Triangular Stoch RSI Bands

The Triangular Stoch RSI Bands indicator plots price-based dynamic bands derived from smoothed Stochastic RSI overbought and oversold conditions to identify potential trend reversals and volatility ranges. By applying a triangular moving average (TMA) to key price levels triggered by momentum shifts, the tool projects support and resistance zones directly onto the price chart.

Usage

The Usage section focuses on interpreting the interaction between price and the generated bands.

• Trend Identification: The central filled area between the green (TMA Highs) and red (TMA Lows) lines represents the core value area. When price trades above the green line, the background highlights bullish momentum; when below the red line, it highlights bearish momentum.
• Reversal Triggers: The tool monitors Stochastic RSI crossovers. A bullish condition is met when the %K line crosses under 20 while price is in a specific relation to dynamic pivots, often signaling an accumulation zone. Conversely, a cross over 80 in a bearish context signals potential exhaustion.
• Volatility Bands: Multiple outer layers (Depth 1-4) act as overextended price targets or dynamic support/resistance levels. These are calculated as percentage deviations from the triangular base.

Details

The script utilizes a unique "triangularity" approach by applying a triple-smoothed moving average (TMA) to price points captured during specific RSI conditions. It first establishes a baseline using dynamic pivots (highest/lowest price over specific periods) adjusted by Average True Range (ATR). It then identifies "Highs" and "Lows" specifically when the Stochastic RSI hits extreme levels and smooths these values using a TMA to create stable, non-erratic price bands.

Settings

• Dynamic Length: Determines the lookback period for the Triangular Moving Average smoothing and dynamic pivot calculations.
• K / D: Smoothing parameters for the Stochastic component of the Stoch RSI.
• RSI Length / Stochastic Length: Controls the sensitivity of the underlying momentum oscillator.
• RSI Source: The price source used for RSI calculations (default is Close).
• Depth 1-4: Percentage offsets that define the distance of the outer bands from the core TMA levels.

FAQ

How do I use the alerts in this indicator?

The indicator includes built-in alerts for bullish/bearish conditions based on the Stoch RSI crossing extreme levels, as well as price breakouts above or below the core TMA bands.

What does "Triangular" refer to in this script?

It refers to the use of a Triangular Moving Average (TMA), which is a weighted average that applies more weight to the middle of the time series, resulting in a very smooth line compared to simple or exponential moving averages.

How can I access Triangular Stoch RSI Bands?

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