RSI BB StdDev SignalOverview
The RSI BB StdDev Signal Indicator is a powerful tool designed to enhance your trading strategy by combining the Relative Strength Index (RSI) with Bollinger Bands (BB). This unique combination allows traders to identify potential buy and sell signals more accurately by leveraging the strengths of both indicators. The RSI helps in identifying overbought and oversold conditions, while the Bollinger Bands provide a dynamic range to assess volatility and potential price reversals.
Key Features
— RSI Calculation: The indicator calculates the RSI based on user-defined parameters, allowing for customization to fit different trading styles.
— Bollinger Bands Integration: The RSI values are smoothed using a moving average, and Bollinger Bands are applied to this smoothed RSI to generate buy and sell signals.
— Divergence Detection: The indicator includes an optional feature to detect and alert on bullish and bearish divergences between the RSI and price action.
— Customizable Alerts: Users can set up alerts for buy and sell signals, as well as for divergences, ensuring they never miss a trading opportunity.
— Visual Aids: The indicator plots the RSI, Bollinger Bands, and signals on the chart, making it easy to visualize and interpret the data.
How It Works
1. RSI Calculation:
— The RSI is calculated using the change in the source input (default is close price) over a specified period.
— The RSI values are then plotted on the chart with customizable overbought and oversold levels.
2. Smoothing and Bollinger Bands:
— The RSI values are smoothed using a moving average (SMA, EMA, SMMA, WMA, VWMA) selected by the user.
— Bollinger Bands are applied to the smoothed RSI to create dynamic upper and lower bands.
3. Signal Generation:
—Buy signals are generated when the RSI crosses above the lower Bollinger Band.
—Sell signals are generated when the RSI crosses below the upper Bollinger Band.
—These signals are plotted on both the RSI pane and the main price chart for easy reference.
4. Divergence Detection:
— The indicator can detect and alert on regular bullish and bearish divergences between the RSI and price action.
— Bullish divergences occur when the price makes a lower low, but the RSI makes a higher low.
— Bearish divergences occur when the price makes a higher high, but the RSI makes a lower high.
Usage
1. Setting Up:
— Add the indicator to your TradingView chart.
— Customize the RSI length, source, and other parameters in the settings panel.
— Enable or disable the divergence detection based on your trading strategy.
2. Interpreting Signals:
— Use the buy and sell signals generated by the RSI crossing the Bollinger Bands as potential entry and exit points.
— Pay attention to divergences for additional confirmation of trend reversals.
3. Alerts:
— Set up alerts for buy and sell signals to receive notifications in real-time.
— Enable divergence alerts to be notified of potential trend reversals.
Conclusion
The RSI BB StdDev Signal Indicator is a comprehensive tool that combines the strengths of the RSI and Bollinger Bands to provide traders with more accurate and reliable signals. Whether you are a beginner or an experienced trader, this indicator can enhance your trading strategy by offering clear visual cues and customizable alerts.
Note
This indicator is provided with open-source code, allowing users to understand its logic and customize it further if needed. The detailed description and customizable settings ensure that traders of all levels can benefit from its unique features.
Rsidiv
RSI with Close & Tail DivergencesRSI divergence is a cornerstone signal for both stock and cryptocurrency traders, renowned for its reliability.
The basis for measuring divergence can vary:
Historically, it's been determined by the candlestick's closing price.
However, a contemporary approach uses the tail values, specifically the high and low prices, of the candlestick.
Depending on the criteria selected, the resultant signals can be markedly different.
Our innovative indicator offers:
Divergence tracking based on the closing price of the candlestick.
Divergence tracking considering the candlestick's peak and trough values.
A unique convergence of both types of divergence signals.
With this tool, traders are empowered to make informed decisions, anchored in precise divergence cues.
This indicator boasts the following capabilities:
Displays divergence based on closing price, highs/lows, as well as a unique combined criterion.
Highlights pivot points.
Denotes divergence spots on the RSI chart with lines.
Offers a background color representation instead of labels.
RSI Divergences on price chart - Open Source CodeHello Traders,
I have some exciting news to share with you all! Recently, I came across an incredible RSI divergences indicator developed by Socrate_FR. This indicator, in my opinion has an exceptional accuracy in detecting RSI divergences. However, during my exploration of other indicators in the TradingView library that display signals on the price chart, I found that many of them were often unreliable and missed out on important divergences.One such example is the Prices / RSI Divergences Detector by vtllr. Although vtllr did an amazing job with the indicator, I noticed that it didn't capture several relevant divergences accurately.
This observation inspired me to enhance the most accurate RSI divergences indicator available by showcasing the signals directly on the price chart. By doing so, I aimed to address the issue of unreliable and missed divergences in other price chart indicators. With this enhanced version, you can now effortlessly identify and track RSI regular divergences on the price chart itself:
-Regular bullish divergence occurs when the price forms lower lows while the RSI indicator forms higher lows. It suggests a potential bullish reversal (green line plot)
-Regular bearish divergence occurs when the price forms higher highs while the RSI indicator forms lower highs. It suggests a potential bearish reversal (red line plot)
Another key mofication:
This Indicator introduces a simpler approach compared to the original Socrate indicator. While Socrate differentiated divergences into eight types for both bullish and bearish scenarios, our enhanced version focuses on two distinct categories: small and big divergences. This decision was made to provide a clearer and more user-friendly experience. By condensing the divergence types into two groups, traders can easily identify and analyze the significance of the divergences without getting overwhelmed by excessive variations. The small divergences represent relatively minor divergences, while the big divergences indicate stronger and more significant signals.
-Small divergences represent relatively minor divergences (plotshape small circle)
-Big divergences indicate stronger signals (plotshape big circle)
I firmly believe that this enhanced RSI Divergences Indicator will be an invaluable tool for traders who rely on RSI analysis in their trading strategies. It combines the accuracy of Socrate_FR's original indicator with the enhanced visibility of signals on the price chart, ensuring you never miss any important divergences.
If you're interested in trying out this enhanced version of the indicator, please feel free to access the open-source code. If you want to visit and try the original version of the code visit Socrate_FR profile.
www.tradingview.com
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Support us:)
If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider to follow, giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
RSI Potential Divergence - FontiramisuIndicator showing potential momentum divergences on RSI Momentum.
The problem with the classic divergence is that when the signal appears, it is sometimes too late to enter a trade.
The potential divergence corrects this problem by signaling the beginning of a potential divergence.
RSI is a momentum indicator that offers relevant insights with divergences.
Potential divergences are indicated with the letter B and a red color for Bearish Div or Green color for Bullish Div .
Potential divergence is confirmed when the line and the label "Bear"' or "Bull" appear.
Options Volume Indicator
Volume Indicator for Option Trading, it is a simple indicator based on Relative Strength Index. There are two horizontal lines are mention 10 and -10, if bar crossed above the (Line 10) then go for buy and when Bar cross under (Line -10) go for sell side.
If Bar Color changed to Respective color of the previous bar i.e. color gets darker then you can exit/ trail SL there because it overbought / Oversold position and vice versa for Sell Side.
this volume indicator works on any Script.
The Black Floating Line indicates the Average volume
RSI Div at Daily VWAP StDevMean Reversion indicator based on RSI Divergences at Overbought/Oversold conditions with Price above/below a Standard Deviation from Daily VWAP. Useful for intra-day trading.
Signal criteria:
1. RSI is at Overbought/Oversold
2. RSI Divergence present (not hidden)
3. RSI has not reached Neutral level (i.e. 50)
4. Price has crossed above/below a Standard Deviation from Daily VWAP
Config Options:
- RSI length (default:14)
- Divergence Lookback Period (default:14)
- RSI Oversold/Overbought tresholds (default: 70/30)
- RSI Reset Level (default: 55/45)
- Use VWAP Std Dev (default: yes)
- Standard Deviation from Daily VWAP (default: 1.51)
Use with discretion.
