3x Supertrend and Stoch RSI

The 3x Supertrend and Stoch RSI indicator is a comprehensive trend-following tool that combines multiple timeframe trend analysis with momentum oscillators to identify high-probability entry points. By utilizing three distinct Supertrend calculations and a Stochastic RSI filter, it seeks to align entries with the prevailing market trend confirmed by an Exponential Moving Average (EMA).

Usage

The script identifies potential trend reversals and continuations by looking for confluence between its core components:

• Long Entries: Triggered when the current price is above the 200 EMA, at least two of the three Supertrends are bullish (green), and the Stochastic RSI performs a bullish crossover.
• Short Entries: Triggered when the current price is below the 200 EMA, at least two of the three Supertrends are bearish (red), and the Stochastic RSI performs a bearish crossunder.

Users can toggle "Stochastic Restrictions" to only permit signals when the Stochastic RSI is in oversold (for longs) or overbought (for shorts) territory, further filtering for potential exhaustion points. The script also includes built-in visual plotting for Take Profit and Stop Loss levels based on Average True Range (ATR).

Details

The indicator is based on a popular triple Supertrend strategy. It uses three variations of the Supertrend (Fast, Medium, and Slow) to gauge trend strength across different sensitivities. The addition of the EMA acts as a long-term trend filter, ensuring that trades are only taken in the direction of the macro trend. The Stochastic RSI serves as the momentum trigger, timing the entry within the established trend. The stop loss and take profit mechanisms are dynamically calculated using ATR to adapt to current market volatility.

Settings

Supertrend Settings

• Fast Supertrend ATR Length/Multiplier: Adjusts the sensitivity of the quickest trend line.
• Medium Supertrend ATR Length/Multiplier: Adjusts the sensitivity of the mid-range trend line.
• Slow Supertrend ATR Length/Multiplier: Adjusts the sensitivity of the slowest trend line.

Stochastic RSI Settings

• K/D/RSI/Stochastic Length: Parameters for the Stochastic RSI calculation.
• Restrict crosses to overbought/oversold territory: If enabled, signals only trigger when momentum is at extremes.
• Stochastic RSI Upper/Lower Band: Defines the levels for overbought and oversold conditions.

EMA Settings

• EMA Length: Sets the period for the trend filter (default is 200).

Position Exit Settings

• Stop Loss/Take Profit ATR Length: The period used to calculate volatility for exits.
• Stop Loss/Take Profit ATR Multiplier: Determines the distance of the exit levels from the entry price.

FAQ

How do I interpret the signals?

Signals are displayed as "Long" or "Short" labels on the chart. A signal appears when the EMA trend, Supertrend confluence, and Stochastic RSI momentum all align according to your settings.

Can I use this for automated trading?

Yes, the script includes alert hooks for Long/Short entries as well as Take Profit and Stop Loss hits, which can be connected to external execution services.

How do I access 3x Supertrend and Stoch RSI?

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