OPEN-SOURCE SCRIPT
The Jewel
The Jewel is a comprehensive momentum and trend-based indicator designed to give traders clear insights into potential market shifts. By integrating RSI, Stochastic, and optional ADX filters with an EMA-based trend filter, this script helps identify high-conviction entry and exit zones for multiple trading styles, from momentum-based breakouts to mean-reversion setups.
Features
Momentum Integration:
Leverages RSI and Stochastic crossovers for real-time momentum checks, reducing noise and highlighting potential turning points.
Optional ADX Filter:
Analyzes market strength; only triggers signals when volatility and directional movement suggest strong follow-through.
EMA Trend Filter:
Identifies broad market bias (bullish vs. bearish), helping traders focus on higher-probability setups by aligning with the prevailing trend.
Caution Alerts:
Flags potentially overbought or oversold conditions when both RSI and Stochastic reach extreme zones, cautioning traders to manage risk or tighten stops.
Customizable Parameters:
Fine-tune RSI, Stochastic, ADX, and EMA settings to accommodate various assets, timeframes, and trading preferences.
How to Use
Momentum Breakouts: Watch for RSI cross above a set threshold and Stochastic cross up, confirmed by ADX strength and alignment with the EMA filter for potential breakout entries.
Mean Reversion: Look for caution signals (RSI & Stoch extremes) as early warnings for trend slowdown or reversal opportunities.
Trend Continuation: In trending markets, rely on the EMA filter to stay aligned with the primary direction. Use momentum crosses (RSI/Stochastic) to time add-on entries or exits.
Important Notes
Happy Trading!
If you find this script valuable, please share your feedback, ideas, or enhancements. Collaboration fosters a more insightful trading experience for everyone.
Features
Momentum Integration:
Leverages RSI and Stochastic crossovers for real-time momentum checks, reducing noise and highlighting potential turning points.
Optional ADX Filter:
Analyzes market strength; only triggers signals when volatility and directional movement suggest strong follow-through.
EMA Trend Filter:
Identifies broad market bias (bullish vs. bearish), helping traders focus on higher-probability setups by aligning with the prevailing trend.
Caution Alerts:
Flags potentially overbought or oversold conditions when both RSI and Stochastic reach extreme zones, cautioning traders to manage risk or tighten stops.
Customizable Parameters:
Fine-tune RSI, Stochastic, ADX, and EMA settings to accommodate various assets, timeframes, and trading preferences.
How to Use
Momentum Breakouts: Watch for RSI cross above a set threshold and Stochastic cross up, confirmed by ADX strength and alignment with the EMA filter for potential breakout entries.
Mean Reversion: Look for caution signals (RSI & Stoch extremes) as early warnings for trend slowdown or reversal opportunities.
Trend Continuation: In trending markets, rely on the EMA filter to stay aligned with the primary direction. Use momentum crosses (RSI/Stochastic) to time add-on entries or exits.
Important Notes
- Non-Investment Advice
- No Warranty
- Collaborate & Share
Happy Trading!
If you find this script valuable, please share your feedback, ideas, or enhancements. Collaboration fosters a more insightful trading experience for everyone.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.