Rangers
The Rangers algorithm determines trend direction with calculations based on the Relative Strength Index (RSI) technical indicator.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a momentum oscillator used to measure the speed and change of price movements. However, RSI does not directly measure trend direction and is often used with other indicators.
The RSI is calculated using the following formula:
RSI = 100 - [100 / (1 + RS)]
RS (Relative Strength) is the average gain over a specified period divided by the average loss.
The RSI value is then plotted on a scale of 0 to 100.
RSI above 70 suggests 'overbought' conditions and the potential for a price drop. RSI below 30 indicates 'oversold' conditions and the potential for a price rise
RSI Divergence
RSI Divergence is used to predict reversals in price.
Standard Divergence:
Bullish Divergence - when price hits new lows and RSI does not, it suggests a potential upward price reversal.
Bearish RSI Divergence - when price hits new highs and RSI does not, it suggests a potential downward price reversal.
Hidden Divergence:
Hidden Bullish Divergence - when price makes higher lows, but the RSI makes lower lows. It suggests the continuation of an uptrend.
Hidden Bearish Divergence - when price makes lower highs, but the RSI makes higher highs. It indicates the continuation of a downtrend.
Rangers Visualizer
RSI values, standard and hidden divergences, and divergence scores can be viewed in the Lendal Pro Trader: Rangers Visualizer.
Rangers Settings
RSI Source
Specifies the data source used for the RSI calculation.
Open - open price
High - highest price
Low - lowest price
Close - closing price
Hl2 - average of high + low price (H+L/2)
Hlc3 - average of high + low + close price (H+L+C/3)
Ohlc4 - average of open + high + low + close price (O+H+L+C/4)
Hlcc4 - average of high + low + double-weighted close (H+L+C+C/4
Vol - ETH: Volume - Ethereum volume
Vol - ETH: Volume MA - Ethereum volume moving average
Elements of other indicators loaded on the chart can also be set as a Source. This allows the use of Lendal Visualizers as Confluence factors.
Source is a Key Setting to consider during Strategy Optimization.
Higher Timeframe
Specifies the higher timeframe on which RSI is loaded. If a value other than ‘chart’ is set, this will override the Master Higher Timeframe setting in the Confirmation Control section.
The Higher Timeframe trailer analyzes macro trends over 1000 candles at the resolution of the current timeframe in TradingView. The maximum lookback period must be considered when selecting a Higher Timeframe. See the Higher Timeframe Limitations section for details.
Higher Timeframe is a Key Setting to consider during Strategy Optimization.
Divergence
Determines whether standard divergence, hidden divergence, or both are used to determine trend direction.
If Display Standard Bullish Divergence or Display Standard Bearish Divergence are activated in the Visualizations section, Divergence must be set to 'standard + hidden divergence' or 'hidden divergence' in order for these signals to appear in the chart.
If Display Hidden Bullish Divergence or Display Hidden Bearish Divergence are activated in the Visualisations section, Divergence must be set to 'standard + hidden divergence' or 'hidden divergence' in order for these signals to appear in the chart.
Divergence is a Key Setting to consider during Strategy Optimization.
Required RSI Score (Divergence)
This determines the minimum RSI score required for the algorithm to fire an alert. A higher RSI score indicates a stronger divergence. Increasing this value will reduce the frequency of signals but make them more reliable.
Required RSI Score (Divergence) is used exclusively by the Rangers algorithm. This is a Key Setting to consider during Strategy Optimization
Required RSI Score (Confluence)
This determines the minimum RSI score required for a divergence to act as a Confluence factor. Increasing this value will make Rangers confluence signals more reliable but less frequent.
Required RSI Score (Confluence) is used to trigger Take Profit signals. The minimum RSI Score required to trigger a signal can be specified in the Take Profit section.
Required RSI Score (Confluence) also acts as confluence when the RSI Confluence Trigger setting is activated within the Price Action (Bollinger) algorithm
Take Profit RSI Score (BULL)
Specifies the Required RSI Score (Divergence) value required for the system to end a bull trend and switch to a technical ranging condition. Note: this trend change will not be associated with a 'Take Profit' signal and is not linked to the Take Profit function. The Take Profit function is triggered by the Required RSI Score (Confluence) setting.
Take Profit RSI Score (BEAR)
Specifies the Required RSI Score (Divergence) value required for the system to end a bear trend and switch to a technical ranging condition. Note: this trend change will not be associated with a 'Take Profit' signal and is not linked to the Take Profit function. The Take Profit function is triggered by the Required RSI Score (Confluence) setting.
RSI Period
This determines the period over which RSI will be calculated. Increasing the period will reduce the frequency of signals but make them more reliable. Divergences over longer periods are stronger and less susceptible to volatility.
RSI Period is a Key Setting to consider during Strategy Optimization.
RSI Pivot Presets
Specifies a preset for the Pivot Right Strength and Pivot Left Strength strengths. Select ‘off’ to adjust pivot strengths manually.
Presets with higher values will reduce the frequency of signals but make them more reliable. Divergences over longer periods are stronger and less susceptible to volatility.
RSI Pivot Presets is a Key Setting to consider during Strategy Optimization.
Pivot Right Strength
This sets the number of candles to the right of a pivot on which the RSI will be calculated. Increasing this value increases the strength of the previous pivot. This results in less frequent but more reliable signals as divergences over longer periods are stronger and less susceptible to volatility.
Pivot Right Strength should always be more than Pivot Left Strength.
Pivot Left Strength
This is the number of candles to the left of a pivot on which the RSI will be calculated. Increasing this value increases the strength of the previous pivot. This results in less frequent but more reliable signals as divergences over longer periods are stronger and less susceptible to volatility.
Pivot Left Strength should always be less than Pivot Right Strength.
Conditional Period Begin
Sets the minimum lookback period in which an RSI divergence must be present for the algorithm to use it in calculations.
Conditional Periods End
This sets the maximum lookback period in which an RSI divergence must be present for the algorithm to use it in calculations.
Strategy
Specifies if Std. Deviation Period and Std. Deviation will be adjusted manually or set to a short, medium, or long-term preset.
Std. Deviation Period
Sets the number of lookback periods used to calculate RSI Std. Deviation.
Std. Deviation
Sets the standard deviation used when calculating RSI divergence. Generally, Std. Deviation (sd) should be increased as Std. Deviation Period (p) is increased. e.g. p = 10, sd = 1.9; p = 20, sd = 2; p = 50, sd = 2.1. However, these settings may not suit some assets.
Minimum Volatility
Specifies the minimum volatility required for Rangers to fire signals. Higher values will reduce the sensitivity of the algorithm to price fluctuations making signals less frequent, but more reliable. This may prove useful in choppy market conditions. Volatility detection based on the width of the Bollinger Band technical indicator can also be activated as a global function in the Volatility section. Global volatility detection operates independently of volatility settings within individual factions.
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