Constance Brown RSI*Re-uploading without House Violations*
Welles Wilder created the RSI momentum oscillator in the 1970s. It is a momentum oscillator that ranges from 0 to 100. The traditional idea is to buy when the oscillator is below 30 and to sell when it is above 70. However, this strategy often only catches extreme moves and misses majority of the trend.
In comes Constance Brown RSI . She theorized that in an uptrend, the buy zone exists when RSI is between 40 and 50. The sell zone in an uptrend exists between 80 and 90. In a downtrend, the sell zone exists between 55 and 65. The buy zone in a downtrend exists between 20 and 30.
I have added a moving average feature to determine trend. When the short trend is above the long trend, it is considered an uptrend. It is in a downtrend otherwise. Using short length moving averages will often produce a lot of false signals. I recommend using the 50 and 100 as they will produce less noise.
There will be times when the oscillator breaks beyond the ranges described (for ex: seeing a reading below 40 in an uptrend). This tends to happen in periods of high volatility . Refer to the traditional RSI rules in such cases.
Wyszukaj w skryptach "泰国一寺庙被曝藏有40多具尸体"
ADX DI EMA Clouds
EMA clouds colored by DI and ADX indicator:
9 EMA and 21 EMA Cloud turns green in a bull trend and red when in a bull trend...if the trend is half bulll and half bear..the clouds turn white.
I also coded if the momentum in increasing (yellow) or if the momentum is decreasing (blue) or if the momentum is flat (white).
The Clouds are colored based off the Di (+/-)
9 EMA is colored based of ADX momentum strength
ADX:
ADX is used to quantify trend strength. ADX calculations are based on a moving average of price range expansion over a given period of time. The default setting is 14 bars, although other time periods can be used.1
ADX can be used on any trading vehicle such as stocks, mutual funds, exchange-traded funds and futures .
DI (+/-):
The directional movement index (DMI) is an indicator developed by J. Welles Wilder in 1978 that identifies in which direction the price of an asset is moving. The indicator does this by comparing prior highs and lows and drawing two lines: a positive directional movement line ( +DI ) and a negative directional movement line ( -DI ). An optional third line, called the average directional index ( ADX ), can also be used to gauge the strength of the uptrend or downtrend.
This indicator has the length changed from 14 to 9 so you can have more updated price calculation
I also add the 4 levels I use for day trading; the 10, 20, 30, 40-50 are the levels I like to see the Di to break over.
A lot of traders use different levels, but these I have and found most useful. You can set alerts when any Di crosses over the 40 for true trend breakout!
MA total distance on chartNOTE:
The name I used for this indicator was created by me and I’m not sure if it has been used or created by any other trader/creator in the past or not!
Motivation to create:
One of the most important uses of “moving averages” is indicating the trend! There are different ways you can distinguish trend by using moving averages and one of the most popular type of it is comparing closing price to a MA. In this case if close is higher than the MA, trend is bullish and if close is lower than MA, it’s bearish. This method is really useful and I see great results in my long-term back-tests, especially SMA-100 in 1H chart filter so many fake signals in many different indicator-based strategies (Personal experience). There are so many problems with using indicators that sometimes have difficult solutions but one of them is fake breakout!
Looking at the top picture, you’ll get a breakout has happened but trend did not change!
A super bearish trend is obviously visible in the chart and we know a small break out might be a fake one, but what if we have an indicator make conditions of a trend change a little harder?
Introduction:
I was careful about how I used moving averages and I got that I will take not only the last candle close price into consideration, so in these kind of false breakouts I will not fall into trap of them, On the contrary, I find a good opportunity to enter the market opposite of the MA break! (In this case short trade). I calculate the total distance of last 40 candles and divide them to 40, to get the average distance, to each a mathematical score for power of our trend comparing to the MA!
Number are just default you can change them.
In the picture below you can see how well it filtered the false breakout.
As it is obvious, Timeframe, MA length, MA source and MA type are editable.
Since I do not tested this indicator enough (for me enough means more than 5000 trades and 10 years) I can’t suggest any settings as the best one.
The distance length, which means number of candles that their distance to MA is considered in our calculations, the distance source and also smoothing of the MATD is editable too.
And without editing it will look like something like this!
Didi Index PlusAbout this indicator (translation to Portuguese on the second half of the description):
The indicator follows the way Didi Aguiar teaches his trading system. Didi Aguiar is an old school Brazilian trader with over 40 years experience, who created the Didi Index and the famous agulhadas - or how I like to say in English: threads in the needle, an explosive price movement.
This version of the Didi Index adds what matters about DMI/ADX, Stochastic and TRIX to the regular Didi Index indicator.
The lines indicate alert and confirmations:
BLUE line crossing UP white line - BUY alert
PINK line crossing DOWN white line - BUY confirmation
Simultaneous Buy Alert and Confirmation = BUY AGULHADA.
BLUE line crossing DOWN white line - SHORT alert
PINK line crossing UP white line - SHORT confirmation
Simultaneous Short Alert and Confirmation = SHORT AGULHADA.
The background color changes according to the way Didi Aguiar reads the DMI and ADX.
Blue = Up trend
Bright Blue = Accelerating up trend
Purple = Down trend
Bright Purple = Accelerating down trend
Change from bright to dark color = ADX's bounce.
No coloured background = no trend.
The triangles on the top and bottom of the chart are the exit indicators.
They appear every time the Fast Stochastic and TRIX are in agreement:
Triangle on TOP of the chart means to EXIT LONG position.
- TRIX is selling and Stochastic just gave the sell signal; OR
- Stochastic is selling and TRIX just gave the sell signal
Triangle on BOTTOM of the chart means to EXIT SHORT position.
- TRIX is buying and Stochastic just gave the buy signal; OR
- Stochastic is buying and TRIX just gave the buy signal
Use this indicator with Bollinger Bands or other volatility indicator.
Not recommended for color-blind people :)
-----------------------------------------
Esse indicador segue a maneira que Didi Aguiar ensina o seu "trading system". Didi Aguiar é um trader velha-guarda com mais de 40 anos de experiência, que criou o Didi Index e as famosas Agulhadas, um movimento the preço explosivo.
Essa versão do Didi Index inclui o que interessa sobre outros três indicadores que o Didi usa em seu sistema: DMI/ADX, TRIX, e Estocástico.
As linhas indicam alerta e confirmação para o trade:
Linha AZUL cruzando a linha branca de BAIXO PARA CIMA - Alerta de compra
Linha ROSA cruzando a linha branca de CIMA PARA BAIXO - Confirmação de compra
ALERTA e CONFIRMAÇÃO de compra simultaneos = AGULHADA DE COMPRA
Linha AZUL cruzando a linha branca de CIMA PARA BAIXO - Alerta de venda
Linha ROSA cruzando a linha branca de BAIXO PARA CIMA - Confirmação de venda
ALERTA e CONFIRMAÇÃO de cenda simultaneos = AGULHADA DE VENDA
A cor do fundo muda de acordo com a maneira que o Didi lê o DMI e ADX
Fundo AZUL = Tendencia de compra
Fundo ROXO = Tendencia de venda
Cor mais saturada (vibrante) = Tendencia acelerante
Passou de cor mais clara para mais escura = Kick do ADX
Sem coloração de fundo = Sem tendencia
Os triângulos brancos na parte de cima e de baixo do indicador sinalizam a saida do trade.
Aparecem todas a vezes que o Etocastico e o TRIX ficam de acordo.
Triangulo na parte de CIMA sinaliza a SAÍDA da COMPRA.
- TRIX está vendido e o Estocástico acabou de vender; OU
- Estocástico está vendido e o TRIX acabou de vender
Triangulo na parte de BAIXO sinaliza a SAÍDA da VENDA.
- TRIX está comprado e o Estocástico acabou de comprar; OU
- Estocástico está comprado e o TRIX acabou de comprar
Use esse indicador em conjunto com as Bandas de Bollinger ou outro indicador de volatilidade.
Não é indicado para pessoas que sofrem de daltonismo :)
Classic Long Term Trend Following SystemThis is a classic long term trend following system.
The breakout period is 50 days instead of 20 and the moving average crossover are 40 and 120.
The moving averages are also exponential instead of simple.
The stoploss is 4 ATRs away from the price.
Recommendations:
Donchian Channels settings > 50 days
Moving Averages > 40 and 120, 80 and 140
Important to note:
My first strategy, DC Breakout System | This is simplicity at its finest, is best used on the crypto market and this one for stocks, commodities, currencies, etc. Those markets tend to trend a lot longer than crypto do.
Average True Range NormalizedIntroduction
This simple script is the normalization of the common ATR indicator. The utility in normalization, in this case, is the contextualization of the absolute movements of the ATR compared to the previous candles. Not finding an indicator that reflected my needs, I created it and decided to make it available to the community.
The oscillator is fully based on the original ATR indicator, once normalized it varies its values between -50 and +50 and has a moving average based on it.
I added alarms:
- crossing of horizontal levels (default +40 -40)
- crossing of the moving average
Settings
ATR period : like a normal ATR indicator, the number of candles on which the ATR calculation is based
Smooth : like normal ATR indicator, type of moving average to smooth true range values
Normalization Period : Number of candles on which ATR normalization is based, it takes the maximum and the minimum values in the last N candles and creates the value -50 and +50, between these two values normalize the others.
MA Period : Period of MA based on ATR, this MA can be used like moving level to find the moment of low volatility
Type : Kind of MA, you can choose only between 3 types ( SMA, EMA, WMA )
Horizontal Lines Value : high and low level for high and low volatility
Alert on crossing Horizontal lines : enable alerts on crossing Horizontal Lines
Alert on crossing MA : enable alerts on crossing Moving Average
How to use
ATR isn't a directional indicator, but volatility is fuel for markets, low ATR values indicate quiet moments or consolidation movements, otherwise high ATR values indicate selling or buying pressure. A reversal in price with an increase in ATR would indicate strength behind that move.
The problem, for me, with normal ATR is that often the values have to be contextualized with older values, on the contrary being normalized you can:
- catch small fluctuations, and anticipate the decline;
- contextualize the values without having to look at the history in the previous candles
So:
- under MA or horizontal line the volatility is too low, it would be advisable to consider not opening positions;
- over MA line the volatility is raising and a reversal in price with an increase in ATR would indicate strength behind that move;
Remember that every statistical indicator is just a tool, it needs to be understood to be used at its best, otherwise, it is just a colored line in a colored graph.
Smoothed Waddah ATR~~~All Credit to LAZY BEAR for posting the original Script which is an old MT4 indicator.~~~~
No this system does not repaint... if it does let me know. Either the code is wrong or you are using a repainting chart such as renko candles.
*PURPOSE*
This Is an "Enhanced or Smoothed" version of the script that captures the heiken-ashi closing price as its main calculation variable. While using normal bar or line charts. Enhancements integrate trade filters to reduce false signals.
*WHAT TYPE OF TRADING STRATEGY IS THIS?*
This is a Long Only, Trend Trading System. Is intended to be applied to Charts/Timeframes that produce sustainable trends for which ever asset you are trading.
*NOTE OF ADVICE REGARDING SETTINGS*
Settings can be tweaked but I have found that best results come with the given settings. If a chart is too choppy to trade this indicator successfully, it is advised not to change the settings but either find a different timeframe or different asset to apply this strategy to.
TLDR
Indicator measures the change of the MacD (difference between MAC D of given EMA's) and compares it to the difference between the Upper and Lower Bollinger bands. Green bar over trigger line= entry. Red bar over trigger line = close.
*SETTINGS AND INPUTS*
-MacD of HeikenAshi chart (will always be of the Heikenashi chart even when applied to different chart type)
sensitivity = input(150, title='Sensitivity') =range should be (125-175)multiplier so that MacD can be compared to BB
fastLength = input(20, title='MacD FastEMA Length')
slowLength = input(40, title='MacD SlowEMA Length')
-Bollinger Band of currently used price chart type
channelLength = input(20, title='BB Channel Length')
mult = input(1.5, title='BB Stdev Multiplier')
-14 Period RSI Trade Filter (set to 0 to Disable)
RSI14filter = input(40, title='RSI Value trade filter') =only gives entry when RSI is higher than given value
*ABSTRACT & CONCEPT*
TLDR - Indicator measures the change of the MacD (difference between MAC D of given EMA's) and compares it to the difference between the Upper and Lower Bollinger bands. Green bar over trigger line= entry. Red bar over trigger line = close.
Indicator plots -
Bars are the change in the MAC D and the indicator line is the difference in the BB.
When Bars are higher than the indicator line then it is considered a trend "Explosion"
Green Bars are Trend Explosion to the upside, Red Bars are Trend explosion to the downside.
GENERAL DETAIL-
the core calculation is measuring the change in MacD of current candle compared to the MacD of two previous candles.
This value is multiplied by the sensitivy so it can be compared to the change in Bollinger Band Width.
if the MACD change is positive then you get a green/lime bar for that value. If the MacDchange is negative you get a red/orange bar for that value.
and are determined by whether the actual change is increasing in that direction or decreasing. (bars getting taller or bars getting shorter)
Entry signal for long is A positive change in MACD difference (Green bar) that is greater than the change of the bollinger band (orange signal line) AND if the RSI value is above your filter.
Close signal or Trend Stop Warning Signal is given when a Negative MacD Difference (red bar) is greater than the change of the bollinger band (orange Line)
*CONSIDERATIONS AND THOUGHTS*
I have over 150 iterations of this indicator and this is the most consistent and best version of settings and filters I was able to generate. I built this indicator specifically for 3 charts. SPY monthly, QQQ monthly, BTC 3 Day. However this indicator works well on any long term bullish chart. (tech stocks are great) .
Trend trading systems are intended to be homerun hitting, plunge protecting indicators that allow for long legs and expanding volatility. This indicator does this as the trigger line is Dynamic with the expansion and contraction of the bollinger band.
I do not take every signal specifically not the close signals. Instead they more like warnings in ultra bullish environments.
If i had to pair this indicator with any other filter than the RSI, it would be a long term moving average i.e. the 50 week or equivalent for your chart. signals above rising moving averages means that you are trading with an upward trending market.
Hope this helps. Happy trades.
-SnarkyPuppy
Reverse Cutlers Relative Strength Index On ChartIntroduction
The Reverse Cutlers Relative Strength Index (RCRSI) OC is an indicator which tells the user what price is required to give a particular Cutlers Relative Strength Index ( RSI ) value, or cross its Moving Average (MA) signal line.
Overview
Background & Credits:
The relative strength index ( RSI ) is a momentum indicator used in technical analysis that was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, “New Concepts in Technical Trading Systems.”.
Cutler created a variation of the RSI known as “Cutlers RSI” using a different formulation to avoid an inherent accuracy problem which arises when using Wilders method of smoothing.
Further developments in the use, and more nuanced interpretations of the RSI have been developed by Cardwell, and also by well-known chartered market technician, Constance Brown C.M.T., in her acclaimed book "Technical Analysis for the Trading Professional” 1999 where she described the idea of bull and bear market ranges for RSI , and while she did not actually reveal the formulas, she introduced the concept of “reverse engineering” the RSI to give price level outputs.
Renowned financial software developer, co-author of academic books on finance, and scientific fellow to the Department of Finance and Insurance at the Technological Educational Institute of Crete, Giorgos Siligardos PHD . brought a new perspective to Wilder’s RSI when he published his excellent and well-received articles "Reverse Engineering RSI " and "Reverse Engineering RSI II " in the June 2003, and August 2003 issues of Stocks & Commodities magazine, where he described his methods of reverse engineering Wilders RSI .
Several excellent Implementations of the Reverse Wilders Relative Strength Index have been published here on Tradingview and elsewhere.
My utmost respect, and all due credits to authors of related prior works.
Introduction
It is worth noting that while the general RSI formula, and the logic dictating the UpMove and DownMove data series has remained the same as the Wilders original formulation, it has been interpreted in a different way by using a different method of averaging the upward, and downward moves.
Cutler recognized the issue of data length dependency when using wilders smoothing method of calculating RSI which means that wilders standard RSI will have a potential initialization error which reduces with every new data point calculated meaning early results should be regarded as unreliable until enough calculation iterations have occurred for convergence.
Hence Cutler proposed using Simple Moving Averaging for gain and loss data which this Indicator is based on.
Having "Reverse engineered" prices for any oscillator makes the planning, and execution of strategies around that oscillator far simpler, more timely and effective.
Introducing the Reverse Cutlers RSI which consists of plotted lines on a scale of 0 to 100, and an optional infobox.
The RSI scale is divided into zones:
• Scale high (100)
• Bull critical zone (80 - 100)
• Bull control zone (62 - 80)
• Scale midline (50)
• Bear control zone (20 - 38)
• Bear critical zone (0 - 20)
• Scale low (0)
The RSI plots which graphically display output closing price levels where Cutlers RSI value will crossover:
• RSI (eq) (previous RSI value)
• RSI MA signal line
• RSI Test price
• Alert level high
• Alert level low
The info box displays output closing price levels where Cutlers RSI value will crossover:
• Its previous value. ( RSI )
• Bull critical zone.
• Bull control zone.
• Mid-Line.
• Bear control zone.
• Bear critical zone.
• RSI MA signal line
• Alert level High
• Alert level low
And also displays the resultant RSI for a user defined closing price:
• Test price RSI
The infobox outputs can be shown for the current bar close, or the next bar close.
The user can easily select which information they want in the infobox from the setttings
Importantly:
All info box price levels for the current bar are calculated immediately upon the current bar closing and a new bar opening, they will not change until the current bar closes.
All info box price levels for the next bar are projections which are continually recalculated as the current price changes, and therefore fluctuate as the current price changes.
Understanding the Relative Strength Index
At its simplest the RSI is a measure of how quickly traders are bidding the price of an asset up or down.
It does this by calculating the difference in magnitude of price gains and losses over a specific lookback period to evaluate market conditions.
The RSI is displayed as an oscillator (a line graph that can move between two extremes) and outputs a value limited between 0 and 100.
It is typically accompanied by a moving average signal line.
Traditional interpretations
Overbought and oversold:
An RSI value of 70 or above indicates that an asset is becoming overbought (overvalued condition), and may be may be ready for a trend reversal or corrective pullback in price.
An RSI value of 30 or below indicates that an asset is becoming oversold (undervalued condition), and may be may be primed for a trend reversal or corrective pullback in price.
Midline Crossovers:
When the RSI crosses above its midline ( RSI > 50%) a bullish bias signal is generated. (only take long trades)
When the RSI crosses below its midline ( RSI < 50%) a bearish bias signal is generated. (only take short trades)
Bullish and bearish moving average signal Line crossovers:
When the RSI line crosses above its signal line, a bullish buy signal is generated
When the RSI line crosses below its signal line, a bearish sell signal is generated.
Swing Failures and classic rejection patterns:
If the RSI makes a lower high, and then follows with a downside move below the previous low, a Top Swing Failure has occurred.
If the RSI makes a higher low, and then follows with an upside move above the previous high, a Bottom Swing Failure has occurred.
Examples of classic swing rejection patterns
Bullish swing rejection pattern:
The RSI moves into oversold zone (below 30%).
The RSI rejects back out of the oversold zone (above 30%)
The RSI forms another dip without crossing back into oversold zone.
The RSI then continues the bounce to break up above the previous high.
Bearish swing rejection pattern:
The RSI moves into overbought zone (above 70%).
The RSI rejects back out of the overbought zone (below 70%)
The RSI forms another peak without crossing back into overbought zone.
The RSI then continues to break down below the previous low.
Divergences:
A regular bullish RSI divergence is when the price makes lower lows in a downtrend and the RSI indicator makes higher lows.
A regular bearish RSI divergence is when the price makes higher highs in an uptrend and the RSI indicator makes lower highs.
A hidden bullish RSI divergence is when the price makes higher lows in an uptrend and the RSI indicator makes lower lows.
A hidden bearish RSI divergence is when the price makes lower highs in a downtrend and the RSI indicator makes higher highs.
Regular divergences can signal a reversal of the trending direction.
Hidden divergences can signal a continuation in the direction of the trend.
Chart Patterns:
RSI regularly forms classic chart patterns that may not show on the underlying price chart, such as ascending and descending triangles & wedges , double tops, bottoms and trend lines etc.
Support and Resistance:
It is very often easier to define support or resistance levels on the RSI itself rather than the price chart.
Modern interpretations in trending markets:
Modern interpretations of the RSI stress the context of the greater trend when using RSI signals such as crossovers, overbought/oversold conditions, divergences and patterns.
Constance Brown, CMT , was one of the first who promoted the idea that an oversold reading on the RSI in an uptrend is likely much higher than 30%, and that an overbought reading on the RSI during a downtrend is much lower than the 70% level.
In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range, with the 40-50 zone acting as support.
During a downtrend or bear market, the RSI tends to stay between the 10 to 60 range, with the 50-60 zone acting as resistance.
For ease of executing more modern and nuanced interpretations of RSI it is very useful to break the RSI scale into bull and bear control and critical zones.
These ranges will vary depending on the RSI settings and the strength of the specific market’s underlying trend.
Limitations of the RSI
Like most technical indicators, its signals are most reliable when they conform to the long-term trend.
True trend reversal signals are rare, and can be difficult to separate from false signals.
False signals or “fake-outs”, e.g. a bullish crossover, followed by a sudden decline in price, are common.
Since the indicator displays momentum, it can stay overbought or oversold for a long time when an asset has significant sustained momentum in either direction.
Data Length Dependency when using wilders smoothing method of calculating RSI means that wilders standard RSI will have a potential initialization error which reduces with every new data point calculated meaning early results should be regarded as unreliable until calculation iterations have occurred for convergence.
Reverse Cutlers Relative Strength IndexIntroduction
The Reverse Cutlers Relative Strength Index (RCRSI) is an indicator which tells the user what price is required to give a particular Cutlers Relative Strength Index (RSI) value, or cross its Moving Average (MA) signal line.
Overview
Background & Credits:
The relative strength index (RSI) is a momentum indicator used in technical analysis that was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, “New Concepts in Technical Trading Systems.”.
Cutler created a variation of the RSI known as “Cutlers RSI” using a different formulation to avoid an inherent accuracy problem which arises when using Wilders method of smoothing.
Further developments in the use, and more nuanced interpretations of the RSI have been developed by Cardwell, and also by well-known chartered market technician, Constance Brown C.M.T., in her acclaimed book "Technical Analysis for the Trading Professional” 1999 where she described the idea of bull and bear market ranges for RSI, and while she did not actually reveal the formulas, she introduced the concept of “reverse engineering” the RSI to give price level outputs.
Renowned financial software developer, co-author of academic books on finance, and scientific fellow to the Department of Finance and Insurance at the Technological Educational Institute of Crete, Giorgos Siligardos PHD. brought a new perspective to Wilder’s RSI when he published his excellent and well-received articles "Reverse Engineering RSI " and "Reverse Engineering RSI II " in the June 2003, and August 2003 issues of Stocks & Commodities magazine, where he described his methods of reverse engineering Wilders RSI.
Several excellent Implementations of the Reverse Wilders Relative Strength Index have been published here on Tradingview and elsewhere.
My utmost respect, and all due credits to authors of related prior works.
Introduction
It is worth noting that while the general RSI formula, and the logic dictating the UpMove and DownMove data series as described above has remained the same as the Wilders original formulation, it has been interpreted in a different way by using a different method of averaging the upward, and downward moves.
Cutler recognized the issue of data length dependency when using wilders smoothing method of calculating RSI which means that wilders standard RSI will have a potential initialization error which reduces with every new data point calculated meaning early results should be regarded as unreliable until enough calculation iterations have occurred for convergence.
Hence Cutler proposed using Simple Moving Averaging for gain and loss data which this Indicator is based on.
Having "Reverse engineered" prices for any oscillator makes the planning, and execution of strategies around that oscillator far simpler, more timely and effective.
Introducing the Reverse Cutlers RSI which consists of plotted lines on a scale of 0 to 100, and an optional infobox.
The RSI scale is divided into zones:
• Scale high (100)
• Bull critical zone (80 - 100)
• Bull control zone (62 - 80)
• Scale midline (50)
• Bear critical zone (20 - 38)
• Bear control zone (0 - 20)
• Scale low (0)
The RSI plots are:
• Cutlers RSI
• RSI MA signal line
• Test price RSI
• Alert level high
• Alert level low
The info box displays output closing price levels where Cutlers RSI value will crossover:
• Its previous value. (RSI )
• Bull critical zone.
• Bull control zone.
• Mid-Line.
• Bear control zone.
• Bear critical zone.
• RSI MA signal line
• Alert level High
• Alert level low
And also displays the resultant RSI for a user defined closing price:
• Test price RSI
The infobox outputs can be shown for the current bar close, or the next bar close.
The user can easily select which information they want in the infobox from the setttings
Importantly:
All info box price levels for the current bar are calculated immediately upon the current bar closing and a new bar opening, they will not change until the current bar closes.
All info box price levels for the next bar are projections which are continually recalculated as the current price changes, and therefore fluctuate as the current price changes.
Understanding the Relative Strength Index
At its simplest the RSI is a measure of how quickly traders are bidding the price of an asset up or down.
It does this by calculating the difference in magnitude of price gains and losses over a specific lookback period to evaluate market conditions.
The RSI is displayed as an oscillator (a line graph that can move between two extremes) and outputs a value limited between 0 and 100.
It is typically accompanied by a moving average signal line.
Traditional interpretations
Overbought and oversold:
An RSI value of 70 or above indicates that an asset is becoming overbought (overvalued condition), and may be may be ready for a trend reversal or corrective pullback in price.
An RSI value of 30 or below indicates that an asset is becoming oversold (undervalued condition), and may be may be primed for a trend reversal or corrective pullback in price.
Midline Crossovers:
When the RSI crosses above its midline (RSI > 50%) a bullish bias signal is generated. (only take long trades)
When the RSI crosses below its midline (RSI < 50%) a bearish bias signal is generated. (only take short trades)
Bullish and bearish moving average signal Line crossovers:
When the RSI line crosses above its signal line, a bullish buy signal is generated
When the RSI line crosses below its signal line, a bearish sell signal is generated.
Swing Failures and classic rejection patterns:
If the RSI makes a lower high, and then follows with a downside move below the previous low, a Top Swing Failure has occurred.
If the RSI makes a higher low, and then follows with an upside move above the previous high, a Bottom Swing Failure has occurred.
Examples of classic swing rejection patterns
Bullish swing rejection pattern:
The RSI moves into oversold zone (below 30%).
The RSI rejects back out of the oversold zone (above 30%)
The RSI forms another dip without crossing back into oversold zone.
The RSI then continues the bounce to break up above the previous high.
Bearish swing rejection pattern:
The RSI moves into overbought zone (above 70%).
The RSI rejects back out of the overbought zone (below 70%)
The RSI forms another peak without crossing back into overbought zone.
The RSI then continues to break down below the previous low.
Divergences:
A regular bullish RSI divergence is when the price makes lower lows in a downtrend and the RSI indicator makes higher lows.
A regular bearish RSI divergence is when the price makes higher highs in an uptrend and the RSI indicator makes lower highs.
A hidden bullish RSI divergence is when the price makes higher lows in an uptrend and the RSI indicator makes lower lows.
A hidden bearish RSI divergence is when the price makes lower highs in a downtrend and the RSI indicator makes higher highs.
Regular divergences can signal a reversal of the trending direction.
Hidden divergences can signal a continuation in the direction of the trend.
Chart Patterns:
RSI regularly forms classic chart patterns that may not show on the underlying price chart, such as ascending and descending triangles & wedges, double tops, bottoms and trend lines etc.
Support and Resistance:
It is very often easier to define support or resistance levels on the RSI itself rather than the price chart.
Modern interpretations in trending markets:
Modern interpretations of the RSI stress the context of the greater trend when using RSI signals such as crossovers, overbought/oversold conditions, divergences and patterns.
Constance Brown, CMT, was one of the first who promoted the idea that an oversold reading on the RSI in an uptrend is likely much higher than 30%, and that an overbought reading on the RSI during a downtrend is much lower than the 70% level.
In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range, with the 40-50 zone acting as support.
During a downtrend or bear market, the RSI tends to stay between the 10 to 60 range, with the 50-60 zone acting as resistance.
For ease of executing more modern and nuanced interpretations of RSI it is very useful to break the RSI scale into bull and bear control and critical zones.
These ranges will vary depending on the RSI settings and the strength of the specific market’s underlying trend.
Limitations of the RSI
Like most technical indicators, its signals are most reliable when they conform to the long-term trend.
True trend reversal signals are rare, and can be difficult to separate from false signals.
False signals or “fake-outs”, e.g. a bullish crossover, followed by a sudden decline in price, are common.
Since the indicator displays momentum, it can stay overbought or oversold for a long time when an asset has significant sustained momentum in either direction.
Data Length Dependency when using wilders smoothing method of calculating RSI means that wilders standard RSI will have a potential initialization error which reduces with every new data point calculated meaning early results should be regarded as unreliable until calculation iterations have occurred for convergence.
ADX and DI LevelsADX:
ADX is used to quantify trend strength. ADX calculations are based on a moving average of price range expansion over a given period of time. The default setting is 14 bars, although other time periods can be used.1
ADX can be used on any trading vehicle such as stocks, mutual funds, exchange-traded funds and futures.
DI (+/-):
The directional movement index (DMI) is an indicator developed by J. Welles Wilder in 1978 that identifies in which direction the price of an asset is moving. The indicator does this by comparing prior highs and lows and drawing two lines: a positive directional movement line (+DI) and a negative directional movement line (-DI). An optional third line, called the average directional index (ADX), can also be used to gauge the strength of the uptrend or downtrend.
This indicator has the length changed from 14 to 9 so you can have more updated price calculation
I also add the 4 levels I use for day trading; the 10, 20, 30, 40-50 are the levels I like to see the Di to break over.
A lot of traders use different levels, but these I have and found most useful. You can set alerts when any Di crosses over the 40 for true trend breakout!
Stochastic RSI - DurbtradeDurbtrade Stoch RSI -
1) Stoch RSI
A) The K line can be customized to change color based on vertical direction.
B) The space between K line and D line can be filled with a color depending on whether K line is above or below the D line.
C) There are color-coded, cross-over and cross-under background fills, to signal when the K line crosses the D line.
D) K line is drawn in front of D line (D line is drawn behind K line).
E) Default values : K = 3, D = 4, RSI Length = 14, Stoch Length = 14
2) Horizontal Lines
A) Horizontal lines can be drawn automatically, so you don't have to draw them, and they don't extend past the current bar.
B) There are 11 customizable horizontal lines,
and each line is set to non-customizable increments (zero, 10, 20, 30, 40, fifty, 60, 70, 80, 90, hundred).
C) The 11 lines are divided into 2 groups:
a) 4 PAIRS of lines WITH fill options (10/90, 20/80, 30/70, 40/60... 8 lines total), and
b) 3 INDIVIDUAL lines WITHOUT fill options (zero, fifty, hundred).
D) The 4 fills give you the option to fill the space between each pair with a customizable color and opacity,
regardless of whether the lines themselves are drawn or not.
(all default values are what I feel work best for this indicator...
and initially, only the zero, fifty, and hundred lines are drawn automatically .
You may add the other lines if you choose to, by adjusting the opacity to your liking).
3) Conclusion
A) As with my previous indicators, this one maximizes information, color, discernment, clarity, and customization.
B) It is optimized for your ability to be able to easily customize the indicator according to your preferences...
for use on your own personal television, laptop, or cellular phone screen setup... and on all chart zoom levels and layouts.
C) Please feel free to comment your thoughts, critiques, or suggestions. They are all helpful!
D) Check out my previous pine script indicators if you like this one. They work really well together.
E) I hope that you find this script useful.
F) Enjoy!
//Durbtrade
Custom Multi-Timeframe Screener with AlertsThis is a multi-timeframe screener with alerts. Use this way you can create a screener on indicators using 2 or more timeframes.
In TradingView there is a limit of 40 security function calls. Every timeframe requires another security call so you can screen fewer symbols with any additional timeframe.
In this example, I use 2 timeframes, so the maximum amount of symbols you can scan is 40/2 = 20.
For 3 timeframes - 13, 4tfs - 10, 5tfs - 8 symbols and so on.
In this simplistic example, I require a cross of EMAs on the current timeframe and confirmation that one EMA above/below another from the second timeframe.
Of course, you can create much more complicated functions for this screener.
Params
- higher timeframe
- ema params
- 20 symbol inputs for instruments you want to use in this screener
Alerts
You can create an alert from it easily by selecting the screener name from the list and then selecting "Any alert() function call".
No additional configuration is required, message and alert on close is generated in the code.
You should better change the default name for your alert. Sometimes because of big amount of inputs you might receive an error.
Disclaimer
Please remember that past performance may not be indicative of future results.
Due to various factors, including changing market conditions, the strategy may no longer perform as good as in historical backtesting.
This post and the script don’t provide any financial advice.
RSI Relative Strength Index 3X - DurbtradeDurbtrade Triple RSI - 3 individual RSI's on 1 indicator, each distinguishable by length, as well as line color, thickness, opacity, and type.
(note: usable line TYPES are limited... try experimenting)
1) RSI's
A) Each RSI can be customized to change color based on RSI vertical direction (default = only RSI #1 changes color).
B) All 3 RSI's use a single Source (default Close).
C) You may customize the length of each RSI individually (I LOVE my default 14, 7, and 3!).
D) RSI #1 is the primary RSI, and is plotted LAST, so that it is drawn ABOVE RSI #2, which is drawn above RSI #3.
2) Horizontal Lines
A) Horizontal lines are also drawn automatically, so you don't have to, and they don't extend past the current bar.
B) There are 11 customizable lines, and each one is set to non-customizable increments (zero, 10, 20, 30, 40, fifty, 60, 70, 80, 90, hundred).
C) The 11 lines are divided into 2 groups:
a) 4 PAIRS of lines WITH fill options (10/90, 20/80, 30/70, 40/60... 8 lines total), and
b) 3 INDIVIDUAL lines WITHOUT fill options (zero, fifty, hundred).
D) The 4 fills give you the option to fill the space between each pair with a customizable color and opacity (the default is what I personally feel is best for each).
3) Conclusion
A) As with my previous indicators, this one maximizes information, discernment, clarity, and customization.
B) It is optimized for your ability to be able to customize a relatively basic but important indicator with ease
for use on your own personal television, laptop, or cellular phone screen setup... and on all chart zoom levels and layouts.
B) And, this being my 3rd script, please feel free to comment, critique, or leave suggestions. I find them helpful!
C) Check out my previous pine scripts if you like this one. They work well together.
D) I hope that you find this useful.
E) Enjoy!
//Durbtrade
Volume Zone Oscillator and Price Zone Oscillator (VZO/PZO)Credits go to @NeoButane as basis is taken from his open-source code and I modified it - changes described below.
Usage:
Positive -> bullish, negative -> bearish
-60/60 is seen as the limit of the oscillator range, and a pullback should be expected from there
-40/40 are in general Oversold/Overbought levels
Modifications:
added alerts
added Divergences formula
added additional types of smoothing
added signal display based on described above usage (extreme levels of oscillations and bounce back)
Koalafied RSI// Concept developed from RSI : The Complete Guide by John Hayden
// RSI is regarded as a momentum indicator. 2:1 momentum is associated with RSI values of 66.67 and 33.33 respectfully. In an Uptrend an RSI value of 40 should not be broken and in a downtrend
// a RSI value of 60 should not be exceeded. 4:1 momentum (RSI values of 80/20) can be associated with extreme market conditions, typically thought of as being Overbought or Oversold.
// Simple divergence provides a strong indication that the preceding trend will resume as soon as the retracement is completed. Multiple long-term divergences (not shown in this indicator)
// increase the likelihood that the preceding trend has ended.
// An Uptrend is indicated when:
// 1. RSI values remain in an 80/40 range
// 2. Presence of bearish divergences
// 3. Hidden bullish divergences are seen
// A Downtrend is indicated when:
// 1. RSI values remain in a 60/20 range
// 2. Presence of bullish divergence
// 3. Hidden bearish divergence is seen
// Personal additions to John Haydens concepts are horizontal pivot breaks and diagonal trendline breaks. The 80/20 line color shows the last break of horizontal pivot points, while the rsi
// line changes color with diagonal breaks. Additional support/resistance is shown by 66.67 and 33.33 lines.
Savanner Level IndexFinds Price Support Based on last 20 Bar Low, 40 Bar low, and 80 Bar low, and calculated using 1x 80 bar low, 0.5x 40 bar low, and 0.2x of the 20 bar low. Feel free to check out the script!
How to use: Add to your chart, drag the indictor to the main chart, then merge both scales on the right!
Custom GAP UP scanner for NIFTY StocksThe security function can be called 40 times in a codescript. We can therefore scan about 40 stocks out of NIFTY 50 stocks with a single script.
This code can be modified to search for other scripts by changing the condition function
condition() => open > (close * 1.0025)
Only stocks which have gap up of 0.25% or more will be reported.
Screener - Mean Reversion Channel█ OVERVIEW
This is Screener script for Mean Reversion Channel Indicator
█ Description & How To Use
The screener works by scanning through up to 40 symbols and list down symbols that are currently within Overbought/Oversold Zone as defined by Mean Reversion Channel indicator.
The Overbought/Oversold Zone are further categorized and sorted by:
Strong : Indicated by "(Strong)" next to the symbol name
Normal : Indicated by the absence of "(Strong)" or "(Weak)" next to the symbol name
Weak : Indicated by "(Weak)" next to the symbol name
Notes: Refer to chart above to see how the Zone are categorized.
Notes: If the screener displays "Nothing Interesting". It simply means none of the screened assets are within the Overbought/Oversold Zone.
█ Features
- Scan up to 40 symbols at a time (By default, no asset is define. Once configured all the symbols you required, remember to save as default to save you from pain of configuring it again in the future)
- Options to scan by zones
- Custom Timeframe
█ Limitation
Due to multiple use of security() function required to call other symbols, expect the screener to be slow at certain times
█ Disclaimer
Past performance is not an indicator of future results.
My opinions and research are my own and do not constitute financial advice in any way whatsoever.
Nothing published by me constitutes an investment recommendation, nor should any data or Content published by me be relied upon for any investment/trading activities.
I strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Any ideas to further improve this indicator are welcome :)
Credit: QuantNomad for his script idea on custom screener
[Zekis]ScreenerA simple screener that scan thru multiple pairs for a setup.
The screener have as example an EMA 50 cross, so you have to change it with your indicator/strategy.
You can use a maximum of 40 security() function, right now there are 20, so you can have a total of 40 pairs.
Bollinger Bands %B Compare VixThis imple script converts your chosen chart price and outputs it as a percentage in relation to the Vix percentage.
If price (Blue line) is higher than 0.60 and vix (Red Line) is lower than 0. 40 then there is lower volatility and this is good for buying.
If price (Blue line) is lower than 0. 40 and vix (Red Line) is higher than 0.60 then there is higher volatility and this is good for selling, exiting and cash only.
If you like risk you can enter as soon as the price and vix cross in either direction
This is my first script, please give me a lot of critique, I won't cry hahaha :)
For greater accuracy, you use these Vix products for their specific stocks/Indicies:
Apple - VXAPL
Google - VXGOG
Amazon - CBOE:VXAZN
IBM - CBOE:VXIBM
Goldman Sachs - CBOE:VXGS
NASDAQ 100 = CBOE:VXN
SP100 - CBOE:VXO
SP500 (3months) - VIX3M
XLE(energy sector) - CBOE:VXXLE
EWZ(brazil etf) - VXEWZ
EEM( emerging markets etf) - CBOE:VXEEM
EFA (MSCI ETF) - CBOE:VXEFA
FXI (Cina ETF) - CBOE:VXFXI
Bitcoin Bullish Percent IndexHello Traders,
This is Bitcoin Bullish Percent Index script. First lets talk about what the Bullish Percent Index and how it is calculated:
"The Bullish Percent Index (BPI) is a breadth indicator based on the number of securities on Point & Figure Buy Signals, Developed by Abe Cohen in the mid-1950s. Because a security is either on a P&F Buy or Sell Signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals."
The calculation is straightforward and simple: (Number of securities on P&F Buy signals) / (Total number of securities)
Here you can see what the P&F buy signal is:
In this script I choose 40 cryptos that is correlated ( as I see ) with BTC (including BtcUsdt). in the first part the script creates P&F chart for each security and check if there is Buy or Sell signal and sum the buy signals if there is. in the second part it creates P&F chart by using the P&F buy/sell signals coming from the securities P&F chart. because of complicated calculation the script may need a few seconds to load.
in the first part reversal value is 3 by default but you can set different values as reversal. sometimes I got better results with reversal = 5.
in BPI part reversal = 3 is used. so each box represents 2% (each X or O is a box). And this means it takes at least a 6% move in BPI for a reversal. the Bullish Percent Index favors the bulls when above 50% and the bears when below 50%. The bulls have the edge when over 50% of stocks are on a P&F Buy Signal. BPI is also considered overbought when above 70% and oversold when below 30%. BPI can move between 0 and 100.
Because of 40 securities are used in the script and all different prices, it uses Percentage scaling only. it can calculate the Percentage automatically by using the time frame of the chart or you can set it as you wish.
The Signals coming from BPI:
Bull Alert: BPI is below 30% and then forms a new column of X's (rises)
Bear Alert: BPI is above 70% and then forms a new column of O's that decline below 70%.
Bull Confirmed: BPI is on a P&F buy signal and in a column of X's (rising).
Bear Confirmed: BPI is on a P&F sell signal and in a column of O's (falling).
Bull Correction: BPI is on a P&F buy signal, but currently falling (column of O's).
Bear Correction: BPI is on a P&F sell signal, but currently rising (column of X's).
If you are not familiar with Bullish Percent Index you better search it on the net to get more info, you can find a lot of articles and web sites about BPI.
as I remember I developed the script 6-7 months ago and today I had chance to publish it as it was
Enjoy!
RSI TrendsRSI is a momentum indicator, however most people seem to be using it to go against the momentum by trying to identify tops/bottoms using it. Its in my opinion the wrong way to be using it. It can be easily used for trend following which seems like a better use for it.
Uptrend - RSI > 60
Downtrend - RSI < 40
Sideways - RSI between 40 and 60
If however not interested in filtering for sideways trends and convert it to a long-short only strategy that stays in market all the time then it can be simply modified by setting both overbought/oversold thresholds to 50. In such a case uptrend will be above 50 and downtrend will be less than 50.
Note: wait for close for current bar to be confirmed as RSI is calculated at close
Relative Strength of Volume Indicators by DGTThe Relative Strength Index (RSI) , developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements.
• Traditionally the RSI is considered overbought when above 70 and may be primed for a trend reversal or corrective pullback in price, and oversold or undervalued condition when below 30. During strong trends, the RSI may remain in overbought or oversold for extended periods.
• Signals can be generated by looking for divergences and failure swings. If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred
• RSI can also be used to identify the general trend. In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance
This study aim to implement Relative Strength concept on most common Volume indicators, such as
• Accumulation Distribution is a volume based indicator designed to measure underlying supply and demand
• Elder's Force Index (EFI) measures the power behind a price movement using price and volume
• Money Flow Index (MFI) measures buying and selling pressure through analyzing both price and volume (used as it is)
• On Balance Volume (OBV) , created by Joe Granville, is a momentum indicator that measures positive and negative volume flow
• Price Volume Trend (PVT) is a momentum based indicator used to measure money flow
Plotting will be performed for regular RSI and RSI of Volume indicator (RSI(VOLX)) selected from the dialog box, where the possibility to apply smoothing is provided as option. Additionally, labels can be added optionally to display the value and name of selected volume indicator
Secondly, ability to present Volume Histogram within the same study along with its Moving Average or Volume Oscillator based on selection
Finally, Volume Based Colored Bars , a study of Kıvanç Özbilgiç is added to emphasis volume changes on top of the bars
Nothing excessively new, the study combines RSI with;
- RSI concept applied to some of the common Volume indicators presented with a highlighted over/under valued threshold area, optional labeling and smoothing,
- added Volume data with additional information and
- colored bars based on volume
Thanks @Vishant_Meshram for the inspiration 🙏
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script