Relative Strength Index TOP and Bottom Circles with Alerts

The Relative Strength Index TOP and Bottom Circles with Alerts indicator identifies potential trend reversals by plotting visual cues on the price chart when the RSI enters and exits various overbought and oversold thresholds.

Usage

The indicator displays colored circles directly on the price chart to signal potential "Top" or "Bottom" exhaustion points.

• Bullish Signals (Green Circles): These appear below the price bar when the RSI crosses above oversold levels (30, 20, 15, or 10). The circles are numbered 1 through 4 to represent the depth of the oversold condition, with higher numbers indicating more extreme RSI values.
• Bearish Signals (Red Circles): These appear above the price bar when the RSI crosses below overbought levels (70, 80, 85, or 90). Similar to the bullish signals, these are numbered 1 through 4 to denote the intensity of the overbought state.

Users can utilize these signals to identify potential entry points for mean-reversion trades or to manage exits on existing positions.

Details

This tool is built upon the standard Relative Strength Index (RSI) logic but maps the oscillator's behavior directly onto the price chart for better visual context. By tracking multiple thresholds, it provides a tiered view of momentum exhaustion. The script includes a Moving Average (MA) calculation for the RSI internally, which can be configured to different types such as SMA, EMA, or Bollinger Bands, allowing for future expansion or manual confirmation of trend direction.

Settings

RSI Settings

• RSI Length: Determines the lookback period used to calculate the RSI.
• Source: Specifies the price data used for the RSI calculation (e.g., Close, Open, High, Low).

MA Settings

• MA Type: Allows users to choose the type of Moving Average applied to the RSI (SMA, Bollinger Bands, EMA, SMMA, WMA, or VWMA).
• MA Length: Sets the period for the selected Moving Average.
• BB StdDev: Adjusts the standard deviation multiplier if "Bollinger Bands" is selected as the MA type.

FAQ

How do I use the numerical labels on the circles?

The numbers (1-4) correspond to different RSI levels. For example, "1" for a short signal triggers at an RSI cross of 70, while "4" triggers at an extreme cross of 90. Higher numbers suggest a more extended overbought or oversold condition.

Can I set up notifications for these signals?

Yes, the indicator includes built-in alert conditions for each specific level (Long 1-4 and Short 1-4) as well as generic Bullish and Bearish alerts that trigger whenever any of the criteria are met.

How can I access the Relative Strength Index TOP and Bottom Circles with Alerts?

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