Market Smith IndicatorsMarket Smith has a collection of tools that are useful for identifying stocks. On their charts they have a 21/50/200 day moving averages, high and low pivot points, a relative strength line, and a relative strength rating. This script contains indicators for the following:
21/50/200 Day Moving Averages
High and Low pivot points
A Relative Strength line
A Relative Strength rating
21/50/200 Day Moving Averages
The 21/50/200 Day moving averages are simple moving averages. They are visible in any chart increment but to use them properly you need to set you charts to be by day. Labels will appear on the right of the lines to show that they are representative of 21/50/200 day moving averages.
High and Low pivot points
The High and Low pivot points are green for high pivot points and red for low points. They are show in the Market Smith style with the numbers simply above the pivot points.
Relative Strength line
The Relative Strength line is a line that shows the strength of the stock compared to the S&P 500. In this case we utilize the SPX ticker to compare the stock to. This line is almost identical to the Market Smith tool and is an excellent tool to determine how a stock is doing compared to the market. When movements in the stock and shown with sideways trending of the RS line that means that the stock is following the market. When a stock is outperforming the market the RS line will follow.
Relative Strength rating
Thank you to ©Fred6724 for the RS Rating inspiration. They wrote excellent open source code for a RS Rating comparable to Market Smith. As the RS Rating in Market Smith is not open source it is difficult to know exactly how it is being calculated. After simplifying Fred's code and building upon a few ideas I had I compared the RS Rating to multiple Market Smith Ratings. The rating is close but often off by multiple points. If there is anyone who has a better idea on how to get this rating or how to improve on the code please send me a PM or fork this project. This rating is a good indicator to see how a certain stock compares to other stocks in the market. In Market Smith they are able to utilize their database to compare it to all other stocks. Since we do not have access to the same tools we are only able to compare it to the percentage of stocks above the 200, 150, 100, 50, and 20 day moving average.
Using these tools together are a small fraction what make people like Bill O'neill and Jim Roppel so successful. I plan on updating the RS Rating as I continue to work on this project so if there is anyone who has ideas then please send me a PM. Ultimately the goal of this project is to have a solution that is identical to Market Smith.
Relativestrength
RSI Divergence Screener by zdmreThis screener tracks the following for up to 20 assets:
-All selected tickers will be screened in same timeframes (as in the chart).
-Values in table indicate that how many days passed after the last Bullish or Bearish of RSI Divergence.
For example, when BTCUSDT appears Bullish-Days Ago (15) , Bitcoin has switched to a Bullish Divergence signal 15 days ago.
Thanks to @QuantNomad and @MUQWISHI for building the base for this screener.
*Use it at your own risk
Note:
Screener shows the information about the RSI Divergence Scanner by zdmre with default settings.
Based indicator:
@tk · fractal rsi levels█ OVERVIEW
This script is an indicator that helps traders to identify the RSI Levels for multiple fractals wherever the current timeframe is. This script was based on RSI Levels, 20-30 & 70-80 by abdomi indicator, that calculates the Relative Strenght Index levels based on the asset's price and plots it into the chart, creating a "wave" style indicator. The core feature of this indicator is the fractal rays, so trader can visualize each of the oversold and overbought levels of multiple timeframe on the current timeframe that he is on. The indicator will plots multiple rays after the chart bars. indicating where is the oversold and overbought levels for others fractals.
█ MOTIVATION
Since the RSI Levels, 20-30 & 70-80 by abdomi indicator helps a lot to identify the possible price levels when the asset is oversold or overbought, I saw myself drawing multiple horizontal lines on these levels in lower timeframes so, in an uptrend or downtrend, I can try to get a pullback of these trends when the asset reaches oversold or overboght levels. So, I get the idea to make those lines visible in multiple timeframes so I don't need to draw it myself manually anymore.
█ CONCEPT
The trading concept to use this indicator is the concept to make entries on uptrend or downtrend pullbacks when the asset price reaches oversold or overbought levels. But this strategy don't works alone. It needs to be aligned together with others indicators like Exponential Moving Averages, Chart Patterns, Support and Resistance, and so on... Even more confluences that you have, bigger are your chances to increase the probability for a successful trade. So, don't use this indicator alone. Compose a trading strategy and use it to improve your analysis.
█ CUSTOMIZATION
This indicator allows the trader to customize the following settings:
GENERAL
Text size
Changes the font size of the labels to improve accessibility.
Type: string
Options: `tiny`, `small`, `normal`, `large`.
Default: `small`
RSI LEVELS · SETTINGS
Pre-oversold Level
Changes the RSI Level to calculate the "pre-oversold" price level on the chart.
Type: int
Min: 1
Max: 49
Default: 33
Pre-overbought Level
Changes the RSI Level to calculate the "pre-overbought" price level on the chart.
Type: int
Min: 51
Max: 100
Default: 67
Show "Pre-over" Levels
Enables / Disables the pre-oversold and pre-overbought levels on the chart.
Type: bool
Default: true
FRACTAL RAYS · SETTINGS
Length
Changes the base length for the RSI calculation.
Type: int
Min: 1
Default: 14
Source
Changes the base source for the RSI calculation.
Type: float
Default: close
FRACTAL RAYS · STYLE
Ray Color
Changes the color of all fractal rays and its label.
Type: color
Default: color.rgb(187, 74, 207)
Ray Style
Changes the style of all fractal rays.
Type: string
Options: `line.style_solid`, `line.style_dashed`, `line.style_dotted`
Default: line.style_dotted
Ray Length
Changes the length of all fractal rays.
Type: int
Default: 15
FRACTAL RAYS · OVERSOLD
Oversold Level
Changes the base RSI Level for fractal rays calculation.
Type: int
Min: 1
Default: 30
Oversold Prefix
Customizes the fractal ray label with a prefix text.
Type: string
Default: 🚀
Oversold Suffix
Customizes the fractal ray label with a suffix text.
Type: string
Default: (empty)
FRACTAL RAYS · OVERBOUGHT
Overbought Level
Changes the base RSI Level for fractal rays calculation.
Type: int
Min: 1
Default: 70
Overbought Prefix
Customizes the fractal ray label with a prefix text.
Type: string
Default: 🐻
Overbought Suffix
Customizes the fractal ray label with a suffix text.
Type: string
Default: (empty)
FRACTAL RAYS · VISIBILITY RULES
These rules are applied for each of fractal rays so, the traders can choose what timeframes they wants to show the fractal rays for each of it. The rule will be applied as the following condition: `if timeframe != CURRENT_TIMEFRAME and timeframe <= CHOSEN_OPTION`. Actually, the fractal rays are on the chart but, isn't visible because it was applied a transparent color, so it is visually not on the chart to prevent chart's over polution.
LABELS
Show Labels on Price Scale
Shows labels on price scale.
Type: bool
Default: false
Show Price on Fractal Rays
Shows the RSI Level price on each of fractal rays respectively.
Type: bool
Default: false
█ EXTERNAL LIBRARIES
This script uses the `tk` library to calculate RSI Levels. It is a library that contains various functions that helps pine script developers to calculate RSI Levels.
█ FUNCTIONS
The library contains the following functions:
fn_fractalVisibilityRule(string visibilityRule)
Converts the fractal rays timeframe visibility rule label to timestamp int.
Parameters:
visibilityRule: (string) Fractal ray visibility rule label.
Returns: (int) Fractal ray visibility rule timestamp.
fn_requestFractal(string period, expression)
Converts the fractal rays timeframe visibility rule label to timestamp int.
Parameters:
period: (string) Timeframe period for the desired fractal.
expression: (mixed) Security expression that will be applied for calculation.
Returns: (mixed) A result determined by expression.
fn_plotRay(float y, string label, color color, int length)
Plots ray after chart bars for the current time.
Parameters:
period: (string) Timeframe period for the desired fractal.
expression: (mixed) Security expression that will be applied for calculation.
Returns: (void) This function only plots the elements into the chart
fn_plotRsiLevelRay(simple string period, simple int level, color color)
Plots RSI Levels ray after chart bars for the current time.
Parameters:
period: (simple string) Timeframe period.
level: (simple int) Relative Strength Index level.
color: (color) The color of both, ray and label text.
Returns: (void) This function only plots the elements into the chart
Rough AverageThe Rough Average indicator is a unique technical tool that calculates a modified average to provide insights into market conditions. It incorporates a combination of mathematical operations and existing indicators to offer traders a different perspective on price movements.
The Rough Average indicator aims to capture market dynamics through a specific calculation method. It utilizes two main components: a check for the approximate scale of the price and a profile calculation based on the Relative Strength Index (RSI) of the closing price.
Methodology:
Approximate Scale: The indicator determines the approximate scale of the price by analyzing the magnitude of the closing price. This step involves a mathematical process that identifies the power of 10 that best represents the scale. This function reduces overall lag and gives a better smoothing to the output of the calculation
Profile Calculation: The indicator calculates a profile value by summing the absolute values of the RSI of the closing price over a specified period. The RSI provides insights into the strength or weakness of price movements. The profile calculation considers a range of prices based on the determined scale.
Indicator Calculation:
The Rough Average is derived by applying the Exponential Moving Average (EMA) to the calculated profile. The EMA is a smoothing technique that emphasizes recent price data. The resulting value represents the modified average of the indicator.
Utility:
The Rough Average indicator offers traders an alternative perspective on market conditions. By utilizing a modified average calculation, it can reveal potential trends, reversals, or periods of market strength or weakness. Traders can use the Rough Average to complement their analysis and identify possible trading opportunities.
It is important to note that the effectiveness of the Rough Average indicator may vary depending on the specific market and trading strategy. It is recommended to combine its analysis with other technical indicators and conduct thorough testing before making trading decisions.
Key Features:
Customizable OB\OS Levels
Bar coloring methods: Trend, Reversions, Extremities
Example Charts:
RSI Momentum TrendThe "RSI Momentum Trend" indicator is a valuable tool for traders seeking to identify momentum trends.
By utilizing the Relative Strength Index (RSI) and customizable momentum thresholds, this indicator helps traders spot potential bullish and bearish signals.
you can adjust input parameters such as the RSI period, positive and negative momentum thresholds, and visual settings to align with their trading strategies.
The indicator calculates the RSI and evaluates two momentum conditions: positive and negative.
The positive condition considers the previous RSI value, current RSI value, and positive change in the 5-period exponential moving average (EMA) of the closing price.
The negative condition looks at the current RSI value and negative change in the 5-period EMA.
Once a momentum condition is met, the indicator visually represents the signal on the chart.
The "RSI Momentum Trend" indicator provides you with a quick and effective way to identify momentum trends using RSI calculations.
By incorporating visual cues and customizable parameters, it assists traders in making informed decisions about potential market movements.
Relative Trend Index (RTI) by Zeiierman█ Overview
The Relative Trend Index (RTI) developed by Zeiierman is an innovative technical analysis tool designed to measure the strength and direction of the market trend. Unlike some traditional indicators, the RTI boasts a distinctive ability to adapt and respond to market volatility, while still minimizing the effects of minor, short-term market fluctuations.
The Relative Trend Index blends trend-following and mean-reverting characteristics, paired with a customizable and intuitive approach to trend strength, and its sensitivity to price action makes this indicator stand out.
█ Benefits of using this RTI instead of RSI
The Relative Strength Index (RSI) and the Relative Trend Index (RTI) are both powerful technical indicators, each with its own unique strengths.
However, there are key differences that make the RTI arguably more sophisticated and precise, especially when it comes to identifying trends and overbought/oversold (OB/OS) areas.
The RSI is a momentum oscillator that measures the speed and change of price movements and is typically used to identify overbought and oversold conditions in a market. However, its primary limitation lies in its tendency to produce false signals during extended trending periods.
On the other hand, the RTI is designed specifically to identify and adapt to market trends. Instead of solely focusing on price changes, the RTI measures the relative positioning of the current closing price within its recent range, providing a more comprehensive view of market conditions.
The RTI's adaptable nature is particularly valuable. The user-adjustable sensitivity percentage allows traders to fine-tune the indicator's responsiveness, making it more resilient to sudden market fluctuations and noise that could otherwise produce false signals. This feature is advantageous in various market conditions, from trending to choppy and sideways-moving markets.
Furthermore, the RTI's unique method of defining OB/OS zones takes into account the prevailing trend, which can provide a more precise reflection of the market's condition.
While the RSI is an invaluable tool in many traders' toolkits, the RTI's unique approach to trend identification, adaptability, and enhanced definition of OB/OS zones can provide traders with a more nuanced understanding of market conditions and potential trading opportunities. This makes the RTI an especially powerful tool for those seeking to ride long-term trends and avoid false signals.
█ Calculations
In summary, while simple enough, the math behind the RTI indicator is quite powerful. It combines the quantification of price volatility with the flexibility to adjust the trend sensitivity. It provides a normalized output that can be interpreted consistently across various trading scenarios.
The math behind the Relative Trend Index (RTI) indicator is rooted in some fundamental statistical concepts: Standard Deviation and Percentiles.
Standard Deviation: The Standard Deviation is a measure of dispersion or variability in a dataset. It quantifies the degree to which each data point deviates from the mean (or average) of the data set. In this script, the standard deviation is computed on the 'close' prices over a specified number of periods. This provides a measure of the volatility in the price over that period. The higher the standard deviation, the more volatile the price has been.
Percentiles: The percentile is a measure used in statistics indicating the value below which a given percentage of observations in a group falls. After calculating the upper and lower trends for the last 'length' periods and sorting these values, the script uses the 'Sensitivity ' parameter to extract percentiles from these sorted arrays. This is a powerful concept because it allows us to adjust the sensitivity of our signals. By choosing different percentiles (controlled through the 'Sensitivity' parameter), we can decide whether we want to react only to extreme events (high percentiles) or be more reactive and consider smaller deviations from the norm as significant (lower percentiles).
Finally, the script calculates the Relative Trend Index value, which is essentially a normalized measure indicating where the current price falls between the upper and lower trend values. This simple ratio is incredibly powerful as it provides a standardized measure that can be used across different securities and market conditions to identify potential trading signals.
Core Components
Trend Data Count: This parameter denotes the number of data points used in the RTI's calculation, determining the trend length. A higher count captures a more extended market view (long-term trend), providing smoother results that are more resistant to sudden market changes. In contrast, a lower count focuses on more recent data (short-term trend), yielding faster responses to market changes, albeit at the cost of increased susceptibility to market noise.
Trend Sensitivity Percentage: This parameter is employed to select the indices within the trend arrays used for upper and lower trend definitions. By adjusting this value, users can affect the sensitivity of the trend, with higher percentages leading to a less sensitive trend.
█ How to use
The RTI plots a line that revolves around a mid-point of 50. When the RTI is above 50, it implies that the market trend is bullish (upward), and when it's below 50, it indicates a bearish (downward) trend. Furthermore, the farther the RTI deviates from the 50 line, the stronger the trend is perceived to be.
Bullish
Bearish
The RTI includes user-defined Overbought and Oversold levels. These thresholds suggest potential trading opportunities when they are crossed, serving as a cue for traders to possibly buy or sell. This gives the RTI an additional use case as a mean-reversion tool, in addition to being a trend-following indicator.
In short
Trend Confirmation and Reversals: If the percentage trend value is consistently closer to the upper level, it can indicate a strong uptrend. Similarly, if it's closer to the lower level, a downtrend may be in play. If the percentage trend line begins to move away from one trend line towards the other, it could suggest a potential trend reversal.
Identifying Overbought and Oversold Conditions: When the percentage trend value reaches the upper trend line (signified by a value of 1), it suggests an overbought condition - i.e., the price has been pushed up, perhaps too far, and could be due for a pullback, or indicating a strong positive trend. Conversely, when the percentage trend value hits the lower trend line (a value of 0), it indicates an oversold condition - the price may have been driven down and could be set to rebound, or indicate a strong negative trend. Traders often use these overbought and oversold signals as contrarian indicators, considering them potential signs to sell (in overbought conditions) or buy (in oversold conditions). If the RTI line remains overbought or oversold for an extended period, it indicates a strong trend in that direction.
█ Settings
One key feature of the RTI is its configurability. It allows users to set the trend data length and trend sensitivity.
The trend data length represents the number of data points used in the trend calculation. A longer trend data length will reflect a more long-term trend, whereas a shorter trend data length will capture short-term movements.
Trend sensitivity refers to the threshold for determining what constitutes a significant trend. High sensitivity levels will deem fewer price movements as significant, hence making the trend less sensitive. Conversely, low sensitivity levels will deem more price movements as significant, hence making the trend more sensitive.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Volume Spike, Price Move >3% Spike with Vol & Gap Up IdentifierTitle: Identifying Volume Spikes, Price Movements and Gap Ups: A TradingView Script
Introduction:
In the world of trading, identifying volume spikes and price movements can provide valuable insights into market trends and potential trading opportunities. In this article, we'll explore a TradingView script that helps traders visualize volume spikes, price up moves with volume spikes, and gap-up days on their charts.
Detecting Price Up Moves:
The script starts by calculating price up moves. It compares the current day's closing price with the previous day's closing price and checks if it has increased by 3% or more. This helps traders spot significant upward price movements.
Detecting Volume Spurts:
Next, the script focuses on detecting volume spikes, which are often associated with increased market activity and potential trading opportunities. It compares the current day's volume with the highest volume of the previous nine sessions. If the current volume exceeds all the volumes of the previous nine sessions, it is considered a volume spurt.
Example:
Let's consider a hypothetical scenario where we have the following volume data for a stock:
Day 1: 100,000
Day 2: 80,000
Day 3: 120,000
Day 4: 150,000
Day 5: 200,000
Day 6: 90,000
Day 7: 110,000
Day 8: 130,000
Day 9: 140,000
Day 10: 250,000 (current day)
To determine if there is a volume spurt on Day 10, the script compares the current day's volume (250,000) with the highest volume of the previous nine sessions. In this case, the highest volume among the previous nine sessions is 200,000 (on Day 5). Since the current day's volume (250,000) exceeds the highest volume of the previous nine sessions (200,000), it is considered a volume spurt.
Identifying Gap-Up Days:
Gap-up days occur when the market opens significantly higher than the previous day's close. To identify these days, the script compares the current day's low price with the previous day's high price. If the low price is greater than the previous day's high, it is marked as a gap-up day.
Visualizing the Findings:
To provide a clear visual representation of the identified patterns, the script uses different shapes and colors. First, it plots small red dots above the candles whenever a volume spurt is detected. These dots help traders quickly identify periods of increased volume activity.
For price up moves with volume spikes, the script utilizes blue triangular shapes below the candles. This allows traders to pinpoint instances where both price and volume are showing positive signs, indicating potential bullish movements.
Additionally, the script incorporates green candles to represent gap-up days. These candles help traders recognize days when the market opens with a significant upward gap, suggesting a potential shift in market sentiment.
Conclusion:
The TradingView script discussed in this article provides traders with a visual representation of volume spikes , price up moves with volume spikes , and gap-up days . By incorporating these visual cues into their analysis, traders can gain valuable insights into market trends and potential trading opportunities.
Remember, this script should be used for educational and informational purposes only and does not serve as financial advice or recommendations. Traders are encouraged to customize and modify the script according to their specific trading strategies and risk tolerance.
Share this script with other traders on TradingView to enhance their chart analysis and trading decisions.
PS: This TradingView script is designed to work specifically on the daily timeframe (daily candles). It calculates and identifies volume spurts based on the volume data of the daily timeframe. Since it is designed for the daily timeframe, it may not produce accurate results or work as intended on other timeframes.
RS Momentum singleThe RS Momentum single Symbol indicator is a custom indicator that compares the performance of a specific symbol to a base symbol and calculates the relative strength (RS) and relative momentum (RM) between them. The indicator is designed to help traders identify the current market phase of the symbol and make informed trading decisions based on the relative performance.
Description:
The indicator calculates the RS and RM values using the following steps:
1. It retrieves the closing prices of the symbol and the base symbol.
2. It calculates the Symbol-to-Base Ratio (SBR) by dividing the closing price of the symbol by the closing price of the base symbol.
3. It calculates two Simple Moving Averages (SMAs) of the SBR with different lengths (RS1 and RS2) and computes the RS value as a percentage difference between these SMAs.
4. It calculates two SMAs of the RS value with different lengths (RM1 and RM2) and computes the RM value as a percentage difference between these SMAs.
5. The indicator plots the RS and RM values on the chart and assigns a market phase label based on their values.
Usage:
The indicator can be used to identify the current market phase of the symbol, which can be one of the following:
1. Leading: The symbol is outperforming the base symbol, and the momentum is positive. This phase indicates a strong bullish trend, and traders might consider entering long positions.
2. Weakening: The symbol is outperforming the base symbol, but the momentum is negative. This phase suggests that the bullish trend is losing strength, and traders might consider taking profits or tightening their stop losses.
3. Lagging: The symbol is underperforming the base symbol, and the momentum is negative. This phase indicates a strong bearish trend, and traders might consider entering short positions.
4. Improving: The symbol is underperforming the base symbol, but the momentum is positive. This phase suggests that the bearish trend is losing strength, and traders might consider closing short positions or looking for potential long entries.
Optimal Settings:
The optimal settings for the indicator depend on the specific market and trading style. However, the default settings (RS1 Length = 10, RS2 Length = 30, RM1 Length = 1, RM2 Length = 9) can be a good starting point. Traders can experiment with different settings find the ones that work best for their trading strategy and market conditions.
It's important to note that this indicator should be used in conjunction with other technical analysis tools and market context to make well-informed trading decisions. No single indicator can guarantee success in trading, and it's crucial to use a combination of tools and techniques to manage risk and maximize potential returns.
MTF Smoothable RSI Nexus [DarkWaveAlgo]🧾 Description:
A nexus is a connection, link, or neuronal junction where signals and information are transmitted between different elements.
The MTF Smoothable RSI Nexus indicator serves as a nexus between smoothable, MTF RSIs by facilitating the visualization and interaction of up to six multi-timeframe RSIs, each with its own customizable timeframe, period, coloring customization, and price source. By combining these various RSIs, it helps you create a comprehensive view of MTF momentum trends and dynamics.
It acts as a control center that brings together multiple MTF RSIs and allows you to visualize the interactions between them with exceptional ease-of-use and customizability, helping to provide you with valuable insights into potential trend reversals, momentum shifts, and trading opportunities.
💡 Originality and Usefulness:
While there are other multi-timeframe RSI indicators available, MTF Smoothable RSI Nexus' global smoothing settings offer a flexible take on the development of price momentum across various timeframes. Its semi-transparent overbought and oversold fill zones create a compounding opaqueness when RSIs from multiple timeframes coalesce - making visual assessment of momentum extremes incredibly easy. We also believe it stands above the rest with its sheer quantity and quality of settings, features, and usability.
✔️ Re-Published to Avoid Misleading Values
This script has been re-published to ensure that it does not use `request.security()` calls using lookahead_on to access future data when referencing RSIs from other timeframes. This decreases the likelihood that the indicator will provide deceiving values. This change has been made in accordance with the PineScript documentation: "Using barmerge.lookahead_on at timeframes higher than the chart's without offsetting the `expression` argument like in `close [ ]` will introduce future leak in scripts, as the function will then return the `close` price before it is actually known in the current context" and the Publishing Rule: "Do not use `request.security()` calls using lookahead to access future data". Historical and real-time values may differ when referencing timeframes other than the chart's.
💠 Features:
6 toggleable MTF Smoothable RSIs with customizable timeframes, periods, and price sources
Compounding overbought/oversold filled areas for easy MTF momentum analysis
Aesthetic and flexible coloring and color theme styling options
End-of chart labels and options for ease-of-use and legibility
⚙️ Settings:
Use a Color Theme: When this setting is enabled, all manual 'Bullish and Bearish Colors' are overridden. All plots will use the colors from your selected Color Theme - excepting those plots set to use the 'Single Color' coloring method.
Color Theme: When 'Use a Color Theme' is enabled, this setting allows you to select the color theme you wish to use.
Hide RSIs on Timeframes Lower Than the Chart: When this setting is enabled, any MTF RSI with a timeframe smaller than that of the chart the indicator is applied to will be hidden from view.
Overbought Level: Set the level value for the overbought line.
Oversold Level: Set the level value for the oversold line.
Overbought Color: When 'Use a Color Theme' is disabled, this will set the color for the Overbought Level line.
Oversold Color: When 'Use a Color Theme' is disabled, this will set the color for the Oversold Level line.
Fill Overbought/Oversold Areas: When enabled, the area between any MTF RSI and the Overbought/Oversold level will be filled with semi-transparent coloring if that RSI is above/below the respective level.
Smooth RSIs: When enabled, all MTF RSIs will be processed through an additional smoothing average calculation.
Smoothing Type: Set the calculation type for the smoothing process. Options include: Exponential, Simple, Weighted, Volume-Weighted, and Hull.
Enable: Show/hide a specific MTF RSI.
Timeframe: Set the timeframe for a specific MTF RSI.
Period: Set the lookback period for a specific MTF RSI.
Source Price: Set the source value used for a specific MTF RSI's calculation.
Coloring Method: Set the coloring method for this specific RSI. The coloring method defines how the RSI should be dynamically colored. Options include: 'Single Color' and 'Increasing/Decreasing'.
Bullish Color: When 'Use a Color Theme' is disabled, this will set the 'bullish color' for this specific MTF RSI.
Bearish Color: When 'Use a Color Theme' is disabled, this will set the 'bearish color' for this specific MTF RSI.
Single Color: When the 'Coloring Method' is set to Single Color for this specific RSI, this color option will set the RSI's color.
Enable Label: When enabled, a label will show at the end of the chart displaying the timeframe, period, smoothing type (if any), and current price value of this specific MTF RSI.
Size: Sets the font size of this specific MTF RSI's label.
Label Offset (in Bars): Sets the distance from the latest bar, in bars, at which this specific MTF RSI's label is displayed.
Show Label Line: When enabled, this specific MTF RSI's label will be accommodated by a dashed line connecting it to its plot.
📈 Chart:
The chart shown in this original publication displays the 15 minute chart on ETHUSDT. Displayed on the chart are 4 MTF RSIs: the 15m 14 WMA-Smoothed RSI, 1h 14 WMA-Smoothed RSI, 4h 14 WMA-Smoothed RSI, and the 1D 14 WMA-Smoothed RSI - offering an exemplary view of how you can easily use these MTF RSIs to your advantage in analyzing momentum relationship across multiple timeframes.
RAM StrategyThe name RAM originated because of three popular technical indicators Relative Strength Index (RSI), Average True Range (ATR), and Moving average convergence/divergence were used all together to create three conditions individually first and once all three conditions meet at once then we considered a potential opportunity either for buy or sell and produce signals. Before we dive into how the strategy work let's clarify all the 3 indicators which has been used.
RSI (Relative Strength Index):
The RSI is a popular indicator used to assess the overbought and oversold conditions of a financial instrument. It measures the speed and change of price movements.
Overbought Level: The RSI Overbought Level is set to 65, indicating that when the RSI goes above this level, it suggests that the instrument may be overbought or overvalued.
Oversold Level: The RSI Oversold Level is set to 35, indicating that when the RSI goes below this level, it suggests that the instrument may be oversold or undervalued.
ATR (Average True Range):
The ATR is a volatility indicator that measures the average range between the high and low prices of a financial instrument. It provides insight into market volatility. There is an ATR calculation and ATR Simple Moving Average calculation done in the script which provides insights into market volatility. By comparing the current ATR value to its SMA, this indicator takes into consideration the volatility conditions while generating trading signals, aiming to capture potential price movements during periods of increased volatility.
MACD (Moving Average Convergence Divergence):
The MACD is a trend-following momentum indicator that helps identify potential trend reversals. It consists of two lines: the MACD Line and the Signal Line.
MACD Line: The MACD Line represents the difference between the short-term and long-term moving averages. Crossovers of the MACD Line above the Signal Line indicate potential buying opportunities.
Signal Line: The Signal Line is a moving average of the MACD Line. Crossovers of the MACD Line below the Signal Line indicate potential selling opportunities and crossovers of the MACD line above the signal line indicate potential buying opportunities.
Trading Strategy:
Buy Signal: A buy signal is generated when the RSI is below the oversold level, the ATR is higher than its Simple Moving Average (indicating higher volatility), and there is a bullish crossover of the MACD Line above the Signal Line.
Sell Signal: A sell signal is generated when the RSI is above the overbought level, the ATR is higher than its Simple Moving Average (indicating higher volatility), and there is a bearish crossover of the MACD Line below the Signal Line.
The plot shapes function is used to visually represent the buy and sell signals on the price chart. Green "BUY" labels are displayed below the price bars for buy signals, while red "SELL" labels are displayed above the price bars for sell signals.
This strategy aims to identify potential buying and selling opportunities based on the combination of RSI, ATR, and MACD indicators. However, please note that the effectiveness and profitability of the strategy may vary depending on market conditions and individual trading preferences.
*Disclaimer*
Trading involves risk. Also, clarify that past performance is not indicative of future results and that individuals should only trade with the capital they can afford to lose.
The HoneyChai RSI by CoffeeShopCryptoHere is a fun new way to view the RSI. A new TradingView Indicator for you RSI enthusiasts. This is the Honey Chai RSI Indicator.
This indicator combines the RSI oscillator with additional features to enhance its functionality and visual study.
The purpose of this indicator is to provide a more comprehensive view of the RSI and aid in identifying trends, potential entry / exit points, and ranging conditions.
How it's Built.
The RSI:
The RSI is represented by its common line which you can turn on and off, as usual.
Japanese candlesticks:
In this indicator, are also Japanese candlesticks giving you their representation of the RSI. This provides a clearer visualization of the RSI movements across its Open, High, Low, and Close, unlike the OHLC of the Heiken Ashi candles in the Heiken Ashi Algo.
In addition to the RSI line and Japanese candles, there are two moving averages applied to the RSI value. For the purpose of keeping with my CoffeeShop theme, the High average line is the Honey Line and the Low average line is the Chai Line. The user can choose between Exponential Moving Average or Simple Moving average. These moving averages are calculated based on the high vs low values of the past RSI readings, with the high average acting as the leading line.
When the Honey line is above the Chai Line, it indicates an uptrend, whereas when the Honey Line is below the Chai Line, it suggests a downtrend.
If the price is moving up but the Honey line is still below the Chai line, you're technically still in a downtrend and you should trade this like a pullback.
Identifying Trends.
To identify short entries, you need to wait for the Japanese candles to open and close below the Honey line while the Honey line is below the Chai Line. Conversely, you wait for the Japanese candles to open and close above the Honey line while the Honey line is above the Chai Line. This confirmation helps in identifying potential reversal points.
Range Bound Market.
The indicator also incorporates a visual representation of a ranging area. The 60 and 40 levels of the RSI are visually differentiated to indicate this range. When the Japanese candles are opening and closing within this range and the RSI remains contained within these levels, it suggests that the price is likely in a ranging phase, and traders should wait for a breakout from this range before taking action.
In summary, this custom indicator provides a comprehensive view of the RSI oscillator by incorporating Japanese candlestick visuals, moving averages, and a visual representation of the ranging area. By analyzing these elements, traders can gain insights into trends, potential entry points, and ranging conditions in the market.
---------HOW TO TRADE-----------
LONGS AND SHORTS
An example on how to use this in a long trade is to wait for your moving averages to be high (yellow) over low (orange). For the purpose of the description in this indicator you're looking for the honey to be over the chai.
Even if the RSI and Japanese candles in the oscillator are falling, however the honey is above the Chai, you are still in an uptrend.
The positioning of the moving averages will always determine the direction of the overall price trend so in this position you're looking for long entries.
take a long position as an entry when the open and the close of the Japanese candle in the oscillator is above your honey line.
when you notice a bearish candle closing below the honey line in an uptrend position you can exit your trade.
Confluence for short trades would be just the opposite and using the moving averages in an upside down pattern. In other words the honey needs to be below the chai and your Japanese candle needs to be closing bearish however they open and the close of that candle needs to be below both of your moving averages. exit when you get a bullish candle closing in between the averages.
TRADING RANGES
Wait for your moving average to enter into the range bound 60/40 area as well as your Japanese candles to Wick above and below this area but not close above and below the area.
At this point you can mark off the high and the low of the range as it pertains to your price chart and start using your range trading strategy.
RSI MTF DashboardThis is an RSI dashboard, which allows you to see the current RSI value for five timeframes across up to 8 tickers of your choice. This is a useful tool to gauge momentum across multiple timeframes, where you would look to enter a buy with high RSI values across the timeframes (and vice versa for sell positions).
Conversely, some traders use RSI to identify potential areas for reversals, so you would look to buy with low RSI values (and vice versa for sell positions).
In the settings, please select which 5 timeframes you require. Then select which tickers you wish to see, and you will find a dashboard on your chart to show the RSI values. The dashboard can be highlighted when the RSI value shows bearish momentum (a value under 50, of your choice) and bullish momentum (a value over 50, again of your choice). These colours and values are fully customisable.
In the settings you can also select the location of the dashboard, as well as some colour and transparency settings to enable the best possible view on screen.
KDJ-RSI Buy/Sell Signal ver. 1It is an indicator combining the RSI indicator and KDJ indicator.
Buy signal will triggers when:
RSI signal positioning below 25
J value crosses below 0
Sell signal will triggers when:
RSI signal positioning above 85
J value crosses above 100
***********
Please take note that this indicator may be not accurate for every chart in the crypto market, but it is most appropriate to use it in BTC/USDT charts, mainly for 1h, 4h, and 1d candles. Not recommended to use it for 1m or 15m leverage trades, this indicator might be altered by FOMO sentiment.
RSI Exponential Smoothing (Expo)█ Background information
The Relative Strength Index (RSI) and the Exponential Moving Average (EMA) are two popular indicators. Traders use these indicators to understand market trends and predict future price changes. However, traders often wonder which indicator is better: RSI or EMA.
What if these indicators give similar results? To find out, we wanted to study the relationship between RSI and EMA. We focused on a hypothesis: when the RSI goes above 50, it might be similar to the price crossing above a certain length of EMA. Similarly, when the RSI goes below 50, it might be similar to the price crossing below a certain length of EMA.
Our goal was simple: to figure out if there is any connection between RSI and EMA.
Conclusion: Yes, it seems that there is a correlation between RSI and EMA, and this indicator clearly displays that relationship. Read more about the study here:
█ Overview of the indicator
The RSI Exponential Smoothing indicator displays RSI levels with clear overbought and oversold zones, shown as easy-to-understand moving averages, and the RSI 50 line as an EMA. Another excellent feature is the added FIB levels. To activate, open the settings and click on "FIB Bands." These levels act as short-term support and resistance levels which can be used for scalping.
█ Benefits of using this indicator instead of regular RSI
The findings about the Relative Strength Index (RSI) and the Exponential Moving Average (EMA) highlight that both indicators are equally accurate (when it comes to crossings), meaning traders can choose either one without compromising accuracy. This empowers traders to pick the indicator that suits their personal preferences and trading style.
█ How it works
Crossings over/under the value of 50
The EMA line in the indicator acts as the corresponding 50 line in the RSI. When the RSI crosses the value 50 equals when Close crosses the EMA line.
Bouncess from the value 50
In this example, we can see that the EMA line on the chart acts as support/resistance equals when RSI rejects the 50 level.
Overbought and Oversold
The indicator comes with overbought and oversold bands equal when RSI becomes overbought or oversold.
█ How to use
This visual representation helps traders to apply RSI strategies directly on the price chart, potentially making RSI trading easier for traders.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
FibonRSI / ErkOziHello,
This software is a technical analysis script written in the TradingView Pine language. The script creates a trading indicator based on Fibonacci retracement levels and the RSI indicator, providing information about price movements and asset volatility by using Bollinger Bands.
There are many different scripts in the market that draw RSI and Fibonacci retracement levels. However, this script was originally designed by me and shared publicly on TradingView.
***The indicator uses RSI (Relative Strength Index) and Bollinger Bands (BB) as the basis for the FibonRSI strategy. RSI measures the strength of a price movement, and BB measures the volatility of an asset. The FibonRSI strategy is based on the idea that the Fibonacci ratios and RSI can be used to predict a asset's price retracement levels.
***The script allows for various parameters to be adjusted. Users can specify the price source type and adjust the periods for RSI and Bollinger Bands. The standard deviation number for Bollinger Bands can also be customized.
***The script calculates the current RSI indicator position and the basic, upper, and lower levels of Bollinger Bands. It then calculates and draws the Fibonacci retracement levels. The color of the RSI line is determined by the upper and lower distribution levels of Bollinger Bands. Additionally, the color of the Fibonacci retracement levels can also be customized by the user.
***This script can be used to determine potential buy and sell signals using Fibonacci retracement levels and RSI. For example, when the RSI is oversold and the price is close to a Fibonacci retracement level, it can be interpreted as a buying opportunity. Similarly, when the RSI is overbought and the price is close to a Fibonacci retracement level, it can be interpreted as a selling opportunity.
***The script takes input parameters such as the price source used for calculation, the period for the RSI indicator, the period for the Moving Average in Bollinger Bands, and the number of standard deviations used in Bollinger Bands.
***The script's conditions include elements such as calculating the current position of the RSI indicator, calculating the upper and lower Bollinger Bands, calculating the dispersion factor, and calculating Fibonacci levels.
***The parameters in the code can be adjusted for calculation, including the price type used, the RSI period, the Moving Average period for BB, and the standard deviation count for BB. After this, the current position of the RSI, Moving Average, and standard deviation for BB are calculated. After calculating the upper and lower BB, the levels above and below the average are calculated using a specific dispersion constant.
CONDITIONS FOR THE SCRIPT
current_rsi = ta.rsi(src, for_rsi) // Current position of the RSI indicator
basis = ta.ema(current_rsi, for_ma)
dev = for_mult * ta.stdev(current_rsi, for_ma)
upper = basis + dev
lower = basis - dev
dispersion = 1
disp_up = basis + (upper - lower) * dispersion
disp_down = basis - (upper - lower) * dispersion
// Fibonacci Levels
f100 = basis + (upper - lower) * 1.0
f78 = basis + (upper - lower) * 0.78
f65 = basis + (upper - lower) * 0.65
f50 = basis
f35 = basis - (upper - lower) * 0.65
f23 = basis - (upper - lower) * 0.78
f0 = basis - (upper - lower) * 1.0
***When calculating Fibonacci levels, the distance between the average of BB and the upper and lower BB is used. These levels are 0%, 23.6%, 35%, 50%, 65%, 78.6%, and 100%. Finally, the RSI line that changes color according to a specific RSI position, Fibonacci levels, and BB are visualized. Additionally, the levels of 70, 30, and 50 are also shown.
The script then sets the color of the RSI position according to the EMA and draws Bollinger Bands, RSI, Fibonacci levels, and the 70, 30, and 50 levels.
In conclusion, this script enables traders to analyze market trends and make informed decisions. It can also be customized to suit individual trading strategies.
This script analyzes the RSI indicator using Bollinger Bands and Fibonacci levels. The default settings are 14 periods for RSI, 233 periods and 2 standard deviations for BB. The MA period inside BB is selected as the BB period and is used when calculating Fibonacci levels.
***The reason for selecting these settings is to provide enough time for BB period to confirm a possible trend. Additionally, the MA period inside BB is matched with the BB period and used when calculating Fibonacci levels.
***Fibonacci levels are calculated from the distance between the upper and lower bands of BB and show how RSI movement is related to these levels. Better results can be achieved when RSI periods are set to Fibonacci numbers such as 21, 55, and 89. Therefore, the use of Fibonacci numbers is recommended when adjusting RSI periods. Fibonacci numbers are among the technical analysis tools that can capture the reflection of naturally occurring movements in the market. Therefore, the use of Fibonacci numbers often helps to better track fluctuations in the market.
Finally, the indicator also displays the 70 and 30 levels and the middle level (50) with Fibonacci levels drawn in circles. Changing these settings can help optimize the Fibonacci levels and further improve the indicator.
Thank you in advance for your suggestions and opinions......
relative performanceThis indicator is built to mesure the performance of a stock vs the index of choice. it is best use for the intraday session because it doesn't take gap into account when doing the calculation. This is how i made my math (using AAPL compared to SPY for simplicity)
(change AAPL / ATR AAPL) - (change SPY / ATR SPY) * beta factor * volume factor
change is calculated open to close for each candle instead of close to close. this is why gap does not affect the calculation
blue columns is an instant snap shot of the RP
red and green columns is the moving average of the blue columns
limit is the max value for the blue line when ploting them on the chart but doesn't affect the calculation
option:
indice: default with SPY but could use any stock
moving average choice: let you choose between EMA or SMA green and red columns
rolling average length : number of bar for the moving average
I made an auto adjust for the 5 min chart and the 2 min chart so you can swithc between both chart and have the same average (default value set to 6x 5min and 15x 2 min, giving you the average of the last 30min)
volume weighing let you choose if you want a volume factor or not. volume factor is only going to multiplie the result of the price move. it cannot move it from positive to negative.
this is the calculation
(volume AAPL / volume SMA AAPL) / (volume SPY / volume sma SPY)
meaning that a higher volume on the thicker compared to it's sma while having a lower volume on SPY will give you a big relative performance.
you can choose the number of bar in the average for the volume.
BETA factor work the same way that the volume factor does. you got to manualy enter your beta. default is set to 1.5
table
top line : blue square is you RP value (same has the blue columns bar) and your reference thicker
middle line : pourcentage move from the open (9:30 open) for your stock on the left and the reference on the right
bottom line : beta on the left and volume factor on the right
feel free to ask question or give modification idea!
Trading Zones based on RS / Volume / PullbackThis is an Indicator which identifies different Trading Zones on the chart.
This should be Primarily used for Long Trades.
Trading Zones: and the Reasoning behind them
Long Zone -> One can do a Potential Entry (Buy) when this Zone is identified, but one could also wait for 'Entry Zone' (explained next) for a better Risk/Reward Trade.
Long Zones are identified with the help of Relative Strength and by an Intermediate Top in price.
Entry Zone -> This can be a better Risk/Reward zone to enter positions within the Long Zone.
Entry Zone is identified by a Pullback in Price & Volume contraction after the Long Zone is activated
Warning Zone -> One needs to be careful in this zone, no need to panic, Script will now try to find an Exit when Price Retraces towards Highs.
Warning Zone identifies weakness in the Price using Relative Strength of the current Stock (w.r.t. the Reference Symbol configured) and the severity of Pullback in Price.
Exit Zone -> are found only after transitioning to Warning Zone, this is a Zone which helps in minimising losses after a trade has gone into losses. Exit Zone is identified by making sure a local peak forms in Warning Zone. However, there are instances when Exit Zone detection can get prolonged when a local price peak is not formed soon enough. So one needs to be careful and use other strategies for exit.
------------------------------------------------------------------------------------
What is different in this Script:
The Script uses Relative Strength in combination with Pullback in Price from Highs in a Novel way.
Over-trading is avoided by ignoring Sideways price movements, using Relative Strength.
Only Trending Upward movement is detected and traded.
How to use this Indicator:
Use these 'Trading Zones' only as a reference so it can minimise your time in screening stocks.
Preferred Settings for using the Indicator:
Stick to 1-Day candles
Keep Relative Symbol as "Nifty" for Indian Stocks.
For US stocks, we can use "SPX" as the Relative Symbol.
//----------------
FEW EXAMPLES:
//----------------
ASIANPAINT
TATAMOTORS
TITAN
ITC
DIVISLAB
MARUTI
---------------------------------------------
Feedback is welcome.
Market Relative Candle Ratio ComparatorIntroducing the Market Relative Candle Ratio Comparator, a visually captivating script that eases the way you compare two financial assets, such as cryptocurrencies and market indices. Leveraging a distinctive calculation method based on percentage changes and their averages, this tool presents a crystal-clear view of how your chosen assets perform in relation to each other, both for individual candles and over a range of previous candles.
Tailoring the script to your preferences is a walk in the park, as it allows you to easily adjust input symbols, moving average lengths, and other parameters to match your analytical approach. The visually arresting column chart it creates employs vivid red and green colors to underscore the differences between the two assets on each candle. Simultaneously, the lower-opacity columns depict the accumulated differences over a specified lookback period. This vibrant blend of colors and opacities results in a dynamic visual experience, enabling you to better grasp market trends relative to each other.
The reverse bool input is a handy feature that lets you invert the effect of the input symbol (DXY by default) in the comparison. When you set the reverse input to true, the script multiplies the calculated DXY percentage change by -1, effectively reversing the comparison. This is particularly useful when examining assets with an inverse relationship or when you'd like to analyze the input symbol's impact in the opposite direction.
For instance, if the input symbol represents a market index that generally moves in the opposite direction of the selected cryptocurrency, enabling the reverse input will help you better visualize and understand the relationship between the two assets by inverting the input symbol's effect on the comparison.
In the accompanying chart, you can observe the comparison of Bitcoin's movement relative to the Dollar, Gold, Bonds, and the S&P 500. The indicator reveals that in the last day, Bitcoin outperformed Bonds, Gold, and the Dollar but not the S&P 500!
RS RatingHello everyone.
The RS Rating (or Relative Strenght Rating) is a metric that tracks a stock's price performance relative to the rest of the market. Specifically, it looks at a stock's relative strength over the last 52 weeks.
It allows you to identify at a glance stocks that are outperforming the market and may be poised for further gains.
Designed for break-out traders, trend follower, value investors, the RS Rating can help you identify promising opportunities and make informed investment decisions.
The Rating stands as follow:
- From 1 (worst) to 99 (best)
- 99 rating means the stock is outperforming 99% of all stocks in terms of relative share price performance over the last 52 weeks.
The RS Rating is accompanied by the RS line which is a representation of the progress of the asset against the comparative symbol. (Here SP500)
Of course this script is inspired by the IBD rating system.
The results may be equivalent but it is not guaranteed.
This indicator proposes a scoring system in the style of the one proposed by IBD.
Indeed for an optimal result, it would be necessary to compare the relative performance of all actions, which is not yet possible on PineScript.
Here is the formula for calculating the score:
RS Score = 40% * P3 + 20% * P6 + 20% * P9 + 20% * P12
With
P3 = Performance over the last 3 months
P6 = Performance over the last 6 months
P9 = Performance over the last 9 months
P12 = Performance over the last 12 months
There is no equivalent solution for the moment on TradingView.
The rating score will only appear on the daily timeframe.
For now it's my pleasure to share!
Volume DockThis oscillator has two different modes:
The first one called RSIs is a comparison between the Relative strength index of the Accumulation/Distribution (and the On Balance Volume) and the normal price, to analyze the differences in momentum between the price with volume and without.
The second one, called Dock, is similar except for the fact that the lines are smoothed using the hull moving average formula, this mode is great to signal entries and for reversal analyzing.
Quad RSRelative Strength (RS) is an Indicator which measures a Stock's performance as compared to a Benchmark Index or another Stock.
For example: RS will tell you whether “A” is increasing more or less than “B” in any market condition. It is one of the tools which is best suited for Momentum Investing.
How RS can be used as a Momentum Indicator:
RS is used in identifying both the strongest and the weakest stock, or any asset class, within the market. Usually, the stocks which display strong or weak RS over a given time period tend to continue to move in the same direction.
How to calculate Relative Strength:
Divide change of "A" over some time period by the change of a particular index/stock "B" over the same time period.
This indicator oscillates around zero. If the value is greater than zero, "A" has been relatively strong compared to "B", during the selected period; if the value is less than zero, "A" has been relatively weak.
Configuration & Default settings:
The Relative symbol can be Input, default is Nifty50.
Time frame can be set, I recommend setting to Day. Default time frame is set to same as chart.
Four different periods can be set. Default values are 500, 250, 125 & 63. If time frame is set as 'Day', these numbers correspond to 2 years, 1 year, 1/2 year & 1 quarter.
Example chart: NiftyMidCap100 with Quad RS indicator with Nifty50 used as Relative Symbol, Four periods: 500, 250, 125 & 63
Relative Performance of stock against nifty & bank niftyThe code calculates the relative performance of Nifty and Bank Nifty and plots it on a chart. It also calculates the 14-day RSI and a moving average of the relative performance.
First, the script retrieves the daily close prices for Nifty and Bank Nifty from the NSE using the request.security() function. It then calculates the daily returns for each index and the average returns over a specified lookback period. The relative performance is then calculated as the difference between the current close price and its moving average, expressed as a percentage of the moving average, minus the average daily returns of Nifty and Bank Nifty.
The script then calculates the 14-day RSI using the ta.rsi() function and plots the relative performance on the chart in green color. A signal line at zero is also plotted in black color. Additionally, the moving average of the relative performance is plotted on the chart using the ta.sma() function and an input variable called "interval" is used to specify the number of bars to use for the moving average.
Finally, the script sets the color of the chart bars based on the relative performance and RSI values. If the relative performance is above the moving average and the RSI is above 50, the color of the bars is set to yellow. If the relative performance is below the moving average and the RSI is below 50, the color of the bars is set to a shade of purple.
Rainbow Collection - BlueSlopes are an increasingly key concept in Technical Analysis. The most basic type is to calculate them on the prices, but also on technical indicators such as moving averages and the RSI.
In technical analysis, you generally use the RSI to detect imminent reversal moves within a range. In the case of the Blue indicator, we are calculating the slope of the market price and then calculating the RSI of that slope in order to detect instances of reversal.
The Blue indicator is therefore used as follows:
* A bullish signal is generated whenever the 21-period RSI of the 21-period market slope surpasses 30 after having been below it but remains below 35.
*A bearish signal is generated whenever the 21-period RSI of the 21-period market slope breaks 70 after having been above it but remains above 65.
The aim of the Blue indicator is to capture reversals as early as possible through a combination of slopes and entry techniques.
