entry zone after liquidity & RSI
TRANSLATION INTO ENGLISH: This Pine script on TradingView is designed to detect trading opportunities based on the Relative Strength Index (RSI) and candlestick patterns, while also incorporating a liquidity-related feature.
Here is an explanatory note to understand how the script works:
RSI (Relative Strength Index):
The script uses RSI to identify overbought and oversold levels. The default thresholds for buy and sell signals are set at 35 (buy) and 65 (sell). When RSI crosses these thresholds, "Buy" or "Sell" signals are generated and displayed on the chart as triangular shapes.
Candlestick Patterns:
The script detects various candlestick patterns, such as bullish/bearish engulfing, morning/evening star, bullish/bearish harami, etc. These patterns are displayed on the chart based on the conditions defined for RSI. For example, a "Bearish Engulfing" will be displayed above the bar when RSI is above the sell zone.
Liquidity Zone:
The script includes a liquidity feature that draws horizontal lines (pivots) on the chart to indicate high or low liquidity levels. These levels are determined based on market conditions, and the lines are updated dynamically as new pivots appear.
Liquidity Parameters:
plotLiq: Enables or disables the display of liquidity on the chart.
pvtTopColor and pvtBtmColor: Define the colors of the liquidity lines for high and low levels.
pvtStyle: Determines the style of the liquidity lines (solid, dashed, etc.).
pvtMax: Limits the maximum number of liquidity lines displayed on the chart.
Notes:
The script uses functions to detect candlestick patterns and liquidity pivots, making it modular and easy to understand.
Buy/sell signals and candlestick patterns are conditioned by RSI overbought/oversold levels, contributing to more precise decision-making.
Note: Be sure to test the script on historical data before using it in real trading, and adjust the parameters according to your needs.
Here is an explanatory note to understand how the script works:
RSI (Relative Strength Index):
The script uses RSI to identify overbought and oversold levels. The default thresholds for buy and sell signals are set at 35 (buy) and 65 (sell). When RSI crosses these thresholds, "Buy" or "Sell" signals are generated and displayed on the chart as triangular shapes.
Candlestick Patterns:
The script detects various candlestick patterns, such as bullish/bearish engulfing, morning/evening star, bullish/bearish harami, etc. These patterns are displayed on the chart based on the conditions defined for RSI. For example, a "Bearish Engulfing" will be displayed above the bar when RSI is above the sell zone.
Liquidity Zone:
The script includes a liquidity feature that draws horizontal lines (pivots) on the chart to indicate high or low liquidity levels. These levels are determined based on market conditions, and the lines are updated dynamically as new pivots appear.
Liquidity Parameters:
plotLiq: Enables or disables the display of liquidity on the chart.
pvtTopColor and pvtBtmColor: Define the colors of the liquidity lines for high and low levels.
pvtStyle: Determines the style of the liquidity lines (solid, dashed, etc.).
pvtMax: Limits the maximum number of liquidity lines displayed on the chart.
Notes:
The script uses functions to detect candlestick patterns and liquidity pivots, making it modular and easy to understand.
Buy/sell signals and candlestick patterns are conditioned by RSI overbought/oversold levels, contributing to more precise decision-making.
Note: Be sure to test the script on historical data before using it in real trading, and adjust the parameters according to your needs.
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.