Stochastic RSI, RSI & MACD

The Stochastic RSI, RSI & MACD indicator provides a multi-layered momentum analysis by combining three popular oscillators to identify confluence-based bullish signals.

Usage

This tool is primarily used to identify strong trend-following entries by highlighting "Composite Signal" columns when specific momentum conditions align. A green highlight column appears when the following conditions are met:

• Stochastic RSI Confluence: The Fast Stochastic (%K) is greater than or equal to the Slow Stochastic (%D).
• RSI Threshold: Both the short-term (14-period) and long-term (250-period) Relative Strength Index are above the 50 neutral level.
• RSI Momentum: Both the short-term and long-term RSI values are currently higher than their previous values (increasing momentum).
• MACD Alignment: The MACD line is above the Signal line, indicating a bullish trend.

Traders can use the plotted oscillators (K and D lines for Stochastic RSI, and the two RSI lines) to observe individual momentum shifts, while the columns provide a synthesized signal for potential long entries.

Details

The script executes several technical calculations simultaneously to reduce noise and emphasize high-probability momentum shifts:

• Stochastic RSI: Calculated by applying the Stochastic formula to RSI values rather than price, helping identify overbought or oversold conditions within RSI movements.
• Dual RSI: By using both a standard 14-period and a long-term 250-period RSI, the script ensures that signals align with both immediate price action and the broader trend.
• MACD: Moving Average Convergence Divergence is included as a final trend filter to ensure the momentum has directional support.

Settings

Stochastic RSI

• Smooth K: Controls the smoothing of the %K line.
• Smooth D: Controls the smoothing of the %D line (Moving Average of K).
• RSI Length [SRSI]: The lookback period for the RSI used within the Stochastic calculation.
• Stochastic Length: The lookback period for the Stochastic calculation.
• RSI Source: The price input used for calculations (default is Close).

RSI

• RSI Length 1: The lookback period for the primary short-term RSI (default 14).
• RSI Length 2: The lookback period for the secondary long-term RSI (default 250).

FAQ

How do I interpret the green columns?

The green columns represent a "Composite Bullish Signal" where all conditions for Stochastic RSI, Dual RSI momentum, and MACD alignment are met simultaneously.

Can I use this for short signals?

The current implementation is optimized for identifying bullish momentum strength. Users would need to look for the absence of the signal or inverse crossovers for bearish interpretations.

How can I access this tool?

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