Higher Low / Higher Close with RSI Bias

The TtM - Higher Low / Higher Close with RSI Bias indicator identifies specific price action patterns filtered by Relative Strength Index (RSI) conditions to highlight potential momentum shifts and trend continuation points.

Usage

The indicator can be used to spot short-term reversals and trend strength by monitoring the relationship between price structure (highs and lows) and the RSI oscillator.

• Bullish Signals: Represented by upward triangles and green circles below or above bars. These occur when price shows strength (like a higher low and higher close) while the RSI is recovering from oversold territories or maintaining momentum.
• Bearish Signals: Represented by downward triangles and red circles. These often trigger when price shows exhaustion or fails to maintain higher highs while the RSI is in overbought territory or begins to trend downward.

Traders typically use these signals to confirm entries during pullbacks or to identify potential exhaustion points in overextended trends.

Details

The script evaluates price action using "Higher Low / Higher Close" logic combined with RSI lookbacks. It checks not only the current RSI value but also its relationship to previous values and specific overbought/oversold thresholds.

Key conditions include:

• Price Structure: Monitoring if the current low and close are higher than the previous bar.
• RSI Momentum: Comparing current RSI against its prior value to determine if momentum is increasing or decreasing.
• Lookback Logic: The script references price action up to three bars back to ensure the signal aligns with a broader immediate context.

Settings

• RSI Over Sold Reading: Sets the threshold for the oversold level (default is 30).
• RSI Over Bought Reading: Sets the threshold for the overbought level (default is 70).

FAQ

How do I use the TtM - Higher Low / Higher Close with RSI Bias?

You look for the plotted shapes on the chart. Upward triangles and green circles generally indicate bullish momentum, while downward triangles and red circles indicate bearish momentum or exhaustion.

What RSI period does this tool use?

The indicator uses a standard 14-period Relative Strength Index (RSI) for its internal calculations and bias detection.

How can I access this indicator?

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