RSI WVF Multi-Stage

vor 4 Stunden

RSI + WVF Confluence [Multi-Stage]

Overview
The RSI + WVF Confluence is a sophisticated reversal indicator that merges momentum analysis with market volatility. By combining a "hooking" Relative Strength Index (RSI) with a synthetic Williams VIX Fix (WVF), this tool identifies high-probability turning points where market "panic" meets a recovery in price action.

Unlike standard RSI indicators that fire signals based on a single threshold, this script uses a Multi-Stage Exhaustion System to categorize the depth of a reversal, helping traders distinguish between a minor bounce and a major market bottom.

How It Works
The indicator looks for a specific "Dual-Confirmation" setup:

• Volatility Peak (The WVF): The script detects when price has dropped significantly relative to recent highs, creating a "Fear Peak" (indicated by the gray background).
  
• Momentum Pivot (The RSI): It then waits for the RSI to "pivot" or curl upward, confirming that the downward pressure has exhausted and buyers are stepping back in.
  

The Multi-Stage Signal System
Signals are color-coded based on the severity of the oversold condition at the time of the pivot:

• 🟣 Magenta (Extreme): RSI below 15. A rare, high-conviction "blow-off" bottom.
  
  
• 🔴 Red (High): RSI between 15–20. Deep exhaustion usually seen in major corrections.
  
  
• 🟠 Orange (Moderate): RSI between 20–25. A strong, reliable reversal zone.
  
  
• 🟡 Gold (Standard): RSI between 25–30. The classic oversold bounce.
  
  
• 💎 Cyan (Early Warning): A tactical signal that fires during high-volatility spikes even if the RSI hasn't touched 30. Perfect for catching "V-Bottoms" and sharp pullbacks in strong uptrends.
  

Key Features

• Volatility Memory: Includes a "WVF Memory" lookback, ensuring signals are captured even if the momentum shift happens a few bars after the peak of market fear.
  
  
• ATR-Adjusted Labels: Arrows are mathematically positioned below the candles using Average True Range (ATR) to ensure a clean, overlap-free chart regardless of the asset's price.
  
  
• Modern Pine Script v6: Optimized for performance and high-speed calculation on any timeframe.
  

Trading Instructions
For Bottom Fishing: Look for Magenta or Red arrows. These indicate the market is severely overextended.

For Trend Following: Use the Cyan (Early Warning) arrows to buy the dip during a bull market when the RSI stays relatively high but volatility spikes briefly.

Confluence: The gray background indicates "Peak Fear." The best signals often occur when an arrow appears while the background is active or immediately after it fades.

vor 3 Stunden

Versionshinweise

Major Logic Updates & Improvements1. The 30.5 "Front-Run" FloorMarket algorithms often front-run the psychological 30.0 RSI level, causing price to reverse at 30.1 or 30.4.The Update: We have implemented a 30.5 Sensitivity Threshold. This ensures the indicator captures high-probability "near-miss" pivots that standard RSI strategies overlook.2. Fail-Safe Momentum OverruleIn previous versions, a volatility peak (WVF) was a strict requirement for every signal.The Update: The RSI engine now operates with a Fail-Safe Trigger. If the RSI hits $\le 30.5$ and hooks upward, a signal will fire regardless of volatility data. This ensures no standard oversold bounce is ever missed.3. Volatility Saturation (The Pressure Cooker)During intense market crashes, fear can remain at a peak for an extended period without a clean RSI "hook."Saturation Persistence: The script now tracks consecutive bars of peak fear. If the WVF remains active for 5+ bars, the system recognizes a Saturation State.Time-Based Exhaustion: In this state, the entry requirements are lowered. Even without a perfect RSI hook, the indicator identifies that the "spring" is loaded for a reversal.Visual Alert: The chart background turns Light Red during saturation, warning of a high-energy "Pressure Cooker" market state.4. Deep Trend & RSI Drag ProtectionIn a "slow bleed" downtrend, RSI can drag along the bottom for days.EMA Rubber-Band Filter: The script monitors the distance from the 50 EMA. If price is $>5\%$ below the EMA, it is flagged as a Deep Downtrend.Trend Capture: The indicator prioritizes mean-reversion in these states, catching the specific candle where the "rubber band" finally snaps back.The Multi-Stage Signal System (Revised)SignalIntensityTrigger Logic🟣 MagentaExtremeRSI $\le 15$. Historical "Blow-off" bottoms.🔴 RedHighRSI $\le 20$. Deep exhaustion typically seen in major corrections.🟠 OrangeModerateRSI $\le 25$. Reliable swing-reversal levels.🟡 GoldStandardRSI $\le 30.5$. The optimized "Front-Run" oversold bounce.💎 CyanEarly WarningTactical signal for volatility peaks when RSI is $>30.5$.Technical Release Notes (v6.0)Resolved wvf_ identifier error: Replaced with a robust sat_count variable for stable consecutive-bar tracking.ATR Global Extraction: ta.atr is now calculated in the global scope to ensure mathematical consistency and stable, overlap-free label positioning.Hybrid Volatility Trigger: Signals now react to both Relative Panic (WVF > Bollinger Band) and Absolute Panic (WVF > 30 Floor), providing sensitivity in all market regimes.Updated Trading InstructionsV-Bottoms: Watch for Cyan or Gold arrows against a Gray background.Exhaustion Bottoms: Watch for clusters of arrows against a Light Red (Saturated) background.The "No-Miss" Rule: If you see a Gold arrow without a gray background, it is a Pure Momentum play—the RSI has hit its limit and is ready to bounce.