This indicator is designed to help traders identify potential shifts in market momentum by combining two popular technical analysis tools: the Relative Strength Index (RSI) and the Commodity Channel Index (CCI). Its primary goal is to spot "cross-over" moments where price momentum changes direction.
Core Logic Overview
The tool monitors the relationship between price movement and historical averages to determine if an asset is becoming overbought, oversold, or if a trend reversal is beginning. It operates using three main functional layers:
1. Momentum Monitoring (RSI) The script constantly calculates the RSI, which measures the speed and change of price movements. Specifically, it looks for "Cross-over" points at the 50-level mark:
- Bullish Signals: When the RSI moves from below 50 to above 50, it suggests that upward momentum is starting to take hold.
- Bearish Signals: When the RSI moves from above 50 to below 50, it suggests that downward pressure is increasing.
2. Trend Tracking (CCI) Simultaneously, the script tracks the CCI, which measures how far the current price is deviating from its average. While the RSI helps identify the strength of a move, the CCI provides context on the extent of the move relative to a specific period. The tool tracks the live value of these movements to visualize them on your chart window.
3. Automated Alert System To ensure traders don't have to watch the screen constantly, the script includes an automated notification system. It specifically watches for the CCI crossing the 100-level threshold:
- If the CCI drops below 100, it triggers a notification indicating a potential shift in trend.
- If the CCI rises above 100, it alerts the user to the upward movement.
How it appears on your chart
The script creates a separate window dedicated to these calculations. It visualizes the data through lines and specific markers (arrows). Instead of just providing raw numbers, it translates these mathematical shifts into visual cues, allowing you to see exactly where the "momentum" flips from one direction to another in real-time.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
/*
*********************************************************************
RSI with Trend Catcher signal
by Matsu
based on codes from various sources
*********************************************************************
*/
#property indicator_separate_window
#property indicator_buffers 6
#property indicator_color1 LightBlue
#property indicator_color2 LightBlue
#property indicator_color3 LightBlue
#property indicator_color4 Red
#property indicator_width4 2
#property indicator_color5 LimeGreen
#property indicator_width5 2
#property indicator_color6 Red
#property indicator_width6 2
#property indicator_level1 100
#property indicator_level3 -100
//#property indicator_level3 40
extern int CCIPeriod=14;
extern int RSIPeriod=14;
extern int BullLevel=100;
extern int BearLevel=-100;
extern bool AlertOn = true;
double rsi,rsib4;
double cci,ccib4;
double CCI[];
double DnCCI[];
double UpCCI[];
double NoCCI[];
double RSIdotup[];
double RSIdotdn[];
int init()
{
IndicatorBuffers(6);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,CCI);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,DnCCI);
SetIndexStyle(2,DRAW_LINE);
SetIndexBuffer(2,UpCCI);
SetIndexStyle(3,DRAW_LINE);
SetIndexBuffer(3,NoCCI);
SetIndexStyle(4,DRAW_ARROW,STYLE_SOLID,2);
SetIndexArrow(4,159);
SetIndexBuffer(4,RSIdotup);
SetIndexStyle(5,DRAW_ARROW,STYLE_SOLID,2);
SetIndexArrow(5,159);
SetIndexBuffer(5,RSIdotdn);
IndicatorShortName("CCI with RSI Crossing zero dot CCI Period=("+CCIPeriod+")");
return(0);
}
int start()
{
int counted_bars=IndicatorCounted();
int shift,limit,ob,os;
bool dn = false;
double BuyNow, BuyPrevious, SellNow, SellPrevious;
static datetime prevtime = 0;
if (counted_bars<0) return(-1);
if (counted_bars>0) counted_bars--;
// limit=Bars-31;
// if(counted_bars>=31) limit=Bars-counted_bars-1;
for (shift=500;shift>=0;shift--)
{
rsi=iRSI(NULL,0,RSIPeriod,0,shift);
rsib4=iRSI(NULL,0,RSIPeriod,0,shift+1);
cci=iCCI(Symbol(),Period(),CCIPeriod,PRICE_TYPICAL,shift); // no Im not dumb I had to do it this way
ccib4=iCCI(Symbol(),Period(),CCIPeriod,PRICE_TYPICAL,shift+1);
CCI[shift]=iCCI(Symbol(),Period(),CCIPeriod,PRICE_TYPICAL,shift);
// Alert (RSI[shift+1]);
if (rsib4<50 && rsi>50)
{
RSIdotup[shift]=0;
}
if (rsib4>50 && rsi<50)
{
RSIdotdn[shift]=0;
}
// ========= three-tone RSI
// if (dn==true)
// {
// if (CCI[shift]> BullLevel)
// {
// DnCCI[shift]=EMPTY_VALUE;
// NoCCI[shift]=EMPTY_VALUE;
// UpCCI[shift]=CCI[shift];
// }
// if (CCI[shift]<BearLevel)
// {
// DnCCI[shift]=CCI[shift];
// NoCCI[shift]=EMPTY_VALUE;
// UpCCI[shift]=EMPTY_VALUE;
// }
}
// }
// ======= Alert =========
if(AlertOn)
{
if(prevtime == Time[0])
{
return(0);
}
prevtime = Time[0];
if (cci<100 && ccib4> 100) Alert(Symbol()," ",Period(),"m ","CCI above 100");
if (cci>100 && ccib4< 100) Alert(Symbol()," ",Period(),"m ","CCI below 100");
}
// ======= Alert Ends =========
return(0);
}
Comments