Custom TABI Model with Layers

Custom Top and Bottom Indicator (TABI) (Is a Trend Adaptive Blow-Off Indicator) -
User Guide & Description
Introduction
The TABI (Trend Adaptive Blow-Off Indicator) is a refined, multi-layered RSI tool designed to enhance trend analysis, detect momentum shifts, and highlight overbought/oversold conditions with a more nuanced, color-coded approach. This indicator is useful for traders seeking to identify key reversal points, confirm trend strength, and filter trade setups more effectively than traditional RSI.

By incorporating volume-based confirmation and divergence detection, TABI aims to reduce false signals and improve trade timing.

How It Works
TABI builds on the Relative Strength Index (RSI) by introducing:

A smoothed RSI calculation for better trend readability.
11 color-coded RSI levels, allowing traders to visually distinguish weak, neutral, and extreme conditions.

Volume-based confirmation to detect high-conviction moves.
Bearish & Bullish Divergence Detection, inspired by Market Cipher methods, to spot potential reversals early.
Overbought & Oversold alerts, with optional candlestick color changes to highlight trade signals.
Key Features
✅ Color-Coded RSI for Better Readability

The RSI is divided into multi-layered color zones:
🔵 Light Blue: Extremely oversold
🟢 Lime Green: Mild oversold, potential trend reversal
🟡 Yellow & Orange: Neutral, momentum consolidation
🟠 Dark Orange: Caution, overbought conditions developing
🔴 Red: Extreme overbought, possible exhaustion

✅ Divergence Detection
Bearish Divergence: Price makes higher highs, RSI makes lower highs → Potential top signal
Bullish Divergence: Price makes lower lows, RSI makes higher lows → Potential bottom signal

✅ Volume Confirmation Filter
Requires a 50% above-average volume spike for strong buy/sell signals, reducing false breakouts.

✅ Dynamic Labels & Alerts
🚨 Blow-Off Top Warning: If RSI is overbought + volume spikes + divergence detected
🟢 Oversold Bottom Alert: If RSI is oversold + bullish divergence
Candlestick color changes when extreme conditions are met.

How to Use
📌 Entry & Exit Signals

Buy Consideration:

RSI enters Green Zone (oversold)
Bullish divergence detected
Volume confirms the move

Sell Consideration:

RSI enters Red Zone (overbought)
Bearish divergence detected
Volume confirms exhaustion
📌 Trend Confirmation

Use the yellow/orange levels to confirm strong trends before entering counter-trend trades.
📌 Filtering Trade Noise

The RSI smoothing helps reduce false whipsaws, making it easier to read true momentum shifts.
Customization Options
🔧 User-Defined RSI Thresholds

Adjust the overbought/oversold levels to match your trading style.
🔧 Divergence Sensitivity

Modify the lookback period to fine-tune divergence detection accuracy.
🔧 Volume Thresholds

Set custom volume multipliers to control confirmation requirements.
Why This is Unique
🔹 Unlike traditional RSI, TABI visually maps RSI zones into layered gradients, making it easy to spot momentum shifts.
🔹 The multi-layered color scheme adds an intuitive, heatmap-like effect to RSI, helping traders quickly gauge conditions.
🔹 Incorporates CCF-inspired divergence detection and volume filtering, making signals more robust.
🔹 Dynamic labeling system ensures clarity without cluttering the chart.

Alerts & Notifications
🔔 TradingView Alerts Included

🚨 Blow-Off Top Detected → RSI overbought + volume spike + bearish divergence.
🟢 Oversold Bottom Detected → RSI oversold + bullish divergence.
Set alerts to receive notifications without watching the charts 24/7.

Final Thoughts
TABI is designed to simplify RSI analysis, provide better trade signals, and improve decision-making. Whether you're day trading, swing trading, or long-term investing, this tool helps you navigate market conditions with confidence.

🔥 Use it to detect high-probability reversals, confirm trends, and improve trade entries/exits! 🚀