SuperTrend ATR + RSI with signal

The SuperTrend ATR + RSI with signal indicator is a versatile technical analysis tool that combines the volatility-based SuperTrend mechanism with RSI-derived bands to identify trend reversals and momentum shifts. This indicator serves as a comprehensive visual aid for traders seeking to capture long-term trends while filtering out noise through multi-layered signal logic.

Usage

The indicator can be used to identify potential entry and exit points based on the confluence of the SuperTrend line and RSI bands.

• Trend Identification: When the SuperTrend line is below the price and colored green, the market is considered to be in an uptrend. Conversely, when the line is above the price and colored red, a downtrend is indicated.
• Signal Logic: The indicator generates buy and sell arrows when a change in the SuperTrend direction occurs. These signals can be toggled on or off to clean up the chart.
• RSI Average: The blue line represents the average of the RSI-based bands, providing an additional layer of momentum context to confirm the SuperTrend signals.

Details

This script merges two popular technical concepts:

1. SuperTrend ATR: Calculated using an Average True Range (ATR) multiplier, it creates a trailing stop-loss level that stays constant or moves in the direction of the trend until a breach occurs.
2. RSI-Derived Levels: The indicator calculates upper and lower bounds based on Relative Strength Index (RSI) parameters, which are then averaged to provide a "RSI Average" line. This helps in gauging whether the current trend is supported by RSI momentum.

Settings

Main Settings

• Super Trend Factor: The multiplier used with the ATR to determine the distance of the SuperTrend line from the price.
• ATR Length: The lookback period used for the Average True Range calculation.
• RSI Length: The lookback period used for the RSI-based calculations.
• Show Trailing Stop Signals?: A toggle to display or hide the visual trend reversal arrows on the chart.

FAQ

How do I use the signals from this tool?

You can use the green and red arrows as potential signals for trend changes. A green arrow indicates a shift to a bullish trend, while a red arrow indicates a shift to a bearish trend.

What timeframes does this indicator work best on?

The indicator is designed to be adaptive; however, users are encouraged to adjust the Super Trend Factor and ATR Length to find the optimum balance between sensitivity and lag for their specific timeframe.

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.