RSI_Crossing_50_plus_ATR_ver1.2_FXA0

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Author: Copyright � 2007, Adam J. Richter M.S.
RSI_Crossing_50_plus_ATR_ver1.2_FXA0

This technical indicator is designed to identify specific trend reversals and momentum shifts by analyzing the relationship between price volatility and relative strength. It provides visual cues on a trading chart to help users identify potential entry points, expansion signals, and exit zones.

Core Methodology

The logic operates primarily on two financial metrics:

  • Relative Strength Index (RSI): Used to determine the speed and change of price movements to identify overbought or oversold conditions, as well as momentum shifts across specific thresholds (30, 40, 50, 60, and 70).
  • Average True Range (ATR): Used to measure current market volatility. The script utilizes this to calculate dynamic price levels for potential targets and risk boundaries.

Trading Logic & Visual Signals

The indicator monitors the "crossings" of these metrics to generate three distinct types of visual markers:

1. Primary Trend Entries

The script looks for significant shifts in momentum when the RSI crosses the 50-level midpoint:

  • Bullish Entry: When the RSI moves from below 50 to above 50, a blue arrow appears. Simultaneously, the script clears previous markers and draws horizontal lines representing a potential "Long Entry" and a "Long Stop" based on a percentage of the daily volatility (ATR).
  • Bearish Entry: When the RSI moves from above 50 to below 50, a red arrow appears. It also clears previous markers and draws horizontal lines for a "Short Entry" and "Short Stop."

2. Position Expansion Signals

In addition to the primary entries, the script identifies secondary momentum signals to help traders gauge trend strength:

  • Bullish Additions: If the price is already in a bullish state (RSI above 50), it monitors for a cross of the 60-level to signal further upward momentum.
  • Bearish Additions: If the price is already in a bearish state (RSI below 50), it monitors for a cross of the 40-level to signal further downward momentum.

3. Exit Signals

To help manage risk and realize profits, the script identifies "exhaustion" points:

  • Bullish Exit: When the RSI drops from an overbought state (above 70) back below 70, a green checkmark/signal appears to suggest taking profits or closing a long position.
  • Bearish Exit: When the RSI rises from an oversold state (below 30) back above 30, a signal appears to suggest taking profits or closing a short position.

User Summary

For a trader, this tool acts as a visual roadmap. It highlights exactly where a trend might be starting (the arrows), where it might be gaining extra strength (expansion markers), and where the momentum is becoming exhausted (exit signals). By incorporating ATR-based lines, it also provides a structural reference for where to place stop-loss orders relative to current market volatility.

Price Data Components
Series array that contains the highest prices of each barSeries array that contains the lowest prices of each bar
Indicators Used
Relative strength indexIndicator of the average true range
Miscellaneous
Implements a curve of type %1
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RSI_Crossing_50_plus_ATR_ver1.2_FXA0 
//+------------------------------------------------------------------+
//|                                       FXA0 - RSI Crossing 50.mq4 |
//|                           Copyright © 2007, Adam J. Richter M.S. |
//|RSI_Crossing_50_plus_ATR_ver1.2_FXA0                              |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2007, Adam J. Richter M.S."
//Version 1.2 fixed 8 digit double to 4 digits and set to remove all objects in deinitialize 
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Blue
#property indicator_color2 Red
#property indicator_color3 Green

double dUpRsiBuffer[];
double dDownRsiBuffer[];
double dSellBuffer[];

extern double ATR_Percent = 0.15;  //This value sets the ATR Used, The ATR is 15%
extern double RSI_Period = 21;  //This value sets the RSI Period Used, The default is 21
extern double ATR_Period = 21;  //This value sets the ATR Period Used, The default is 21
 
int RowNum = 0;
int LastTrend = -1;
int UP_IND    = 1;
int DOWN_IND  = 0;
 
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
  {
//---- indicator buffers mapping  
    SetIndexBuffer(0,dUpRsiBuffer);
    SetIndexBuffer(1,dDownRsiBuffer);  
    SetIndexBuffer(2,dSellBuffer); 
//---- drawing settings
    SetIndexStyle(0,DRAW_ARROW);
    SetIndexArrow(0,233); //241 option for different arrow head
    SetIndexStyle(1,DRAW_ARROW);
    SetIndexArrow(1,234); //242 option for different arrow head
    SetIndexStyle(2,DRAW_ARROW);
    SetIndexArrow(2,252);  //251 x sign or 252 green check
    
//----
    SetIndexEmptyValue(0,0.0);
    SetIndexEmptyValue(1,0.0);
    SetIndexEmptyValue(2,0.0);
//---- name for DataWindow
    SetIndexLabel(0,"Rsi Buy");
    SetIndexLabel(1,"Rsi Sell");
    SetIndexLabel(2,"Exit");
//----


   return(0);
  }
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function                       |
//+------------------------------------------------------------------+
int deinit()
  {
//---- 
      ObjectsDeleteAll();
//----
   return(0);
  }
  
  
void printmyline(double vala, int topbottom) //print target line
{
   vala = NormalizeDouble(vala,4);
   if(topbottom==1)//target
   {
      ObjectCreate("theentry " + vala,OBJ_HLINE,0,0,vala);
      ObjectSet("theentry " + vala,OBJPROP_COLOR, Blue);
      ObjectSetText("theentry " + vala,"Long Entry",13,"Arial",Black);
   }
   if(topbottom==2)//stop
   {
      ObjectCreate("thestop " + vala,OBJ_HLINE,0,0,vala);
      ObjectSet("thestop " + vala,OBJPROP_COLOR, Blue);
      ObjectSetText("thestop " + vala,"Long Stop",13,"Arial",Black);
   }
}


void printmylinedown(double vala, int topbottom) //print target line
{
   vala = NormalizeDouble(vala,4);
   if(topbottom==1)//target
   {
      ObjectCreate("theentry " + vala,OBJ_HLINE,0,0,vala);
      ObjectSet("theentry " + vala,OBJPROP_COLOR, Red);
      ObjectSetText("theentry " + vala,"Short Entry",13,"Arial",Black);
   }
   if(topbottom==2)//stop
   {
      ObjectCreate("thestop " + vala,OBJ_HLINE,0,0,vala);
      ObjectSet("thestop " + vala,OBJPROP_COLOR, Red);
      ObjectSetText("thestop " + vala,"Short Stop",13,"Arial",Black);
   }
}
   
void deletealllines()
{
   ObjectsDeleteAll();
}

//+------------------------------------------------------------------+
//| Custom indicator iteration function                              |
//+------------------------------------------------------------------+
int start()
  {
   int nBars,nCountedBars;

    nCountedBars=IndicatorCounted(); //ncountedbars 655
//---- check for possible errors
    if(nCountedBars<0) return(-1);
//---- last counted bar will be recounted    
    if(nCountedBars<=2)
       nBars=Bars-nCountedBars-3;
    
    if(nCountedBars>2)
      {
       nCountedBars--;
       nBars=Bars-nCountedBars-1; //number of bars in current chart-655-1
      }
double lastRSI60arrow = NULL; //if going long
double lastRSI40arrow = NULL; //if going short
int lastCloseLong=0;
int lastCloseShort=0;

   for (int ii=Bars; ii>0; ii--)
   {

      dUpRsiBuffer[ii]=0;
      dDownRsiBuffer[ii]=0;

      double myRSInow = iRSI(NULL,0,RSI_Period,PRICE_CLOSE,ii);
      double myRSI2 = iRSI(NULL,0,RSI_Period,PRICE_CLOSE,ii+1); //RSI One bar ago
      double myATR1 = iATR(NULL,PERIOD_D1,ATR_Period,ii);

      
      if (myRSInow>=50) //is going long
      {
         if(myRSInow>50 && myRSI2<50) //did it cross from below 50
         {
            deletealllines();
            dUpRsiBuffer[ii] = Low[ii] - 2 * MarketInfo(Symbol(),MODE_POINT);
            printmyline((iHigh(NULL,0,ii+1)+(myATR1*ATR_Percent)),1);
            printmyline((iHigh(NULL,0,ii+1)+(myATR1*ATR_Percent))-(0.30*myATR1),2);
            lastRSI60arrow=0;
            lastCloseLong=0;
         }
         if(myRSInow>=60 && myRSI2<60) //add to position at cross of 60, sometimes this can occur twice
         {
               if(lastRSI60arrow>=60) //don't draw another arrow
               {
               }
               if(lastRSI60arrow<=60) //draw another arrow for adding to position
               {
                  dUpRsiBuffer[ii] = Low[ii] - 2 * MarketInfo(Symbol(),MODE_POINT);
                  lastRSI60arrow = myRSInow;
               }
         }
         
         if(myRSInow<70 && myRSI2>=70) //sell first lot
         {
            if(lastCloseLong==0)
            {
               dSellBuffer[ii] = High[ii] + 2 * MarketInfo(Symbol(),MODE_POINT);
               lastCloseLong=1;
            }
         }
      }
      
      if(myRSInow<50)  //is going short
      {
         if(myRSInow<50 && myRSI2>50) //did it cross from above 50
         {
            deletealllines();
            dDownRsiBuffer[ii] = High[ii] + 2 * MarketInfo(Symbol(),MODE_POINT);
            printmylinedown((iLow(NULL,0,ii+1)-(myATR1*ATR_Percent)),1);
            printmylinedown((iLow(NULL,0,ii+1)-(myATR1*ATR_Percent))+(0.30*myATR1),2);
            lastCloseShort=0;
            lastRSI40arrow=myRSInow; //set out of area
         }
         if(myRSInow<40 && myRSI2>40)
         {
            if(lastRSI40arrow<=40) //don't draw another arrow
            {
               
            }
            if(lastRSI40arrow>=40) //draw another arrow to add to position
            {
               dDownRsiBuffer[ii] = High[ii] + 2 * MarketInfo(Symbol(),MODE_POINT);
               lastRSI40arrow=myRSInow; 
            }     
         }
         if(myRSInow>30 && myRSI2<30)
         {
            if(lastCloseShort==0)
            {
               dSellBuffer[ii] = Low[ii] - 4 * MarketInfo(Symbol(),MODE_POINT);
               lastCloseShort=1;
            }
         }
      } 
         
 
 
   }
}

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