This indicator looks for confluence among three indicators ( RSI , Stochastic , and MACD ), a strategy popularized by Markus Heitkoetter in his book, “The PowerX Strategy: How to Trade Stocks and Options in Only 15 Minutes a Day”, and expands it to look for agreement on up to four symbols.
Each indicator is configurable in the settings, as well as the ability to choose which of the indicators are used.
Default Logic
Green Candles
RSI > 50
Stochastic > 50
MACD Histogram > 0
Red Candles
RSI < 50
Stochastic < 50
MACD Histogram < 0
When multiple symbols are selected, the above needs to be true for all selected symbols.
//@version=4
study("Confluence Candles", overlay=true)
includeSymbol1 = input(true, "Include Symbol 1?", group = "Symbols")
useCurrentChartAsSymbol1 = input(true, "Use current chart's symbol as Symbol 1", group = "Symbols")
symbol1 = input("", "Symbol 1", group = "Symbols")
includeSymbol2 = input(false, "Include Symbol 2?", group = "Symbols")
symbol2 = input("", "Symbol 2", group = "Symbols")
includeSymbol3 = input(false, "Include Symbol 3?", group = "Symbols")
symbol3 = input("", "Symbol 3", group = "Symbols")
includeSymbol4 = input(false, "Include Symbol 4?", group = "Symbols")
symbol4 = input("", "Symbol 4", group = "Symbols")
// Kill Switch for if no instruments were selected
killSwitch = not includeSymbol1 and not includeSymbol2 and not includeSymbol3 and not includeSymbol4
includeRsi = input(true, "Include RSI", group = "RSI")
rsiLength = input(7, "RSI Length", group = "RSI")
rsiBullThreshold = input(50, "RSI Bull Threshold", group = "RSI")
rsiBearThreshold = input(50, "RSI Bear Threshold", group = "RSI")
includeStoch = input(true, "Include Stochastic", group = "Stochastic")
periodK = input(14, title="%K Length", minval=1, group = "Stochastic")
smoothK = input(1, title="%K Smoothing", minval=1, group = "Stochastic")
periodD = input(3, title="%D Smoothing", minval=1, group = "Stochastic")
useStochD = input(false, "Use Stochastic D instead of K", group = "Stochastic")
stochBullThreshold = input(50, "Stochastic Bull Threshold", group = "Stochastic")
stochBearThreshold = input(50, "Stochastic Bear Threshold", group = "Stochastic")
includeMacdHist = input(true, "Include MACD Histogram", group = "MACD")
macdFastLength = input(12, "MACD Fast Length", group = "MACD")
macdSlowLength = input(26, "MACD Slow Length", group = "MACD")
macdSignalLength = input(9, "MACD Signal Length", group = "MACD")
// Kill Switch for if no indicators are selected
confluenceKillSwitch = not includeMacdHist and not includeRsi and not includeStoch
stochastic(periodK, smoothK, periodD) =>
k = sma(stoch(close, high, low, periodK), smoothK)
d = sma(k, periodD)
output = useStochD ? d : k
confluence() =>
[_, _, histLine] = macd(close, macdFastLength, macdSlowLength, macdSignalLength)
rsiLine = rsi(close, rsiLength)
stochLine = stochastic(periodK, smoothK, periodD)
histBull = includeMacdHist ? histLine > 0 : true
histBear = includeMacdHist ? histLine <= 0 : true
rsiBull = includeRsi ? rsiLine > rsiBullThreshold : true
rsiBear = includeRsi ? rsiLine < rsiBearThreshold : true
stochBull = includeStoch ? stochLine > stochBullThreshold : true
stochBear = includeStoch ? stochLine < stochBearThreshold : true
signal = histBull and rsiBull and stochBull and not confluenceKillSwitch ? 1 : histBear and rsiBear and stochBear and not confluenceKillSwitch ? -1 : 0
confluenceSymbol1 = useCurrentChartAsSymbol1 ? confluence() : security(symbol1, "", confluence())
confluenceSymbol2 = security(symbol2, "", confluence())
confluenceSymbol3 = security(symbol3, "", confluence())
confluenceSymbol4 = security(symbol4, "", confluence())
symbol1BullFilter = includeSymbol1 ? confluenceSymbol1 == 1 : true
symbol1BearFilter = includeSymbol1 ? confluenceSymbol1 == -1 : true
symbol2BullFilter = includeSymbol2 ? confluenceSymbol2 == 1 : true
symbol2BearFilter = includeSymbol2 ? confluenceSymbol2 == -1 : true
symbol3BullFilter = includeSymbol3 ? confluenceSymbol3 == 1 : true
symbol3BearFilter = includeSymbol3 ? confluenceSymbol3 == -1 : true
symbol4BullFilter = includeSymbol4 ? confluenceSymbol4 == 1 : true
symbol4BearFilter = includeSymbol4 ? confluenceSymbol4 == -1 : true
bullish = symbol1BullFilter and symbol2BullFilter and symbol3BullFilter and symbol4BullFilter and not killSwitch
bearish = symbol1BearFilter and symbol2BearFilter and symbol3BearFilter and symbol4BearFilter and not killSwitch
barcolor(bullish ? #00FF00 : bearish ? #FF0000 : color.gray)
// Alerts
greenCandleAlerts = input(true, "Alerts for candle color changing to GREEN", group="Alerts")
redCandleAlerts = input(true, "Alerts for candle color changing to RED", group="Alerts")
grayCandleAlerts = input(true, "Alerts for candle color changing to GRAY", group="Alerts")
if (greenCandleAlerts and bullish and not bullish[1])
alert("Candle color changed to GREEN", alert.freq_once_per_bar_close)
if (redCandleAlerts and bearish and not bearish[1])
alert("Candle color changed to RED", alert.freq_once_per_bar_close)
if (grayCandleAlerts and not bullish and not bearish and (bullish[1] or bearish[1]))
alert("Candle color changed to GRAY", alert.freq_once_per_bar_close)
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