This indicator combines the power of the Keltner channel with the power of the Relative Strength Indicator (RSI). It can help understand when the market is entering a bullish or a bearish trend.
Normally a Keltner channel would reference an Exponential Moving Average (EMA) of the price. In this case the Keltner Channel in the "Keltner + RSI Bitcoin Futures Trading [luca_badoer]" references the EMA of the 14-day RSI (white line). On top of that it overlays a 7-day RSI line (blue line). This produces some signals that are particularly useful in 2h, 4h and 1 day charts. The signals consist in the 7-day RSI line (blue line) crossing the upper (green) or lower (red) Keltner channels as well as the middle (white) line. Depending on the direction of the crossing (up or down) and the RSI level (from 0 to 100) at which the crossing takes place this produces bullish or bearish signals.
Examples:
- Bullish crossing: 7-day RSI (blue) crosses both the lower (red) and middle (white) lines upwards at a low to neutral RSI level (<70%)
- Bearish crossing: 7-day RSI (blue) cross both the upper (green) and middle (white) lines downwards at a high to neutral RSI (>30%)
Recommendations:
- Better to use it in 2h, 4h, and 1-day charts, thought it can also be used in lower timeframes. Confirmations of crossings in higher time-frames provide more certainty about the direction of the move.
- Use in combination with Heikin Ashi candles and volume indicators.
リリースノート
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- Changed "overlay" to false to display the indicator in a separate pane.
- Changed color of 7-day RSI line to light blue to please the eyes of those using dark mode.
リリースノート
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Added new horizontal lines representing fibonacci retracement levels (23.6, 38.2, 61.8, 78.6) as well as a horizontal line at 50. This lines can be used to understand short-term oversold and overbought levels which provide good long/short entry points. Generally speaking when the blue line crosses under or over one of top lines (23.6 or 78.6) that could be considered a good entry point.
@luca_badoer, I tried to mess with the 9-day EMA and noticed it doesn't add up. I have been digging some and in one article there is a screenshot showing an NMA (Dürschner Moving Average) in the MarginCall Indicator but i cannot figure out the two values being used for it. NMA appears to fit much better though. Just thought i'd let you know.
broekie
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Nice, thank you. How can I get your EMA 9 indicator following the candlesticks like that?
MeowCream
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@broekie, change the EMA 9 settings to the stepped line . Also change from candle stick chart to Heikin Ashi
raafal2007
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Thank you very much for Reddit post and finding and sharing solution.
Much appreciated.
Can this indicator be used to trade ether and other crypto?
luca_badoer
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@raafal2007, it can of course but always manage your risk accordingly. This is not a magic indicator.