possibility of making several fine adjustments to both the calculation and visualization parameters that are not present in other indicators.
▮ What to look for
When using the SMII MFI indicator, there are a few things to look out for.
First, look at the SMII signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMII and the price.
If price is rising but the SMII is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMII is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
Divergences can be considered in both indicator and/or histogram.
Examples:
▮ Notes
The indicator presented here offers both the 'SMII' and the 'SMIO', that is, the 'Stochastic Momentum Index Ergodic Indicator' together with the 'Stochastic Momentum Index Ergodic Oscillator' (histogram), as per the documentation described in reference links.
So it is important to highlight the differences in relation to my other indicator, the 'Stochastic Momentum Index (SMI) of Money Flow Index (MFI)':
This last one is purely based on the SMI , which is implemented using SMA smoothing for the relative range and the high/low range.
Although they may seem the same in some situations, the calculation is actually different. The TSI tends to be more responsive at the expense of being noisier, while the SMI tends to be smoother. Which of these two indicators is best depends on the situation, the context, and the analyst's personal preference.
Please refer to reference links to more info.
▮ References
SMI documentation
SMII documentation
SMIO documentation
MFI documentation
Advanced Stochastic ForLoopAdvanced Stochastic ForLoop
OVERVIEW
Advanced Stochastic ForLoop is an improved version of Stochastic it is designed to calculate an array of values 1 or -1 depending if soruce for calculations is above or below basis.
It takes avereage of values over a range of lengths, providing trend signals smothed based on various moving averages in order to get rid of noise.
It offers flexibility with different signal modes and visual customizations.
TYPE OF SIGNALS
-FAST (MA > MA or MA > 0.99)
-SLOW (MA > 0)
-THRESHOLD CROSSING (set by user treshold for both directions)
-FAST THRESHOLD (when theres an change in signal by set margin e.g 0.4 -> 0.2 means bearsih when FT is set to 0.1, when MA is > 0.99 it will signal bullish, when MA < -0.99 it will signal bearish)
Generaly Lime color of line indicates Bullish, Fuchsia indicates Bearish.
This colors are not set in stone so you can change them in settings.
Alerts included when line color is:
-Bullish Trend, line color is lime
-Bearish Trend, line color is fuchsia
Credit
Idea for this script was from one of indicators created by www.tradingview.com
Warning
This indicator can be really noisy depending on the settings, signal mode so it should be used preferably as a part of an strategy not as a stand alone indicator
Remember the lower the timeframe you use the more noise there is.
No single indicator should be used alone when making investment decisions.
Adaptive RSI-Stoch with Butterworth Filter [UAlgo]The Adaptive RSI-Stoch with Butterworth Filter is a technical indicator designed to combine the strengths of the Relative Strength Index (RSI), Stochastic Oscillator, and a Butterworth Filter to provide a smooth and adaptive momentum-based trading signal. This custom-built indicator leverages the RSI to measure market momentum, applies Stochastic calculations for overbought/oversold conditions, and incorporates a Butterworth Filter to reduce noise and smooth out price movements for enhanced signal reliability.
By utilizing these combined methods, this indicator aims to help traders identify potential market reversal points, momentum shifts, and overbought/oversold conditions with greater precision, while minimizing false signals in volatile markets.
🔶 Key Features
Adaptive RSI and Stochastic Oscillator: Calculates RSI using a configurable period and applies a dual-smoothing mechanism with Stochastic Oscillator values (K and D lines).
Helps in identifying momentum strength and potential trend reversals.
Butterworth Filter: An advanced signal processing filter that reduces noise and smooths out the indicator values for better trend identification.
The filter can be enabled or disabled based on user preferences.
Customizable Parameters: Flexibility to adjust the length of RSI, the smoothing factors for Stochastic (K and D values), and the Butterworth Filter period.
🔶 Interpreting the Indicator
RSI & Stochastic Calculations:
The RSI is calculated based on the closing price over the user-defined period, and further smoothed to generate Stochastic Oscillator values.
The K and D values of the Stochastic Oscillator provide insights into short-term overbought or oversold conditions.
Butterworth Filter Application:
What is Butterworth Filter and How It Works?
The Butterworth Filter is a type of signal processing filter that is designed to have a maximally flat frequency response in the passband, meaning it doesn’t distort the frequency components of the signal within the desired range. It is widely used in digital signal processing and technical analysis to smooth noisy data while preserving the important trends in the underlying data. In this indicator, the Butterworth Filter is applied to the trigger value, making the resulting signal smoother and more stable by filtering out short-term fluctuations or noise in price data.
Key Concepts Behind the Butterworth Filter:
Filter Design: The Butterworth filter works by calculating weighted averages of current and past inputs (price or indicator values) and outputs to produce a smooth output. It is characterized by the absence of ripple in the passband and a smooth roll-off after the cutoff frequency.
Cutoff Frequency: The period specified in the indicator acts as a control for the cutoff frequency. A higher period means the filter will remove more high-frequency noise and retain longer-term trends, while a lower period means it will respond more to short-term fluctuations in the data.
Smoothing Process: In this script, the Butterworth Filter is calculated recursively using the following formula,
butterworth_filter(series float input, int period) =>
float wc = math.tan(math.pi / period)
float k1 = 1.414 * wc
float k2 = wc * wc
float a0 = k2 / (1 + k1 + k2)
float a1 = 2 * a0
float a2 = a0
float b1 = 2 * (k2 - 1) / (1 + k1 + k2)
float b2 = (1 - k1 + k2) / (1 + k1 + k2)
wc: This is the angular frequency, derived from the period input.
k1 and k2: These are intermediate coefficients used in the filter calculation.
a0, a1, a2: These are the feedforward coefficients, which determine how much of the current and past input values will contribute to the filtered output.
b1, b2: These are feedback coefficients, which determine how much of the past output values will contribute to the current output, effectively allowing the filter to "remember" past behavior and smooth the signal.
Recursive Calculation: The filter operates by taking into account not only the current input value but also the previous two input values and the previous two output values. This recursive nature helps it smooth the signal by blending the recent past data with the current data.
float filtered_value = a0 * input + a1 * prev_input1 + a2 * prev_input2
filtered_value -= b1 * prev_output1 + b2 * prev_output2
input: The current input value, which could be the trigger value in this case.
prev_input1, prev_input2: The previous two input values.
prev_output1, prev_output2: The previous two output values.
This means the current filtered value is determined by the combination of:
A weighted sum of the current input and the last two inputs.
A correction based on the last two output values to ensure smoothness and remove noise.
In conclusion when filter is enabled, the Butterworth Filter smooths the RSI and Stochastic values to reduce market noise and highlight significant momentum shifts.
The filtered trigger value (post-Butterworth) provides a cleaner representation of the market's momentum.
Cross Signals for Trade Entries:
Buy Signal: A bullish crossover of the K value above the D value, particularly when the values are below 40 and when the Stochastic trigger is below 1 and the filtered trigger is below 35.
Sell Signal: A bearish crossunder of the K value below the D value, particularly when the values are above 60 and when the Stochastic trigger is above 99 and the filtered trigger is above 90.
These signals are plotted visually on the chart for easy identification of potential trading opportunities.
Overbought and Oversold Zones:
The indicator highlights the overbought zone when the filtered trigger surpasses a specific threshold (typically above 100) and the oversold zone when it drops below 0.
The color-coded fill areas between the Stochastic and trigger lines help visualize when the market may be overbought (likely a reversal down) or oversold (potential reversal up).
🔶 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.
Pulse Oscillator [UAlgo]The "Pulse Oscillator " is a trading tool designed to capture market momentum and trend changes by combining the strengths of multiple well-known technical indicators. By integrating the RSI (Relative Strength Index), CCI (Commodity Channel Index), and Stochastic Oscillator, this indicator provides traders with a comprehensive view of market conditions, offering both trend filtering and precise buy/sell signals. The oscillator is customizable, allowing users to fine-tune its parameters to match different trading strategies and timeframes. With its built-in smoothing techniques and level adjustments, the Pulse Oscillator aims to be a reliable tool for both trend-following and counter-trend trading strategies.
🔶 Key Features
Multi-Indicator Integration: Combines RSI, CCI, and Stochastic Oscillator to create a weighted momentum oscillator.
Why Use Multi-Indicator Integration?
Script uses Multi-Indicator Integration to combine the strengths of different technical indicators—such as RSI, CCI, and Stochastic Oscillator—into a single tool. This approach helps to reduce the weaknesses of individual indicators, providing a more comprehensive and reliable analysis of market conditions. By integrating multiple indicators, we can generate more accurate signals, filter out noise, and enhance our trading decisions.
Customizable Parameters: Allows users to adjust weights, periods, and smoothing techniques, providing flexibility to adapt the indicator to various market conditions.
Trend Filtering Option: An optional trend filter is available to enhance the accuracy of buy and sell signals, reducing the risk of false signals in choppy markets.
Dynamic Levels: The indicator dynamically calculates multiple levels of support and resistance, adjusting to market conditions with customizable decay factors and offsets.
Visual Clarity: The indicator visually represents different levels and trends with color-coded plots and fills, making it easier for traders to interpret market conditions at a glance.
Alerts: Configurable alerts for buy and sell signals, as well as trend changes, enabling traders to stay informed of key market movements without constant monitoring.
🔶 Interpreting the Indicator
Buy Signal: A buy signal is generated when the Slow Line crosses under the Fast Line during an uptrend or when the trend filter is disabled. This indicates a potential bullish reversal or continuation of an upward trend.
Sell Signal: A sell signal occurs when the Slow Line crosses above the Fast Line during a downtrend or when the trend filter is disabled, signaling a potential bearish reversal or continuation of a downward trend.
Trend Change: The indicator detects trend changes when the Fast Line shifts from increasing to decreasing or vice versa, providing early warning of possible market reversals.
Dynamic Levels: The indicator calculates upper and lower levels based on the Fast Line's values. These levels can be used to identify overbought or oversold conditions and potential areas of support or resistance.
🔶 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 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
