R4
The R4 indicator appears as a single oscillating line that moves between defined boundaries. It is designed to be intuitive, allowing you to gauge market sentiment at a single glance.
1. Understanding the Colors
The most immediate signal provided by R4 is its color-coded momentum line:
Dark Green: Indicates strong bullish momentum. The price is currently trading in the upper half of its recent range.
Bright Red: Indicates strong bearish momentum. The price is currently trading in the lower half of its recent range.
2. Identifying Overbought and Oversold Zones
R4 uses specific horizontal boundaries to help you identify when a move might be overextended:
Upper Boundary (88.6%): When the line reaches or exceeds this level, the market is in a "high-extension" zone. While the trend is strong, traders should look for signs of slowing momentum.
Lower Boundary (23.6%): When the line drops to or below this level, the market is deeply oversold. This often precedes a relief bounce or a trend reversal.
Center Line (0.5): This acts as the "equator." When the line crosses above 0.5, the bias shifts to bullish; when it drops below 0.5, the bias shifts to bearish.
3. Practical Trading Signals
Trend Confirmation: Use R4 to stay in a trade. If you are long and the line remains green and above the 0.5 center line, the trend remains intact.
Early Exit/Reversal: If the line is at the Upper Boundary (88.6%) and begins to turn red, it suggests that the buying pressure is fading, providing a signal to lock in profits.
Entry Triggers: A crossover from the lower oversold zone back above the 23.6% line—accompanied by a color change to green—can be a powerful entry signal for a new uptrend.
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Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact sunya directly.
Note that this private, invite-only script has not been reviewed by script moderators, and its compliance with House Rules is undetermined. TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.