RSI BULL BEAR + ADX

The RSI BULL BEAR + ADX indicator provides a trend-adaptive Relative Strength Index that dynamically adjusts its calculation parameters and threshold levels based on moving average trends and ADX-measured volatility. This tool aims to identify overbought and oversold conditions that are specifically calibrated to the current market regime, allowing for more precise entries and exits.

Usage

The indicator switches between a "Bull" and "Bear" mode based on the relationship between a long-term and short-term Simple Moving Average (SMA).

• Long Signals: Occur when the RSI value crosses below the dynamic lower threshold, suggesting an oversold condition within the current trend.
• Short Signals: Occur when the RSI value crosses above the dynamic upper threshold, suggesting an overbought condition within the current trend.

The ADX component further modifies these thresholds; when the ADX is high (indicating a strong trend), the thresholds may expand to prevent premature signals. Conversely, during low ADX periods (ranging markets), the thresholds may contract to capture smaller mean-reversion opportunities.

Details

The script functions by evaluating the relationship between a fast SMA (default 50) and a slow SMA (default 1000). When the fast SMA is above the slow SMA, the script utilizes the "Bull" RSI length and thresholds. When below, it uses the "Bear" parameters.

Furthermore, it calculates a custom ADX. If this ADX value exceeds the "ADX High" setting, it applies a "Mod High" offset to the upper RSI boundary. If the ADX falls below the "ADX Low" setting, it applies a "Mod Low" offset to the lower RSI boundary. This dual-layered logic ensures the RSI reflects both the directional bias and the intensity of market movement.

Settings

Moving Averages

• SMA Long: The period for the long-term trend filter.
• SMA Short: The period for the short-term trend filter.

BULL RSI

• BULL RSI Length: RSI period used when the short SMA is above the long SMA.
• BULL RSI High: The baseline upper threshold for bull markets.
• BULL RSI Low: The baseline lower threshold for bull markets.

BEAR RSI

• BEAR RSI Length: RSI period used when the short SMA is below the long SMA.
• BEAR RSI High: The baseline upper threshold for bear markets.
• BEAR RSI Low: The baseline lower threshold for bear markets.

RSI Modification (ADX Based)

• BULL/BEAR Mod High: The value added to the upper threshold when ADX is high.
• BULL/BEAR Mod Low: The value added to the lower threshold when ADX is low.

ADX

• ADX Length: The period used for the ADX calculation.
• ADX High: The level above which the ADX is considered "high" for threshold modification.
• ADX Low: The level below which the ADX is considered "low" for threshold modification.

FAQ

How do I access the RSI BULL BEAR + ADX?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why does the RSI line change color?

The RSI line changes color to represent the state of the oscillator relative to its dynamic bands; green typically signifies an oversold state (below the low bound), while red signifies an overbought state (above the high bound).

Can I change the trend detection logic?

Yes, by adjusting the SMA Long and SMA Short inputs, you can change how the script defines "Bull" vs "Bear" regimes, which in turn changes which RSI settings are active.