This script offers a powerful analytical tool combining Moving Averages (MA), Relative Strength Index (RSI), Stochastic Oscillator, Bollinger Bands, and Average True Range (ATR) to deliver nuanced insights into market trends and volatility. Designed for traders seeking a multi-faceted approach, it identifies potential opportunities while managing risk through integrated alerts and real-time data visualization.
Key Features and Integration
1. Moving Averages (MA20 & MA50)
Purpose:
Trend Identification via two Simple Moving Averages:
- MA20 (short-term)
- MA50 (long-term)
Signals:
- Bullish Trend: MA20 crosses above MA50 (Golden Cross).
- Bearish Trend: MA20 crosses below MA50 (Death Cross).
Integration:
- Serves as the foundational trend filter for other indicators.
👉 Discover how MA crossovers enhance trading strategies
2. Relative Strength Index (RSI)
Purpose:
Measures momentum over 14 periods with customizable thresholds:
- Overbought: >70
- Oversold: <30
Integration:
- Confirms trend strength from MAs.
- Overbought/oversold signals may precede reversals when aligned with MA crossovers.
3. Stochastic Oscillator
Purpose:
- Tracks momentum via %K and %D lines.
Signals:
- Bullish: %K crosses above %D in oversold territory (<20).
- Bearish: %K crosses below %D in overbought territory (>80).
Integration:
- Strengthens RSI signals by adding momentum confirmation.
4. Bollinger Bands
Purpose:
- Visualizes volatility using standard deviations from a moving average.
- Dynamic Support/Resistance: Prices touching bands may indicate reversals.
Integration:
- Works with RSI/Stochastic to identify overextended price movements.
👉 Learn to leverage Bollinger Bands for volatility trading
5. Average True Range (ATR)
Purpose:
- Measures volatility via 14-period ATR.
- ATR Bands: Sets dynamic stop-loss/take-profit levels.
Integration:
- Complements Bollinger Bands for comprehensive volatility analysis.
6. Information Table
Real-Time Data:
- Displays MA values, RSI, Stochastic, Bollinger Basis, ATR, and Trend Status (Bullish/Bearish/Sideways).
7. Periodic Labels
Enhanced Tracking:
- Labels every 50 bars show RSI/Stochastic values for long-term pattern recognition.
Synergistic Workflow
- Trend Confirmation: MAs define direction; RSI/Stochastic validate momentum.
- Volatility Context: Bollinger Bands/ATR refine entry/exit points.
- Signal Strength: Concurrent signals boost confidence.
Usage Guidelines
Trend Analysis
- Use MA crossovers + Trend Status for direction.
- Confirm with RSI/Stochastic alignment.
Entry/Exit Tactics
- Enter trades at oversold (bullish) or overbought (bearish) extremes.
- Watch Bollinger Band interactions for reversals.
Risk Management
- Set stop-loss/take-profit via ATR bands.
- Adjust positions based on Bollinger Band width.
Customization
- Adjust indicator lengths, thresholds, and visuals (colors/labels).
Unique Value Proposition
- Holistic Analysis: Integrates 5+ indicators seamlessly.
- User-Centric Design: Pre-configured alerts + educational comments.
FAQ
Q1: How do MA crossovers improve trend analysis?
A1: Golden/Death Crosses (MA20/MA50) filter noise, highlighting high-probability trends.
Q2: Can RSI and Stochastic signals conflict?
A2: Yes—prioritize signals aligned with MA trends for consistency.
Q3: Why combine Bollinger Bands with ATR?
A3: Bollinger Bands show price extremes; ATR quantifies volatility for risk sizing.
Disclaimer
- Not financial advice. Trading carries risk; conduct independent analysis.