Stochastics and RSI Hybrid — Indicator by ForexResearchLabs

bollingerbands stochasticrsi relativestrengthindex

This is an interesting study. We know bollinger bands can be a useful tool for price action, but what if we applied them to other indicators?

The top chart is the Stochastics and bottom chart represents RSI. We can see a relationship between the two indicators, where the signal line bounces of the bollinger bands.

The strategy is simple, when the signal lines bounce of their bollinger bands together, review price action and then take the trade. If you see one indicator going in the opposite direction to the other, or opposite to price action, then you may be observing divergence in which case a big move is about to happen.

If you wish to have this indicator further customised, please do not hesitate to contact me.

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

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?