Hybrid: RSI + Breakout + Dashboard

The Hybrid: RSI + Breakout + Dashboard indicator is an adaptive trading system that dynamically switches between mean-reversion and momentum breakout strategies based on detected market regimes. It provides a comprehensive approach to navigating both ranging and trending markets by integrating RSI, ADX, and EMA filters into a single cohesive framework.

Usage

The script operates in two distinct modes determined by the Average Directional Index (ADX):

• Ranging Regime: When the ADX is below the specified threshold, the tool employs a mean-reversion strategy. It identifies oversold conditions (RSI < Buy Threshold) for long entries and overbought conditions (RSI > Sell Threshold) for short entries, provided the price aligns with the overall 200-EMA bias.
• Trending Regime: When the ADX exceeds the threshold, the tool switches to a momentum breakout strategy. It triggers entries when the price breaks above or below the recent high/low lookback period, ensuring trades are only taken in the direction of the dominant trend defined by the 200-EMA.

The dashboard displays real-time information regarding the current market regime (Trending vs. Ranging), the directional bias (Bullish vs. Bearish), and the most recent trade type executed.

Details

The script utilizes several technical layers to filter signals and manage risk:

• Regime Detection: Uses the DMI/ADX component to differentiate between sideways and trending price action.
• Trend Filtering: A 200-period Exponential Moving Average (EMA) acts as a global filter; long trades are only permitted when price is above the EMA, and short trades when price is below.
• Exit Logic: Mean-reversion trades are closed when the RSI returns to a neutral midpoint. Breakout trades utilize an ATR-based trailing stop to protect capital and lock in profits during extended moves.

Settings

ADX & Regime

• ADX Length: The lookback period for the ADX calculation.
• ADX Smoothing: The smoothing factor applied to the ADX.
• ADX Threshold: The level above which the market is considered "Trending".

EMA Trend Filter

• EMA Trend Filter: The period for the EMA used to determine bullish or bearish bias.

RSI Mean Reversion

• RSI Length: The lookback period for the RSI.
• RSI Buy Threshold: The level below which long entries are considered in ranging markets.
• RSI Sell Threshold: The level above which short entries are considered in ranging markets.
• RSI Exit Threshold: The RSI level used to close mean-reversion positions.

Breakout & ATR

• Breakout Lookback: The number of bars used to determine the highest high or lowest low for breakout entries.
• ATR Length: The period for the Average True Range calculation.
• ATR Trailing Multiplier: The multiplier applied to the ATR for setting trailing stop-loss distances.

FAQ

How do I access Hybrid: RSI + Breakout + Dashboard?

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

What markets is this script optimized for?

While it can be applied to various assets, it is specifically configured for high-liquidity markets like BTC, ETH, and SOL on timeframes ranging from 1 hour to 1 day.

Can I use this for automated alerts?

Yes, the script includes optimized alert conditions for RSI entries/exits and breakout entries, allowing you to sync the signals with external execution platforms.