KDJ-RSI Buy/Sell Signal ver. 1

The KDJ-RSI Buy/Sell Signal ver. 1 indicator is a momentum-based technical analysis tool that combines the Relative Strength Index (RSI) and the KDJ Stochastic oscillator to identify high-probability trend reversal points.

Usage

The tool generates visual signals on the chart to assist traders in identifying potential entry and exit points based on extreme overbought and oversold conditions across two momentum indicators.

• Buy Signals: Triggers when the RSI is below the oversold threshold (default 25) and the KDJ 'J' line crosses below 0. This indicates an exhausted downtrend.
• Sell Signals: Triggers when the RSI is above the overbought threshold (default 85) and the KDJ 'J' line crosses above 100. This indicates an exhausted uptrend.

The script automatically calculates dynamic Take Profit (TP) and Stop Loss (SL) levels based on the current timeframe. For example, higher timeframes like Daily or Weekly use wider percentage offsets (50% TP / 5% SL) compared to lower timeframes like the 5-minute chart (4% TP / 2% SL).

Details

This script integrates two popular oscillators to filter out noise. The RSI measures the speed and change of price movements, while the KDJ—an extension of the Stochastic oscillator—provides a more sensitive 'J' line that highlights extreme price deviations.

A unique feature of this implementation is the built-in volatility filter for intraday timeframes below 15 minutes. If recent price movement (within 3 bars) exceeds 1.5%, the script suppresses signals to avoid "FOMO" entries or high-volatility traps. The script is particularly optimized for major crypto pairs like BTC/USDT on 1h, 4h, and 1d timeframes.

Settings

RSI Inputs

• RSI Source: Determines the price data used for RSI calculation (default is Close).
• RSI Length: The lookback period for the RSI calculation (default is 14).
• RSI Overbought: The upper threshold for sell signal qualification (default 85).
• RSI Oversold: The lower threshold for buy signal qualification (default 25).

KDJ Inputs

• KDJ Length: The lookback period for the Stochastic component (default 14).
• KDJ Smooth: The smoothing factor for the K and D lines (default 3).

FAQ

How do I use the Take Profit and Stop Loss lines?

When a signal is triggered, the indicator plots horizontal green (TP) and red (SL) lines. These remain active until the price touches either level, at which point a "TP" or "SL" label is displayed on the chart.

Why don't I see signals on 1-minute or 5-minute charts?

The indicator includes a volatility filter for timeframes below 15 minutes. If the price has moved too rapidly recently, signals are suppressed to protect against high-volatility spikes and FOMO-driven price action.

How can I access KDJ-RSI Buy/Sell Signal ver. 1?

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