OPEN-SOURCE SCRIPT
TP RSI
TP RSI - Integrated Trend, Momentum, and Volatility Analyzer
The TP RSI indicator is an innovative 3-in-1 technical analysis tool that combines RSI, Bollinger Bands, and an EMA ribbon to provide traders with a comprehensive view of trend, momentum, and volatility in a single, easy-to-interpret visual display.
Why This Combination? This mashup addresses three critical aspects of market analysis simultaneously:
By integrating these components, traders can make more informed decisions based on multiple factors without switching between different indicators.
How Components Work Together:
1. EMA Ribbon (Trend):
2. RSI (Momentum):
3. Bollinger Bands (Volatility):
Unique Aspects and Originality:
How these components work together:
The TP RSI indicator is an innovative 3-in-1 technical analysis tool that combines RSI, Bollinger Bands, and an EMA ribbon to provide traders with a comprehensive view of trend, momentum, and volatility in a single, easy-to-interpret visual display.
Why This Combination? This mashup addresses three critical aspects of market analysis simultaneously:
- Trend identification and strength (EMA ribbon)
- Momentum measurement (RSI)
- Volatility assessment (Bollinger Bands)
By integrating these components, traders can make more informed decisions based on multiple factors without switching between different indicators.
How Components Work Together:
1. EMA Ribbon (Trend):
- 10 EMAs form 5 color-coded bands
- Blue: Uptrend, Red: Downtrend
- Provides a nuanced view of trend strength and potential reversals
2. RSI (Momentum):
- Color-coded for quick interpretation
- Blue: Upward momentum, Red: Downward momentum, White: Neutral
- Position relative to the ribbon offers additional insight
3. Bollinger Bands (Volatility):
- Applied to RSI for dynamic overbought/oversold levels
- Narrow bands indicate low volatility, suggesting potential breakouts
Unique Aspects and Originality:
- Synergistic visual cues: Color coordination between ribbon and RSI
- Multi-factor confirmation: Requires alignment of trend, momentum, and volatility for strong signals
- Volatility-adjusted momentum: RSI interpreted within the context of Bollinger Bands
How these components work together:
- Buy Signal: Blue ribbon with blue RSI outside the ribbon.
- Sell Signal: Red ribbon with red RSI outside the ribbon.
- Neutral: White RSI or RSI inside the ribbon (not recommended for trading)
- Increasing Momentum: RSI crossing above upper Bollinger Band (upward) or below lower Band (downward).
- Trend Strength: RSI rejection by the ribbon, while all bands are colored along with the trend direction, identifies a strong trend.
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 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.