MACD, RSI, & RVOL Strategy

The MACD, RSI, & RVOL Strategy indicator combines trend, momentum, and volume metrics to generate long and short trading signals based on a multi-condition confluence system.

Usage

The strategy generates signals when at least two out of three specific conditions are met, providing a robust filtering mechanism to reduce false signals. It is primarily designed for the 15-minute timeframe but can be applied to various intervals.

Long Entry Conditions (2/3 required):

• RSI crosses above the Oversold level (default 30).
• MACD line crosses above the Signal line.
• Relative Volume (RVOL) crosses above the value of 2.

Short Entry Conditions (2/3 required):

• RSI crosses below the Overbought level (default 70).
• MACD line crosses below the Signal line.
• Relative Volume (RVOL) crosses below the value of 5.

Details

The strategy evaluates market conditions through three distinct lenses:

1. MACD: Captures momentum shifts. A crossover of the MACD and Signal lines identifies changes in the positive or negative direction of the security.
2. RSI: Measures price velocity and magnitude. It identifies potential reversals when price exits extreme oversold or overbought zones.
3. RVOL: Calculates the ratio of current volume to its simple moving average over a specified period. High RVOL (> 2) confirms the strength behind a move, while low RVOL (< 5) is used as a factor for exiting or reversing positions.

Settings

• RSI Length: The lookback period for the Relative Strength Index calculation.
• Oversold Level: The threshold used to identify oversold conditions (default 30).
• Overbought Level: The threshold used to identify overbought conditions (default 70).
• MACD Fast Length: The short-term EMA length for MACD calculation.
• MACD Slow Length: The long-term EMA length for MACD calculation.
• MACD Signal Length: The smoothing length for the MACD Signal line.
• RVOL Length: The period used to calculate the average volume for the Relative Volume ratio.

FAQ

How do I interpret the signals? A signal is plotted when the strategy detects a confluence of at least two indicators (e.g., RSI and MACD, or MACD and RVOL) moving in the same direction, suggesting a higher probability trade setup.

Can I use this on daily charts? While optimized for 15-minute intervals, the parameters can be adjusted in the settings menu to better fit higher timeframes like the daily or weekly charts.

How can I access the MACD, RSI, & RVOL Strategy? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.