This strategy combines the use of (12, 26, 9), (14, 30, 70), and RVOL (14) to create Long Buy and Sell signals. This works well with many different time intervals but was developed with 15-minute intervals in mind.
Using as a reference, the strategy identifies when the line crosses over (a factor in a buy signal) and under (a factor in a Sell signal) the Signal line. This shows a shift in positive (cross over) and negative (cross under) of a security.
Using the ( ) as an indicator, the strategy notices when the velocity and magnitude of the directional price movements cross over the Oversold signal (30) and crosses under the Overbought signal (70) as a factor in creating a Buy and Sell signal.
Using Relative (RVOL) as an indicator, the strategy calculates when the current has crossed over the 2x average indicator over a given period and is then used as a factor in creating a Buy signal. RVOL is also used when the change in crosses under a set RVOL number (in this strategy, it is set to a RVOL of 5).
RVOL = Current / Average over a certain period
This strategy indicates a Buy signal when 2/3 conditions are met:
- Cross Over the Over Sold signal (default 30)
- Cross Over of Signal ( > Signal)
- RVOL Cross Over of 2 (RVOL > 2)
This strategy indicates a Sell signal when 2/3 conditions are met:
- Cross Under the Over Bought signal (default 70)
- Cross Under of Signal ( < Signal)
- RVOL Cross Under 5 (RVOL < 5)
Enjoy and leave feedback!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.