This Pine Script strategy, titled "Harmony Signal Flow By Arun," uses the Relative Strength Index (RSI) indicator to generate buy and sell signals based on custom thresholds. The script incorporates stop-loss and target management and restricts new trades until the previous position closes. Here's a detailed description: Custom RSI Metric:
The strategy calculates a 5-period RSI based on the closing price, aiming for a more responsive measure of price momentum. RSI thresholds are defined: Lower threshold (30): Indicates oversold conditions, triggering a potential buy. Upper threshold (70): Indicates overbought conditions, prompting a possible sell. Entry Conditions:
Buy Signal: The strategy initiates a buy order when the RSI crosses above the lower threshold (30), indicating a shift from oversold conditions. Sell Signal: A sell order is triggered when the RSI crosses below the upper threshold (70), suggesting an overbought reversal. Only one order (buy or sell) can be active at a time, ensuring that a new trade begins only when there’s no existing position. Stop-Loss and Target Management:
For each trade, stop-loss and target conditions are applied to manage risk and secure profits. For Buy Positions: Stop-loss is set 100 points below the entry price. Target is set 150 points above the entry price. For Sell Positions: Stop-loss is set 100 points above the entry price. Target is 150 points below the entry price. The strategy closes the trade when either the stop-loss or target is met, marking the trade as "closed" and allowing a new trade entry. Trade Sequencing:
A new trade (buy or sell) is only permitted after the previous position hits either its stop-loss or target, preventing overlapping trades and ensuring clear trade sequences. This sequential approach enhances risk management by ensuring only one active position at any time. End-of-Day Closure:
All open positions are closed automatically at 3:25 PM (Indian market time) to avoid overnight exposure, ensuring the strategy remains strictly intraday. The flag for trade entry is reset at the end of each day, enabling fresh trades the next day. Chart Indicators:
The script plots buy and sell signals directly on the chart with visible labels. It also displays the custom RSI metric with horizontal lines for the lower and upper thresholds, providing visual cues for entry and exit points. Summary This strategy is a momentum-based intraday trading approach that uses the RSI for identifying potential reversals and manages trades through predefined stop-loss and target levels. By enforcing trade sequencing and closing positions at the end of the trading day, it prioritizes risk management and seeks to capitalize on short-term trends while avoiding overnight market risks.
진정한 TradingView 정신에 따라, 이 스크립트의 저자는 트레이더들이 이해하고 검증할 수 있도록 오픈 소스로 공개했습니다. 저자에게 박수를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 출판물에서 이 코드를 재사용하는 것은 하우스 룰에 의해 관리됩니다. 님은 즐겨찾기로 이 스크립트를 차트에서 쓸 수 있습니다.