"Top and bottom Hunter" indicator combines two popular technical analysis tools, Fibonacci retracement levels and the Relative Strength Index (RSI), to identify potential trading opportunities in the market.
Fibonacci retracement levels are based on the Fibonacci sequence, a mathematical series where each number is the sum of the two preceding ones. In trading, Fibonacci retracement levels are used to identify potential support and resistance levels based on the recent price action. The indicator uses two Fibonacci levels, fib_0 and fib_1, which are typically set to 0.382 and 0.618, respectively. These levels represent common retracement ratios.
To calculate the Fibonacci levels, the indicator considers the highest and lowest prices within a specified range, typically the highest and lowest of the last two bars. It calculates the fib_range, which is the difference between the highest and lowest prices. Then, fib_level_0 and fib_level_1 are determined by subtracting the Fibonacci ratios from the highest price.
The RSI is a momentum oscillator that measures the speed and change of price movements. It helps identify overbought and oversold conditions in the market. The RSI parameters used in this indicator are rsi_length (length of the RSI calculation), rsi_overbought (upper threshold indicating overbought conditions), and rsi_oversold (lower threshold indicating oversold conditions). The RSI value is calculated based on the closing prices.
The indicator generates buy and sell signals based on specific conditions:
Buy Condition: A buy signal is triggered when the RSI crosses above the oversold level (rsi_oversold) and the closing price is higher than fib_level_1. This indicates a potential reversal or bounce from the Fibonacci support level.
Sell Condition: A sell signal is triggered when the RSI crosses below the overbought level (rsi_overbought) and the closing price is lower than fib_level_0. This suggests a potential reversal or pullback from the Fibonacci resistance level.
In summary, this indicator combines the power of Fibonacci retracement levels and the RSI to identify potential trading opportunities. It helps traders find confluence between the Fibonacci support or resistance levels and the RSI readings, indicating potential trend reversals or bounces. Traders can use this information to make informed decisions about entering or exiting positions in the market.
Feel free to change the settings for what works best for you and use this with other confluences. I personally use RSI overbought and oversold values as 80 and 20
Hi Lars. I like what you did here. Actually seems to generate pretty damn good signals. I was wondering if you know how to set up alerts with this one. Whenever I try, I always have to choose 2 conditions, for example where XYZ crosses something.
I’m currently trying with conditions “top and bottom hunter” - plot And “top and bottom hunter” - Buy signal for example. But I can’t tell if that really works. Am I technically telling it that one of the green or red plots has to cross the buy signal label/symbol? Cause then it won’t trigger ever basically hehe. Maybe you know how it’s done properly?
(Edit: btw, the red and green line plots of course never cross either since it’s high and low fibs of the same measuring range. One reason why I can’t figure out how to do it)
brutaltraderyt
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@Afflux222, Hi Man, I am looking into it but alert don't seem to work, don't worry I will update it so you can simply set alerts on buy or sell plots.
Afflux222
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@larsealaxander, I believe I figured it out more or less. I noticed that buy and sell signal also showed on the values in the indicator’s status. 0 when no signal and 1 on candles with a signal. So if you click the 3 dots on the indicator and chose set alert, and then create the conditions: - top and bottom hunter - buy signal (or sell signal) - greater than - 0.9 - once per bar
Then it does work it seems. Altho I did experience several false alerts and figured that was simply because the conditions were both triggered temporarily on current candle and then price goes back within whatever the specific fib variables are, so the signal symbol itself is gone the next second. So I figure if you instead chose once per bar close, then it should work completely as intended. I haven’t tried it myself yet tho.
I like what you did here. Actually seems to generate pretty damn good signals. I was wondering if you know how to set up alerts with this one. Whenever I try, I always have to choose 2 conditions, for example where XYZ crosses something.
I’m currently trying with conditions “top and bottom hunter” - plot
And “top and bottom hunter” - Buy signal for example. But I can’t tell if that really works. Am I technically telling it that one of the green or red plots has to cross the buy signal label/symbol? Cause then it won’t trigger ever basically hehe.
Maybe you know how it’s done properly?
(Edit: btw, the red and green line plots of course never cross either since it’s high and low fibs of the same measuring range. One reason why I can’t figure out how to do it)