Supertrend + Stochastic RSI

The Supertrend + Stochastic RSI indicator combines trend-following logic with momentum oscillators to generate high-probability trade entries for short-term and scalping strategies.

Usage

The indicator identifies potential entry points by filtering Stochastic RSI momentum crosses through the lens of the prevailing Supertrend direction. This dual-confirmation approach is designed to help traders stay on the right side of the market trend while capturing momentum shifts.

• Buy Signal: A green upward triangle appears below the price bar when the Stochastic RSI %K line crosses above the oversold level (default: 20) while the Supertrend indicates a bullish trend (price above the Supertrend line).
• Sell Signal: A red downward triangle appears above the price bar when the Stochastic RSI %K line crosses below the overbought level (default: 80) while the Supertrend indicates a bearish trend (price below the Supertrend line).

The tool is particularly effective on lower timeframes, such as the 1-minute to 15-minute charts, where identifying quick reversals within a larger trend is essential.

Details

The indicator relies on two core technical components:

1. Supertrend: Calculated using an Average True Range (ATR) period and a multiplier. It acts as a volatility-based trend filter. When the price is above the line, the trend is considered bullish; when below, it is bearish.
2. Stochastic RSI: This component applies the Stochastic formula to RSI values rather than price data, making it more sensitive to momentum changes.

To ensure signal reliability, the script uses values from the previous closed bar for signal generation, which helps prevent repainting issues during live trading.

Settings

• Supertrend Length: Sets the period used for the ATR calculation within the Supertrend.
• Supertrend Factor: The multiplier used to determine the distance of the Supertrend line from the price.
• Stochastic RSI Length: The period used for both the RSI and the subsequent Stochastic calculation.
• Overbought Level: The threshold (default: 80) used to trigger bearish momentum signals.
• Oversold Level: The threshold (default: 20) used to trigger bullish momentum signals.

FAQ

How do I access the Supertrend + Stochastic RSI?

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

Which timeframes are best for this indicator?

While it can be used on any timeframe, it is optimized for scalping and short-term trading on the 1m, 5m, and 15m charts.

Does this indicator repaint?

No, the signal logic is designed to trigger based on the conditions of the previous bar, ensuring that signals remain fixed once the current bar closes.