demon red Indicator

Indicator Overview

This indicator combines a modified RSI (Relative Strength Index) with Bollinger Bands to create a powerful trading tool. It applies a "super smoother" filter to the price data before calculating the RSI, then plots Bollinger Bands around the RSI values to identify overbought/oversold conditions and potential reversal points.

Key Features

Multiple RSI Types: Offers 6 different RSI calculation methods

Super Smoother Filter: Reduces noise in the price data before RSI calculation

Bollinger Bands: Plotted around the RSI to identify extremes

Trend Identification: Clearly shows trend direction with colored dots

Entry Signals: Provides arrow markers for potential entry points

Indicator Settings

RSI Parameters

RsiPeriod: The period for RSI calculation (default: 10)

RsiMethod: Type of RSI calculation (options: Regular, Slow, Rapid, Harris, RSX, Cuttler)

RsiPrice: Price type used for RSI calculation (close, open, high, low, etc.)

RsiSmoothing: Period for the super smoother filter (default: 20)

Bollinger Bands Parameters

BandsPeriod: Moving average period for the bands (default: 20)

BandsMaType: Type of moving average (SMA, EMA, SMMA, LWMA, TEMA)

BandsDeviation: Standard deviation multiplier (default: 1)

BandsRisk: Risk multiplier that expands/contracts the bands (default: 1)

Visual Settings

BBUpDotSize/DnDotSize: Size of the upper/lower band dots

BBUpDotColor/DnDotColor: Colors for the band dots

How to Use This Indicator

Trading Signals

Trend Identification:

Green dots below the RSI indicate an uptrend

Red dots above the RSI indicate a downtrend

Entry Signals:

Large green arrows mark potential buy entries when trend changes to up

Large red arrows mark potential sell entries when trend changes to down

Overbought/Oversold:

When RSI touches the upper band, the market may be overbought

When RSI touches the lower band, the market may be oversold

Recommended Strategy

For long positions: Wait for RSI to cross above the lower band with a green dot appearing

For short positions: Wait for RSI to cross below the upper band with a red dot appearing

Use the arrow signals as confirmation of trend changes

Indicator Philosophy

"Smooth the noise, see the trend - let the bands guide your hand."

This indicator is designed to filter out market noise while preserving important trend information. The combination of super smoothing with Bollinger Bands applied to RSI creates a clean, actionable view of market conditions.

Optimization Tips

For trending markets: Increase the RsiSmoothing period

For ranging markets: Decrease the BandsDeviation value

Experiment with different RSI types to match your trading style

Adjust the BandsRisk parameter based on your risk tolerance

The indicator works well on all timeframes but is particularly effective on H1 and higher charts for swing trading.