ARAZ - Daily Buy/Sell Signal" Indicator This script is designed to provide buy (long) and sell (short) signals based on price and RSI divergence analysis using daily price data.
Features: Price and RSI Data: The script uses daily price data (open, high, low, close) and the 14-period Relative Strength Index (RSI). Pivot Point Detection: It calculates pivot highs and lows for both price and RSI over a 5-day period. Divergence Signals: Bullish Divergence (Buy Signal): A buy signal is triggered when the price makes a new low, but RSI is making higher lows (indicating a potential reversal to the upside). Additionally, RSI should be below 30 (oversold condition). Bearish Divergence (Sell Signal): A sell signal is triggered when the price makes a new high, but RSI is making lower highs (indicating a potential reversal to the downside). Additionally, RSI should be above 70 (overbought condition). RSI Reference Lines: The script draws reference lines for RSI at 30 (oversold), 50 (neutral), and 70 (overbought) to visually aid traders in identifying potential overbought and oversold conditions. Signals: Buy Signal (Bullish Divergence): A green triangle pointing upwards below the price bar. Sell Signal (Bearish Divergence): A red triangle pointing downwards above the price bar. RSI Indicator: The script also displays the RSI with dotted lines marking key levels (30, 50, and 70) on the chart.
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