OPEN-SOURCE SCRIPT
Statistical Option Trade Signal
Key Components:
RSI and Moving Averages:
This script uses RSI and a simple moving average (SMA) to generate bullish and bearish signals.
When RSI is oversold (below 30), and the price is above the 50-period moving average, it suggests a bullish signal (buy calls).
When RSI is overbought (above 70), and the price is below the moving average, it suggests a bearish signal (buy puts).
Signal Generation:
Signals are displayed on the chart as labels ("Buy Call" or "Buy Put").
Visual Indicators:
Background colors change based on the signals to indicate bullish or bearish sentiment.
How to Use This:
Technical Setup: This script is primarily focused on providing a technical signal for when to buy a call (bullish) or a put (bearish) based on price action and RSI.
Option Strategy: This script does not calculate options pricing directly but gives the direction in which you should consider placing an option trade.
RSI and Moving Averages:
This script uses RSI and a simple moving average (SMA) to generate bullish and bearish signals.
When RSI is oversold (below 30), and the price is above the 50-period moving average, it suggests a bullish signal (buy calls).
When RSI is overbought (above 70), and the price is below the moving average, it suggests a bearish signal (buy puts).
Signal Generation:
Signals are displayed on the chart as labels ("Buy Call" or "Buy Put").
Visual Indicators:
Background colors change based on the signals to indicate bullish or bearish sentiment.
How to Use This:
Technical Setup: This script is primarily focused on providing a technical signal for when to buy a call (bullish) or a put (bearish) based on price action and RSI.
Option Strategy: This script does not calculate options pricing directly but gives the direction in which you should consider placing an option trade.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.