RSI Bands With RSI - ATR Trend Line

RSI Bands With RSI - ATR Trend Line (Smoothed Baseline)

Overview
A trend-following tool that fuses RSI-based regime detection with a smoothed baseline and ATR bands. Trend line aims to stay with the RSI move, cut random noise, and flip cleanly. The line draws green in bulls and red in bears; signals fire only on candle close confirmed flips.

Key Features

✅ Dynamic Trend Detection

RSI (>50 / <50) sets bullish/bearish regime

Smoothed baseline adapts to price while damping whipsaw

ATR-based bands expand/contract with volatility

✅ Precise Signal Generation

Buy when trend flips to bullish (close confirms above the upper band)

Sell when trend flips to bearish (close confirms below the lower band)

Flips require a real band break → fewer false transitions

✅ Visual Clarity

Green line = bullish trend, Red line = bearish trend

✅ Customizable Settings

RSI Length (default 14)

Baseline Smoothing (default 26)

ATR Length (default 14)

ATR Multiplier (default 1.4)

Toggles for Signals and Labels

✅ TradingView Alerts

Built-in Buy & Sell alerts (recommend Once per bar close)

How It Works

Algorithm Logic

RSI Regime: RSI above/below 50 sets bull/bear. At exactly 50, the prior target is carried forward.

Target & Smoothing: A per-bar target is built from the bar’s range and RSI, then smoothed with an EMA-style filter (Baseline Smoothing) to form the baseline.

ATR Bands: Upper/Lower = baseline ± (ATR × Multiplier).

Flip Rule (Supertrend-like):

Close above upper band → bullish flip; trend line tracks the lower band (green).

Close below lower band → bearish flip; trend line tracks the upper band (red).

Between bands → prior trend line persists.

Signals/Alerts: A flip event generates a Buy/Sell signal and alert.

Best Use Cases

Trending Markets – Built to ride sustained moves in either direction.
Multiple Timeframes – Works from intraday to higher TFs; higher TFs usually produce cleaner flips.
Various Asset Classes – Forex, Indices, Stocks, Crypto, Commodities; ATR adapts to volatility.

Recommended Settings

Conservative (Lower Frequency)

RSI 14–20 • Baseline 34 • ATR 14–21 • Multiplier 1.8–2.2

Use for swing/position trading; calmer signal stream.

Balanced (Default)

RSI 14 • Baseline 26 • ATR 14 • Multiplier 1.4

Good general-purpose setup for swing or active intraday.

Aggressive (Higher Frequency)

RSI 10–14 • Baseline 13–21 • ATR 10–14 • Multiplier 1.1–1.3

For scalping/day trading; earlier but noisier flips.

🎨 Visual Elements

RSI Smooth baseline (soft blue)

Upper/Lower ATR Bands (faint blue)

Trend Line (Bull/Bear) drawn only in the active regime (green/red)

Optional Buy/Sell arrows and labels

⚠️ Important Notes

Signals on Close

Flips confirm on bar close. Intrabar crosses can revert; wait for confirmation.

Risk Management

Size positions appropriately; many traders trail beyond the opposite band/line.

Factor in spread, slippage, sessions, and news.

Confirmation & Testing

Combine with structure/volume/HTF bias if desired.

Backtest and forward-test per instrument and timeframe.

For research/education only; not financial advice.