This script combines three powerful technical analysis tools – Bollinger Bands, MACD, and RSI – into a single indicator, designed to simplify the visualization of trends, divergences, and potential entry and exit signals in the market.
Key Features:
Bollinger Bands Colored by MACD:
The Bollinger Bands change color based on the relationship between the MACD and its signal line:
Green: Indicates an uptrend (MACD above the signal line).
Red: Indicates a downtrend (MACD below the signal line).
This approach helps to quickly identify market momentum within the band boundaries.
Dynamic EMA Colors:
EMA 21: The color changes based on the divergence between fast and slow RSI:
Green: When fast RSI is above slow RSI, signaling positive momentum.
Red: When fast RSI is below slow RSI, indicating potential weakness.
EMA 50: Always yellow, serving as a clear reference point.
EMA 200: Colored teal, acting as a long-term indicator for support or resistance.
Buy and Sell Signals:
Buy: Triggered when the MACD crosses above the signal line, and the price is near the lower band.
Sell: Triggered when the MACD crosses below the signal line, and the price is near the upper band.
These conditions help identify strategic moments to trade.
Customizable Alerts:
Configured to trigger notifications for buy or sell signals, enhancing operational efficiency.
Why Use This Indicator?
This script is designed for traders seeking to simplify their technical analysis without losing precision. It highlights key opportunities directly on the chart, optimizing decision-making processes. Whether you're a beginner or an experienced trader, this indicator offers a clear and reliable reading of market conditions.