Course Content
How To Create TA Indicators on TradingView
Without the right trading tools, you can’t conduct effective technical analysis. A strong trading strategy will help you avoid common mistakes, improve your risk management, and increase your ability to identify and take advantage of opportunities. For many, TradingView is the go-to charting platform. Offering a hub of technical analysis tools, the powerful HTML5 web application is used by millions to track movements in the Forex, cryptocurrency, and traditional stock markets. TradingView has many powerful features: it allows us to track assets across numerous trading platforms and to publish trading ideas within its social network. In this article, we’ll focus on its customizability. We’ll be using Pine Script, TradingView’s own programming language, which grants us granular control over our chart layouts. Let’s get started!
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How To Create TA Indicators on TradingView
About Lesson
The Relative Strength Index (RSI) is another essential indicator in technical analysis. It’s known as a momentum indicator, meaning that it measures the rate at which assets are bought and sold. Presented on a scale of 0 to 100, an RSI score attempts to inform investors on whether assets are overbought or oversold. Typically, an asset may be considered oversold if it has a score less than or equal to 30, and it could be overbought with a score greater or equal to 70.
If you head to New > RSI Strategy, you can see this for yourself. RSI is generally measured over periods of 14 (i.e., 14 hours or 14 days), but you’re free to tweak that setting to suit your own strategy.
Add this to the chart. You should see a few arrows displayed now (defined by the strategy.entry() function in the code). RsiLE indicates a potential opportunity to long the asset as it may be oversold. RsiSE highlights possible points at which to short the asset when it’s overbought. Note that, as with all indicators, you shouldn’t necessarily rely on these as foolproof evidence that prices will decrease/increase.
Exercise Files
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