This chart overlay indicator can signal multiple triple-timeframe overbought and oversold confluences directly onto your chart, intended for use as a confluence either for reversal trade entries, or potential trade exits, indicating where price may be probable to reverse.
- Primary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time. Enabled by default.
- Secondary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time, with alert option. Enabled by default.
- Also includes standard configurable options, including k length, d length, length, length, etc.
- The default primary MTF #1 timeframes are set to 1minute, 5minute and 15minute. These are highly suitable for low timeframe scalpers trading on charts less than 5 minutes, and can often pin point price reversals.
- The default Secondary MTF #2 timeframes are set to 15minute, 30minute and 60minute. These are suitable for both low timeframe scalpers and considerably higher timeframe traders.
- Optional drawing of background colours and/or ribbon seen at bottom of the chart.
- Fully configurable timeframes, as well as overbought and oversold threshold levels for each individual timeframe. Overbought and oversold thresholds are set to the factory 80 and 20 levels respectively for all timeframes by default.
- Alert features for both MTF #1 and MTF #2 triple-timeframe confluences, including options for alerting overbought and oversold individually, as well as an option for alerting either overbought or oversold in a single alert.
Note: THe features listed above are accurate at the time of publishing but maybe updated or added to in future.
The popular oscillator has been described as follows:
“The is an indicator used in that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the oscillator formula to a set of ( ) values rather than to standard price data. Using values within the formula gives traders an idea of whether the current value is overbought or oversold. The oscillator was developed to take advantage of both momentum indicators in order to create a more sensitive indicator that is attuned to a specific security's historical performance rather than a generalized analysis of price change.”
How do traders use overbought and oversold levels in their trading?
The oversold level, that is when the is above the 80 level is typically interpreted as being 'overbought', and below the 20 level is typically considered 'oversold'. Traders will often use the at an overbought level as a confluence for entry into a short position, and the at an oversold level as a confluence for an entry into a long position. These levels do not mean that price will necessarily reverse at those levels in a reliable way, however. This is why this version of the employs the triple timeframe overbought and oversold confluence, in an attempt to add a more confluence and reliability to this usage of the .
This indicator was originally built as one of a many features included in the RF+ Divergence Scalping System and has been separated into it's own standalone indicator here for traders who do not want the many other features bundled into the original indicator. A number of features that exist in the original were intensive, and also quite niche. Therefore this lightweight single purpose chart overlay indicator offers this versatile feature of the ever popular to a wider audience of traders who may add it to various strategies.
- Corrected the current timeframe ribbon signals to print once, in MTF #1 colours, not twice.
- Relabeled the MTF #1 and MTF #2 ribbon options for greater clarity.
- Changed the default colours for the MTF #1 overbought and oversold signals, to distinguish them apart from the MTF #1 signals, and to match other indicators in range.
- Renamed variables, removed unused variables.
Dans le véritable esprit de TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par le règlement. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
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