PROTECTED SOURCE SCRIPT
RSI+MACD Confluence
This RSI+MACD Confluence indicator combines the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) into a single, easy-to-interpret overlay on the price chart.
This indicator uses color-coded bars to visualize the alignment of RSI and MACD conditions, helping to quickly assess market momentum and trend strength.
Key Features:
1. Customizable RSI Threshold:
Allows users to define the RSI level (default: 50) that signals bullish or bearish momentum.
2. MACD Trend Confirmation:
Compares the MACD line with its signal line to determine whether the trend is bullish (MACD line above signal line) or bearish.
3. Color-Coded Bars:
- Green: Strong bullish momentum (RSI above threshold and MACD line above signal line).
- Gray: Mixed signals (only one of the two conditions is met).
- Red: Bearish momentum (neither condition is met).
Potential Use Cases:
1. Trend Confirmation:
The indicator helps traders identify when both RSI and MACD align in the same direction, signaling stronger trend confidence.
2. Entry and Exit Signals:
- Entry: Look for green bars, indicating alignment in bullish momentum and trend direction.
- Exit or Avoid: Watch for red bars, which signal weakening momentum or bearish conditions.
3. Momentum Analysis:
- Gray bars provide a visual cue for indecision or transitioning phases, which can help identify potential turning points in the market.
4. Scalping and Swing Trading:
- Ideal for short-term traders looking for quick visual cues to confirm trade setups.
- Swing traders can use the indicator to stay in trades longer when green bars persist.
5. Visual Simplification:
- By integrating RSI and MACD conditions into a color-coded overlay, the indicator simplifies complex analysis and reduces the need to monitor separate RSI and MACD windows.
Benefits:
- Flexibility: Adjustable RSI threshold and MACD parameters allow traders to fine-tune the indicator for various markets and timeframes.
- Clarity: Simplifies the combination of momentum (RSI) and trend-following (MACD) tools into a single visual representation.
- Ease of Use: Suitable for traders of all experience levels, from beginners to advanced users.
This indicator is a versatile tool for spotting high-probability trading opportunities by combining two widely-used technical analysis metrics into a cohesive visualization.
This indicator uses color-coded bars to visualize the alignment of RSI and MACD conditions, helping to quickly assess market momentum and trend strength.
Key Features:
1. Customizable RSI Threshold:
Allows users to define the RSI level (default: 50) that signals bullish or bearish momentum.
2. MACD Trend Confirmation:
Compares the MACD line with its signal line to determine whether the trend is bullish (MACD line above signal line) or bearish.
3. Color-Coded Bars:
- Green: Strong bullish momentum (RSI above threshold and MACD line above signal line).
- Gray: Mixed signals (only one of the two conditions is met).
- Red: Bearish momentum (neither condition is met).
Potential Use Cases:
1. Trend Confirmation:
The indicator helps traders identify when both RSI and MACD align in the same direction, signaling stronger trend confidence.
2. Entry and Exit Signals:
- Entry: Look for green bars, indicating alignment in bullish momentum and trend direction.
- Exit or Avoid: Watch for red bars, which signal weakening momentum or bearish conditions.
3. Momentum Analysis:
- Gray bars provide a visual cue for indecision or transitioning phases, which can help identify potential turning points in the market.
4. Scalping and Swing Trading:
- Ideal for short-term traders looking for quick visual cues to confirm trade setups.
- Swing traders can use the indicator to stay in trades longer when green bars persist.
5. Visual Simplification:
- By integrating RSI and MACD conditions into a color-coded overlay, the indicator simplifies complex analysis and reduces the need to monitor separate RSI and MACD windows.
Benefits:
- Flexibility: Adjustable RSI threshold and MACD parameters allow traders to fine-tune the indicator for various markets and timeframes.
- Clarity: Simplifies the combination of momentum (RSI) and trend-following (MACD) tools into a single visual representation.
- Ease of Use: Suitable for traders of all experience levels, from beginners to advanced users.
This indicator is a versatile tool for spotting high-probability trading opportunities by combining two widely-used technical analysis metrics into a cohesive visualization.
Protected script
This script is published closed-source and you may privately use it freely.
Want to use this script on a chart?
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.