Adaptive Bollinger-RSI Trend Signal

The Adaptive Bollinger-RSI Trend Signal indicator provides traders with a multi-layered approach to identifying potential trend reversals and entry points by combining price volatility analysis with momentum verification.

Usage

The indicator utilizes a specific sequence of technical events to generate signals. A Buy Signal is triggered when the price has recently crossed below the lower Bollinger Band (oversold volatility) and the RSI subsequently crosses above its lower threshold (upward momentum), coupled with a shift in the trend of the Bollinger Band basis. Conversely, a Sell Signal occurs when the price crosses above the upper band and the RSI crosses below the upper threshold while the basis trend turns downward.

Key usage features include:

• Signal Counters: Each consecutive signal in the same direction is numbered. This helps traders track the frequency of signals within a single trend.
• DCA Dashboard: The tool calculates the average entry price (Dollar-Cost Averaging) for consecutive signals, displaying the average cost and position count in a real-time table.
• Adaptive Smoothing: Users can toggle between a standard Simple Moving Average (SMA) and a T3 moving average for the Bollinger Bands basis to filter out market noise.

Details

The script functions by tracking internal "states" for crossovers and momentum thresholds. Unlike standard indicators that signal immediately upon a touch, this script requires a confirmation sequence:

1. Volatility Breach: The source price must cross outside the Bollinger Bands.
2. Momentum Reversal: The RSI must cross back from extreme levels (e.g., crossing above 35 or below 65).
3. Trend Confirmation: The basis (middle line) of the Bollinger Bands must change direction (e.g., basis > previous basis for a buy).

The inclusion of the T3 moving average option provides a "warmer" and more responsive basis line compared to the traditional SMA, which can be beneficial in fast-moving markets to reduce lag in trend detection.

Settings

Core Configuration

• Use T3 Instead of SMA: Toggles the smoothing method for the Bollinger Bands basis.
• T3 Length/Volume Factor: Controls the period and dampening effect of the T3 average if enabled.
• RSI Upper/Lower Threshold: Sets the momentum levels (default 65/35) required to validate a reversal.
• Bollinger Bands Length/Source/Multiplier: Standard parameters to define the volatility envelope.
• Crossover/Crossunder Source: Defines which price point (Close, High, Low, etc.) is used to trigger the band breach.

Visuals & Dashboard

• Show Table Label: Toggles the visibility of the DCA and signal count summary.
• Color Inputs: Allows full customization of the basis line, upper/lower bands, fills, and signal label colors.

FAQ

How do I interpret the signal counters?

The counters indicate the number of times a signal has fired in the current direction. If a "Buy 3" appears, it means three buy conditions have been met since the last sell signal. The counter resets when an opposite signal is generated.

What is the advantage of the DCA calculation?

The DCA (Dollar-Cost Averaging) value shows the mathematical average of all signal prices in a current sequence. This helps traders managing multiple entries to understand their break-even point.

How can I access Adaptive Bollinger-RSI Trend Signal?

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