Introduction
This is a 3 in 1 indicator, if used wisely could yield some good profits based on the strategy that will be detailed later.
The three indicators so combined are:
a) Moving averages - 3 Moving averages that could be customised to display SMAs and EMAs on the chart
b) Bollinger Bands
c) RSI
By default indicator is set to shown 21,55 & 100 EMAs, where 100 EMA is toggled off and is used on need base. The length and type of the moving average used can be changed based on user preference. 1st and 2nd moving average is color coded for easy identification of trend. Similarly Bollinger Bands and RSI setting too could be adjusted with the exception of the RSI signal displayed.
Following condition was set to reduce noise of RSI:
Signal will only be displayed if there is a Bullish or Bearish Engulfing candle that coincide with the overbought or oversold levels.
How to use
This method follows the known conditions that;
a) the price will return back to the to the Moving average like a magnate after a sudden change/divergence away from the MA
b) the price will return back to the median after breaching the Bollinger bands
c) there will be a reversal if the script is overbought or oversold
Look at the chart displayed to observe condition "a & b" and you will notice that the price always returns back to the moving average. If you time your entry correctly using trend analysis and with the help of stochastic RSI, you could profit from the price reversal.
Condition "c" is a simple add-on that is put up, to help alert you to the entry opportunity being presented. Signal from condition "c" is not absolute, it is only indicative and needs refinement, hence entry is subjective to your attention and analysis of mentioned conditions "a &b"