🟪Custom Clouds and RSI Bot
Last updated
Last updated
For those who prefer video tutorials, this breaks down every single aspect of the RT-Custom Clouds Indicator:
This tool initially started life out as a Custom Ichimoku Cloud Indicator. Over time we kept adding tools and additional functions. This write up will break each tool down one by one.
The top section focuses purely on the Ichimoku Indicator.
Reference: https://www.investopedia.com/terms/i/ichimoku-cloud.asp
For traders that prefer to only utilize the cloud, the Cloud Only (All Versions) Toggle allows the trader to one click enable/disable all aspects of the Ichimoku Cloud on/off.
Cloud Only (All Versions) - Toggles Ichimoku Tools On/Off except cloud.
Cloud Options/Styles
Josh Olszewicz Cloud (Preferred) - Doubled settings pioneered by - x.com/CarpeNoctom
Standard Cloud - Default Ichimoku settings.
Custom Cloud - User customizable Ichimoku option.
Custom Conversion Line Length - User editable.
Custom Base Line Length - User editable.
Custom Leading Span Length - User editable.
Custom Displacement - User editable.
RSI is one of the most powerful tools we have ever seen in back testing. The problem is that people cannot easily read all that RSI is trying to tell them. Traditional RSI Indicators look like this:
Realizing there was a gap of people overlooking the RSI Data, we colorized the data and placed it directly onto the Candles with different colored Xs.
While the Rainbow Trends original Color Code is utilized for the RSI Data, it has been inverted to allow for proper vacuolation of the data and prevent colors blurring together between the Candles and the Xs.
An example of what how these RSI X's print and show a trend reversal:
RSI "X" Marker Sensitivity - This setting can be adjusted to positive or negative numbers to adjsust the sensitivity at which the colored X's print.
RSI Length - Adjusts the number of candles that the RSI Data is calculated off of. Traditional RSI Indicators use 14 candles for their data.
RSI Markers On/Off - Allows the user to toggle the RSI X Markers on/off.
RSI TOP/Bottom Signals On/Off - Allows the user to Toggle the RSI Top/Bottom Bot Signals on/off.
RSI Overbought On/Off - Allows the user to turn On/Off the Overbought RSI X Markers.
RSI Oversold On/Off - Allows the user to turn On/Off the Oversold RSI X Markers.
Over time, Rainbow Theory traders asked for a way to automate the RSI Rotations that were routinely being traded. We added the RSI Top/Bottom Signal to this RSI Tool. In short, this RSI Bot waits for a sustained drive of RSI prints to begin and waits for this drive to stop. Once the Bot detects a candle that is printed with no RSI X Marker, it will trigger a RSI Top or RSI Bottom Signal.
RSI Signals can also be automated using the Alert Function in TradingView:
The Hull Moving Average and a moving average pioneered by one of the early Rainbow Theory Traders:
Blake - https://x.com/blaakke
Technical Reference of how HMA's are calculated: https://www.fidelity.com/learning-center/trading-investing/technical-analysis/technical-indicator-guide/hull-moving-average
Often times Rainbow Theory Traders use the Hull Moving Average 125 or 100 as a secondary confirmation of Trend Reversals. Below is an example of Costco ranging between multiple up and down trends.
When Rainbow Theory Traders are trading Bart Simpson setups, this is often used as a secondary confirmation that the trend is about to reverse and send back down.
HMA Cross Alerts
HMA Cross Alerts can be enabled as well to allow Traders to receive automated alerts when these events occur. These can be enabled/added to the chart per below:
To set the alert on your account, click add alert and utilize these settings:
HMA Divergences can also be added to the chart by enabling these settings. This allows the algos to look for HMA Divergences along the same lines that people look for RSI Divergences.
This was a feature requested by our users that we were glad to finally crack, automate and integrate into the Rainbow Trend Tool Suite. The source material explanation of Fibonacci Golden Pockets can be found here: https://www.coingecko.com/learn/what-is-golden-pocket-golden-ratio-trading
Manually drawing Fibbs and Golden Pockets can be time consuming so we spent about 6 months coding how to automate this process. This tool can be enabled and adjusted by these settings:
The time frame at which this tool looks back is controlled by the Lookback Period setting:
This will allow the Trader to fine tine the specific window size they would like the algo to study and look for Golden Pockets.
Some Traders prefer trading both traditional Golden Pockets and Inverted at the same time. To do this, add the Indicator onto the chart twice. One with traditional settings and one with inverted:
If you are still having issues or have questions, please feel free to reach out to us at admin@rainbow-trends.com or message us in the Rainbow Trends Discord.
