POINT and Shoot

The POINT and Shoot indicator tool provides a comprehensive technical analysis suite focused on RSI-based trend detection and automated trend line visualization. By combining custom RSI calculations with dynamic pivot point detection, it identifies and projects trend lines that help traders spot potential breakout or reversal opportunities in a non-overlay environment.

Usage

The Usage section highlights the indicator's primary functions in identifying market structure through the RSI oscillator.

• RSI & WMA Interaction: The main oscillator changes color (green/red) based on its position relative to a Weighted Moving Average (WMA). This serves as a primary trend filter, where RSI above the WMA suggests bullish momentum.
• Trend Line Projection: The script automatically connects pivot highs and lows on the RSI to draw trend lines. These lines can be set to extend indefinitely or show as broken lines when price action violates them.
• Pivot Identification: Pivot points are labeled with "H" and "L" to clearly mark local peaks and troughs within the oscillator, assisting in the manual identification of divergence or chart patterns.
• Overbought/Oversold Reference: Horizontal reference levels at 40 and 60 provide a shaded zone to visualize the "neutral" range of the RSI.

Details

The script utilizes a lookback period of up to 4000 bars to maintain and manage trend line integrity. It uses ta.pivothigh and ta.pivotlow over a defined period (PRD) to identify significant turning points.

A custom linear interpolation logic is applied to validate trend lines: the script checks every bar between two pivots to ensure price has not violated the trend before drawing it. If a trend line is invalidated by subsequent price action, the "Show Broken Trend Lines" feature can display these as dotted lines, which often act as historical support or resistance levels.

Settings

• Source: Determines the input price used for the RSI calculation (default is close).
• RSI Length: Adjusts the sensitivity of the RSI oscillator.
• Line Style: Allows users to choose between Solid or Dashed styles for active trend lines.
• Line Width: Sets the thickness of the plotted trend lines (1-4).
• Show Broken Trend Lines: Enables the display of historical trend lines that have been breached.
• Extend Lines: When enabled, projects active trend lines into the future.
• Show Pivot Points: Toggles the "H" and "L" labels on the chart.
• Show WMA Line: Toggles the visibility of the signal WMA line used for RSI coloring.
• WMA Length: Sets the period for the signal smoothing line.

FAQ

How do I interpret the colored RSI line? A green line indicates the RSI is trading above its WMA (bullish bias), while a red line indicates it is trading below its WMA (bearish bias).

What do the dotted lines represent? Dotted lines represent "Broken Trend Lines"—these are trend lines that were originally valid but have since been crossed by price action.

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.