RSI x 3 Combo

The RSI x 3 Combo indicator provides a multi-faceted approach to trend analysis by combining the Relative Strength Index (RSI) with three distinct technical overlays to identify potential reversal and trend-following signals. By integrating Bollinger Bands, Wave Trend, and Directional Index (DI) logic with RSI movements, the tool filters market noise and highlights high-consequence entry points directly on the price chart.

Usage

The script generates three distinct types of visual labels on the chart, each representing a specific combination of technical conditions:

• RSI & BB: Signals occur when the RSI crosses through its own Bollinger Band boundaries. A bullish label appears when the RSI crosses up through the lower band, while a bearish label appears when it crosses down through the upper band.
• RSI & WT: This combination uses the Wave Trend oscillator in conjunction with RSI. A signal is triggered when the Wave Trend exhibits a crossover in oversold or overbought territory (specifically below -67 or above 67) while the RSI condition is met.
• RSI & DI: These signals align RSI momentum with the Directional Index. A bullish signal requires the DI+ to be above DI- alongside an RSI bullish crossover; conversely, a bearish signal requires DI- to be above DI+ during an RSI bearish crossunder.

Users can use these signals to identify confluence. For instance, when multiple labels appear near the same price level, it may indicate a stronger potential for a trend shift.

Details

The indicator calculates several distinct components to form its signals:

• RSI-based Bollinger Bands: Unlike standard price-based bands, these bands are calculated using the RSI values to detect volatility shifts within the momentum oscillator itself.
• Wave Trend (WT): An adaptation of a traditional oscillator that uses EMA smoothing of HLC3 prices to identify extreme overbought or oversold conditions.
• Directional Index (DI): Components of the Average Directional Index (ADX) system are used to ensure that the trend direction aligns with the RSI momentum before a signal is plotted.
• Range Filter Logic: While the script includes Range Filter calculations, these are currently configured to serve as a background condition (set with a wide 100-bar lookback) to ensure focus remains on the primary RSI combinations.

Settings

RSI & Bollinger Bands

• RSI Source: The price source used to calculate the RSI (default is Close).
• RSI Length: The lookback period for the RSI calculation.
• BB Length: The lookback period for the Bollinger Bands applied to the RSI.
• BB StdDev: The standard deviation multiplier used to determine the width of the RSI Bollinger Bands.

Wave Trend

• WT Channel Length: The period used for the initial EMA of price.
• WT Average Length: The smoothing period for the Wave Trend oscillator.
• WT Over Bought/Sold Levels: Thresholds used to define the boundaries for extreme oscillator readings.

Directional Index

• DI Length: The smoothing period for the Positive and Negative Directional Indicators.
• DI Threshold: The level used for directional trend confirmation.

FAQ

How do I use the RSI x 3 Combo effectively?

The indicator is best used as a confluence tool. While it filters noise via its three internal combinations, traders often pair it with volume-weighted indicators like MFI (Money Flow Index) or VFI (Volume Flow Indicator) to confirm price action.

Can I set alerts for specific signals?

Yes, the script includes individual alert conditions for each of the three combinations (RSI/BB, RSI/WT, and RSI/DI), as well as a master alert that triggers when any of the three conditions are met.

How can I access RSI x 3 Combo?

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