RSI & DPO support/resistance

This indicator combines the Relative Strength Index (RSI) to identify overbought and oversold conditions with the Detrended Price Oscillator (DPO) to highlight support and resistance levels.

Unlike traditional indicators that display these metrics in a separate window, this tool integrates them directly onto the main price chart.
This allows for a more cohesive analysis, enabling traders to easily visualize the relationship between price movements and momentum indicators in one unified view.

How to Use It:

Identify Overbought and Oversold Conditions:
Look for RSI values above 70 to identify overbought conditions, suggesting a potential price reversal or pullback. Conversely, RSI values below 30 indicate oversold conditions, which may signal a potential price bounce or upward movement.

Analyze Support and Resistance Levels:
Observe the DPO lines on the main chart to identify key support and resistance levels. When the price approaches these levels, it can provide insights into potential price reversals or breakouts.

Combine Signals for Trading Decisions:
Use the RSI and DPO signals together to make informed trading decisions. For example, if the RSI indicates an overbought condition while the price is near a resistance level identified by the DPO, it may be a good opportunity to consider selling or taking profits.

Monitor Divergences:
Watch for divergences between the RSI and price movements. If the price is making new highs while the RSI is not, it could indicate weakening momentum and a potential reversal.

Set Alerts:
Consider setting alerts for when the RSI crosses above or below the overbought or oversold thresholds, or when the price approaches significant support or resistance levels indicated by the DPO.

Practice Risk Management:
Always use proper risk management techniques, such as setting stop-loss orders and position sizing, to protect your capital while trading based on these indicators.

By following these steps, traders can effectively utilize this indicator to enhance their market analysis and improve their trading strategies.