Three Golden

The Three Golden indicator provides a comprehensive trend-following solution by synchronizing Bollinger Bands, RSI, and MACD to identify high-probability trade setups through bar coloring and shape markers.

Usage

The Usage section focuses on interpreting the three primary color-coded signals generated by the indicator:

• Green Bar (Buy Signal): Occurs when the price is above the Bollinger Bands middle line, the RSI is above 50, and the MACD crosses above the zero line (or signal line, depending on settings). This indicates a strong confirmed uptrend.
• Red Bar (Sell Signal): Occurs when the price is below the Bollinger Bands middle line, the RSI is below 50, and the MACD crosses below the zero line (or signal line). This indicates a strong confirmed downtrend.
• Yellow/Neutral Bar: If conditions are mixed (e.g., price is above the midline but RSI is below 50), the bars remain neutral, suggesting a "wait and see" approach until all three golden rules align.

The indicator is optimized for the Daily time frame (D1) but can be adapted for other intervals by adjusting the internal settings.

Details

The script integrates several classic technical analysis tools into a single visual framework:

• Bollinger Bands: Used to determine the relative price position and trend baseline (middle line).
• Relative Strength Index (RSI): Acts as a momentum filter to ensure the trend has sufficient strength.
• MACD: Provides the final trigger for entry based on momentum crossovers.
• Exponential Moving Averages (EMA): The script includes EMA 20, 50, and 200 for additional trend context and dynamic support/resistance levels.

Settings

Main Settings

• BB Length Top: The period used for the main visual Bollinger Bands.
• StdDev Top: The standard deviation multiplier for the main visual Bollinger Bands.
• Condition MACD Cross 0: When enabled, the indicator uses MACD crosses of the zero line as the entry trigger.
• Condition MACD Cross Signal: When enabled, the indicator uses MACD crosses of the signal line as the entry trigger.

Indicator Inputs

• BB_length: The standard deviation multiplier for the calculation logic.
• BB_StdDev: The lookback period for the calculation logic Bollinger Bands.
• BB_RSI: The lookback period for the RSI calculation.
• Flast_MACD: The fast period for the MACD calculation.
• Slow_MACD: The slow period for the MACD calculation.
• Signal_MACD: The signal line smoothing period for the MACD.

FAQ

How do I use the three different colors?

Green bars represent a full bullish alignment, red bars represent a full bearish alignment, and yellow/default bars indicate market indecision where you should wait for better alignment.

Which MACD condition is recommended?

The default setting uses the Zero Line crossover, which is generally more conservative and suited for catching major trend shifts on higher timeframes like the Daily chart.

How can I access Three Golden?

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