[blackcat] L1 Composite RSI Trend Oscillator

28 Sep 2020

Level: 1

Background

The Relative Strength Index (RSI) is a technical indicator for analyzing financial markets. It is intended to represent the current and historical strength or weakness of a trading pair or a market based on the closing prices of a last trading period.

Function

[blackcat] L1 Composite RSI Trend Oscillator utilizes candles to indicate trend. E.g. yellow candles for bull and fuchsia candles for bear. NOTE: it is inverted to RSI from bull bear perspective. Colorful RSI with yellow indicating bull and fuchsia indicating bear.

Key Signal

lwr1 --> trend oscillator fast line (lwr1 >= lwr2 for bear)
lwr2 --> trend oscillator slow line (lwr1 < lwr2 for bull)
botzone --> bottom zone indicates oversold with green
topzone --> top zone indicates overbought with red
longentry --> long entry signal
shortentry --> short entry signal


Pros and Cons

Pros:

1. combines both the benefit of RSI response and trend oscillator candles
2. divergence can be observed easily


Cons:

1. It may satruate for extreme conditions of long and short.
2. Not accurate for long and short entries and need filtering out noise and fake signal.


Remarks


NA


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

30 Sep 2020

Nota Keluaran

In order to obey the House Rule, remove the irrelevant MA Cross display.

24 Mac

Nota Keluaran

OVERVIEW

The [blackcat] L1 Composite RSI Trend Oscillator is an advanced technical analysis tool combining Relative Strength Index (RSI), weighted moving averages, and price momentum metrics to visualize market trends and generate actionable trading signals through dynamic threshold zones and crossover patterns.

FEATURES

• Dynamic threshold lines at key levels (80%, 20%, 10%, 90%) with gradient background fills
• Dual-colored candle-style trend oscillator bars showing short-term momentum direction
• Custom-weighted moving average (WMA)-filtered RSV values for smoother trend detection
• Adaptive RSI_ALMA line using Alma parameters optimized for volatility filtering
• Real-time entry signal zones marked by green/red colored areas
• Multi-layer visualization highlighting overbought/oversold extremes

HOW TO USE

Apply study to any time frame chart
Monitor RSI_ALMA crossing major thresholds (below 20 or above 80): • Yellow zone (above 80): potential sell pressure • Fuchsia/Yellow overlap zone: cautionary range • Green-filled area (below 20): possible buy interest
Look for crossover events between: ✓ EMA ratio line and smoothed RSV value → triggers trade signals ✓ Color transitions in oscillator candles → confirms trending strength
Combine with price action confirmation before executing trades

LIMITATIONS

• Requires parameter optimization for specific asset characteristics
• High sensitivity to lookback periods used in calculation windows
• Non-directional breakout signals may appear during ranging markets
• Best paired with additional filters for risk management purposes

NOTES
• Thresholds can be adjusted via hline arguments for personal strategies
• Smoothness of RS calculations improves accuracy but introduces lag
• Color coding system prioritizes visual pattern recognition clarity