Combined RSI with SMA, ADX/DI, and Stochastic Indicator

How to Use and Apply the Indicator

This indicator combines the **RSI with SMA**, **ADX/DI**, and **Stochastic Oscillator**, providing multiple perspectives for technical analysis. Here's how you can use and apply it effectively:

1. **RSI with SMA (Relative Strength Index with Simple Moving Average)**

- **Purpose**: Measures momentum and identifies overbought or oversold levels.
- **Features**:
- **RSI (14-period)**: Tracks momentum.
- **SMA (20-period)**: Smooths the RSI for trend clarity.
- **Visual Enhancements**:
- Dashed lines at user-defined levels (default: 55 and 45).
- Highlighted zones: Above 55 (green), below 45 (red).
- Fill between RSI and SMA to indicate convergence/divergence.
- **Usage**:
- **Overbought/Oversold**: Look for RSI crossing above 70 (overbought) or below 30 (oversold).
- **Trend Strength**: If RSI stays consistently above 50 (bullish) or below 50 (bearish).
- **Divergence**: When RSI and SMA move apart, consider it a potential signal of trend change.


2. **ADX and DI (Average Directional Index with Directional Indicators)**

- **Purpose**: Measures trend strength and direction.
- **Features**:
- **ADX (14-period)**: Shows trend strength (higher values indicate stronger trends).
- **+DI and -DI**: Represent bullish and bearish directional movements.
- **Color Coding**:
- **Green**: Bullish trend.
- **Red**: Bearish trend.
- **Orange**: Weak/no trend (when ADX is below the "range" level).
- **Dynamic Fill**: Highlights areas based on whether +DI > -DI or vice versa.
- **Usage**:
- **Strong Trend**: When ADX > 30, trend is strong.
- **Bullish/Bearish Bias**: Compare +DI and -DI:
- **+DI > -DI**: Bullish bias.
- **-DI > +DI**: Bearish bias.
- **Caution Zone**: If ADX < 15, avoid trading as the market lacks direction.


### 3. **Stochastic Oscillator**

- **Purpose**: Identifies overbought and oversold conditions.
- **Features**:
- Tracks %K (fast line) and %D (signal line) for crossovers.
- Highlights overbought (>80) and oversold (<20) regions.
- Fills between %K and %D for easy visualization of crossovers.
- **Usage**:
- **Overbought/Oversold**: Look for price reversals when %K crosses %D in these regions.
- **Entry Signals**:
- Buy: %K crosses above %D in the oversold region (<20).
- Sell: %K crosses below %D in the overbought region (>80).
- **Confirm Trends**: Combine with ADX or RSI to validate signals.

General Application:

1. **Setup**: Add this script to your chart in TradingView.
2. **Interpretation**:
- Use **RSI with SMA** to identify momentum and potential trend reversals.
- Confirm trend strength and direction with **ADX/DI**.
- Refine entries/exits with **Stochastic Oscillator**.
3. **Alerts**:
- Enable alerts for buy/sell signals in ADX/DI to avoid missing key moves.
4. **Risk Management**:
- Avoid trading during low ADX periods (<15) as the market lacks direction.
- Combine signals with support/resistance levels or price patterns for better accuracy.

By integrating these indicators, this script allows for a comprehensive market analysis to enhance your decision-making.