The main basis of the indicator is as follows:
To buy, the indicator is waiting for the instrument to be oversold from the point of view. Then, if the chart crosses the bottom line of the indicator from the bottom to the top, a buy signal is issued.
For sell, the indicator waits for the instrument to be overbought from the perspective. Then, if the chart crosses the top line of the indicator from top to bottom, a sell signal is issued.
The general basis is the consonance of the price and the indicator.
The best settings I came up with myself:
- Time frame: 15 minutes
- Overbought: 80
- Oversell: 25
- Length: 8
- It can be done on different instruments. But always set your profit and loss limits.
Disclaimer: This information and trading indicators and tools provided neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
I am not liable for any profit, financial improvement, losses or damages, monetary or other that may result from the application of information contained within this indicator. Individual traders must use their own due diligence in analyzing featured trading indicators, other trading tools, webinars and other educational materials to determine if they represent suitable and useable features and capabilities for the individual trader.
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.