Noro's BottomSensivity v0.6 strategy + rsi + Alarm

The Noro's BottomSensivity v0.6 strategy + rsi + Alarm indicator is a comprehensive bottom-seeking tool that combines multiple technical filters and price action patterns to identify potential market reversal points. By synthesizing various specialized indicators into a scoring system, it provides traders with a systematic approach to identifying exhausted downtrends.

Usage

The strategy operates by calculating a "Bottom Score" based on several togglable technical conditions. When the total score meets or exceeds the Bottom-Sensivity threshold, a potential entry signal is generated.

To refine entries, the script incorporates an RSI filter and an optional SMA filter. A typical long entry occurs when a bottom pattern is detected while the RSI (14) is below the Over Sold level. The strategy is programmed to exit positions once the RSI crosses below the Over Bought level, signaling that the relief rally may have peaked.

Key features used for scoring include:

• Locomotive Pattern: Identifies specific sequences of bearish candles followed by a bullish reversal.
• Pin-bar: Detects classic reversal candlesticks with long lower shadows.
• WVF (Williams Vix Fix): Uses volatility-based exhaustion metrics to find market bottoms.
• CVI & UCS: Specialized momentum and volatility oscillators designed to spot trend exhaustion.

Details

The script executes a multi-factor analysis by aggregating signals from six distinct methods. The Bottom-Sensivity setting acts as a consensus filter; for example, setting it to 3 requires at least three of the sub-indicators to trigger simultaneously.

The integration of the SMA Filter ensures that signals are only considered when price is trading below the specified Simple Moving Average, aligning the strategy with a "mean reversion" or "dip buying" philosophy. The strategy also includes built-in alert conditions for both the entry (BUY+RSI) and the exit (EXIT) to assist with automated trade monitoring.

Settings

• Over Sold: The RSI level below which a bottom signal is validated for entry (default 35).
• Over Bought: The RSI level used to trigger a strategy exit when price crosses below it (default 70).
• Bottom-Sensivity: The minimum number of indicators that must agree to trigger a bottom signal (Range 1-4).
• SMA Length: The lookback period for the filter SMA (Range 20-200).
• Bars of Locomotive: The number of preceding candles required for the Locomotive pattern.
• Use bottom-pattern Locomotive?: Toggles the Locomotive pattern detection.
• Use bottom-pattern Pin-bar?: Toggles the Pin-bar detection.
• Use bottom-indicator CVI?: Toggles the CVI indicator scoring.
• Use bottom-indicator UCS?: Toggles the UCS indicator scoring.
• Use bottom-indicator WVF?: Toggles the Williams Vix Fix scoring.
• Use bottom-indicator RSI?: Toggles the internal 2-period RSI scoring.
• Only red candles?: If enabled, entries are only valid on bearish candle closes.
• Use SMA Filter?: When enabled, the high must be below the SMA for a valid signal.
• Show SMA Filter?: Toggles the visibility of the filter SMA on the chart.

FAQ

How do I interpret the "Bottom-Sensivity" setting?

The setting determines the strictness of the signal. A higher value requires more technical indicators to align simultaneously, leading to fewer but potentially higher-probability signals.

What RSI does the strategy use for entries?

The strategy uses a standard 14-period RSI for the final entry validation and exit logic, while an internal 2-period RSI can be used as one of the scoring components.

How can I access Noro's BottomSensivity v0.6 strategy + rsi + Alarm?

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