RSI-Stochastic Hybrid — Indicator by blindfreddy

trend momentum stochastic relativestrengthindex

This is a very simple idea - an average of RSI and the Stochastic Oscillator. However it offers plenty of flexibility for tuning to your requirements. You can change the lengths of either indicator and the weighting of each. By default it's set to 50/50 (just change the percent RSI to adjust). There is also an optional EMA which can be used as a signal line.
This idea comes from Greg Morris who likes to use it for trend following. I would buy when the indicator hits the overbought line and sell when it goes below 50.

Open-source script

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.

Disclaimer

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Want to use this script on a chart?

//Scripted by Blind Freddy
//See my blog at http://blindfreddy.postagon.com for learning and picks
//Hybrid RSI-Stochastic Indicator, with optional EMA line
study(title="RSI-Stoch Hybrid", shorttitle="RSI-Stoch", overlay=false)
len = input(14, minval=1, title="RSI Length")
lenstoch = input(26, minval=1, title="Stochastic Length")
thepercent = input(50, minval=0, maxval = 100, title="Percent RSI")
len2 = input(5, minval=1, title="EMA (Signal) Length")
thersi= rsi(close,len)
thestoch=stoch(close,high,low,lenstoch)
thehybrid=thersi*thepercent/100 + thestoch*(100-thepercent)/100
theEMA = ema(thehybrid,len2)
plot(thehybrid, title="RSI-Stoch Hybrid", style=line, linewidth=2, color=teal)
plot(theEMA, title="EMA", style=line, linewidth=2, color=gray)
band2 = hline(80, title="Upper Line", linestyle=dashed, linewidth=1)
band1 = hline(50, title="Upper Line", linestyle=dashed, linewidth=1)
band0 = hline(20, title="Lower Line", linestyle=dashed, linewidth=1)
fill(band2, band0, color=blue, transp=90)