Stochastic RSI 3in1 & Volatility peaks + ADX

The Stochastic RSI 3in1 & Volatility peaks + ADX indicator provides a multi-layered approach to trend analysis by combining triple Stochastic RSI calculations, ADX-based trend strength mapping, and relative volatility peaks. This tool is designed to help traders identify momentum shifts, trend exhaustion, and high-probability reversal points within a single visual pane.

Usage

The tool integrates several core components to provide a comprehensive view of market dynamics:

• Triple Stochastic RSI: The indicator plots three distinct Stochastic RSI lines representing different time horizons. A strong directional move is typically identified when all three lines cross and move in unison from extreme levels (overbought or oversold).
  • Orange Line: Reflects the live price movement (Shortest term).
  • Green Line: Represents mid-term momentum.
  • Red Line: Represents long-term price movement and trend direction.
• ADX Columns: The transparent columns represent the Average Directional Index (ADX). The height of these "mountains" indicates trend strength; a rising mountain suggests a strengthening trend, while a peaking mountain often precedes a trend exhaustion or change.
• Volatility Peaks: The area plot displays relative volatility. High peaks (often colored green in bullish conditions or red in bearish conditions) indicate intense market activity, while lower levels suggest stabilization or consolidation.
• RSI Extremes: The script includes automated labels and shapes for RSI extremes (10 and 90) to highlight potential overextended price action.

Details

The script utilizes multiple ta.stoch and ta.sma calculations to create its layered momentum profile. By smoothing different lookback periods (ranging from immediate to long-term), it filters out minor price noise while keeping the trader informed of the broader trend. The ADX component uses standard Directional Movement Index (DMI) logic smoothed over a user-defined period to categorize trend strength into different color-coded zones. Furthermore, the volatility component uses standard deviation relative to a moving average of volume to pinpoint "Volatility Peaks."

Settings

Stochastic Periods

• Lookback Periods (1-4): Adjusts the historical window for each of the Stochastic RSI calculations.
• Smoothing M1/M2: Controls the primary and secondary Simple Moving Average (SMA) smoothing applied to the Stochastic values.

Volatility & ADX

• Standard Deviation Length: Sets the lookback for calculating relative volume volatility.
• Number of Deviations: Determines the threshold for identifying volatility peaks.
• DI Length: The lookback period for the Directional Indicators (+DI/-DI).
• ADX Smoothing: The smoothing period for the ADX line calculation.
• Exhaustion Level: The ADX value threshold (default 40) used to signify a potentially overextended trend.

Visualization

• Allow Negative Plots: Toggles whether the volatility area can display values below the baseline.
• Match Volume Color: When enabled, the volatility peaks will change color based on whether the candle closed up or down.

FAQ

How do I interpret the "Volatility Peaks"?

High peaks indicate periods where volume and price movement significantly deviate from the average, suggesting high-intensity trading. Green peaks usually signify bullish volatility, while red peaks signify bearish volatility.

What is the significance of the triple cross?

When the short, medium, and long-term Stochastic RSI lines converge and move in the same direction, it suggests a synchronization of momentum across multiple timeframes, which can indicate a high-conviction trend.

How can I access this tool?

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