RSI & RVI OB/OS Alert Arrow

The RSI & RVI OB/OS Alert Arrow indicator provides visual signals when both the Relative Strength Index (RSI) and the Relative Volatility Index (RVI) simultaneously reach overbought or oversold territories.

Usage

The indicator can be used to identify potential exhaustion points in price action by confirming momentum and volatility extremes at the same time.

• Overbought Signal: A red circle appears at the top of the indicator pane when both the RSI and RVI values exceed their respective overbought thresholds. This may suggest a potential bearish reversal or pullback.
• Oversold Signal: A green circle appears at the bottom of the indicator pane when both the RSI and RVI values fall below their respective oversold thresholds. This may suggest a potential bullish reversal or bounce.

By requiring both indicators to agree, the tool aims to filter out premature signals that might occur when using only a single momentum oscillator.

Details

The script calculates the RSI using the standard Relative Moving Average (RMA) of price changes. Simultaneously, it calculates the RVI, which measures the direction of volatility by comparing the Exponential Moving Average (EMA) of standard deviations during up-moves versus down-moves.

The core logic triggers a signal only when the "isOb" (Overbought) or "isOs" (Oversold) conditions are met for both calculations. This dual-verification approach ensures that price momentum (RSI) is accompanied by a corresponding volatility expansion (RVI) in the same direction.

Settings

• RSI Length: Sets the lookback period for the RSI calculation.
• RSI Overbought: Defines the upper threshold for the RSI (default is 80).
• RSI Oversold: Defines the lower threshold for the RSI (default is 20).
• RVI Length: Sets the lookback period for the standard deviation used in the RVI calculation.
• RVI Overbought: Defines the upper threshold for the RVI (default is 70).
• RVI Oversold: Defines the lower threshold for the RVI (default is 30).

FAQ

How do I interpret the signals?

Signals are displayed as colored circles in the indicator pane. A red circle at the top indicates a dual overbought condition, while a green circle at the bottom indicates a dual oversold condition.

Can I set up alerts for these signals?

Yes, the script includes built-in alert conditions for Overbought, Oversold, or a universal alert that triggers on either condition.

How can I access RSI & RVI OB/OS Alert Arrow?

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