Double RSI Trend

The Double RSI Trend indicator aims to identify potential trend reversals by combining the Supertrend indicator with a dual Relative Strength Index (RSI) crossover mechanism.

Usage

The indicator can be used to spot trend shifts through "Buy" and "Sell" labels on the chart. A "Buy" signal is generated when the Supertrend switches to a bullish state and is accompanied by a short-term RSI crossing above a long-term RSI. Conversely, a "Sell" signal is generated when the Supertrend switches to a bearish state and is accompanied by the short-term RSI crossing below the long-term RSI.

Users can use the "Crossing" settings to adjust the sensitivity of the signal timing. By allowing the RSI crossover to occur up to two candles before the Supertrend flip, the tool provides flexibility in capturing momentum that precedes price action confirmations.

Details

The script integrates two distinct technical analysis concepts:

• Supertrend: Utilizes ATR and a multiplier to determine the prevailing trend direction.
• Dual RSI: Employs a short-period RSI (default 25) and a long-period RSI (default 100). The crossover of these two lines acts as a momentum filter for the Supertrend signals.

By requiring both a trend confirmation (Supertrend) and a momentum shift (RSI crossover), the script filters out weak signals that might occur in sideways markets.

Settings

• ATR Length: The period used for the Average True Range calculation within the Supertrend component.
• Factor: The multiplier applied to the ATR to determine the Supertrend distance from price.
• RSI Source: The price source (e.g., Close, Open) used for the RSI calculations.
• Short RSI Period: The lookback period for the faster RSI.
• Long RSI Period: The lookback period for the slower RSI.
• Crossing on the same candle: If enabled, signals fire when the RSI cross and Supertrend flip occur on the same bar.
• Crossing on the one candle before: If enabled, signals fire if the RSI cross occurred exactly one bar before the Supertrend flip.
• Crossing on the two candle before: If enabled, signals fire if the RSI cross occurred exactly two bars before the Supertrend flip.

FAQ

How do I interpret the Buy and Sell labels?

Labels appear when the Supertrend changes direction and is confirmed by a recent or simultaneous RSI crossover. Green labels indicate bullish momentum, while red labels indicate bearish momentum.

Can I use this for scalping?

Yes, by adjusting the ATR Length and RSI periods to lower values, the indicator can be tuned for shorter timeframes, though users should be mindful of market noise.

How do I access Double RSI Trend?

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