The goal of this indicator, based on several technical analysis metrics, is to help investors quickly and efficiently visualize whether an asset appears to be in a buy or sell zone. It works in a simple way, with a color code and a score, as well as arrows giving signals.
Usage advice #
This indicator can be used on its own, ideally in daily or weekly timeframes, but it also works with other periods. With the « BRS Timeframe » setting, it is possible, for example, to see the BRS values and signals calculated on a daily basis while being on a weekly timeframe chart. Use your graph in logarithmic scale.
The zones and signals indicated by the BRS can be effectively coupled with a DCA strategy.
The Different Elements And Signals #
- A Moving Average (in white) constitutes the base of the indicator, around which several bands are formed. The lower bands (blue to green shades) form oversold areas. In these regions, it is recommended to buy rather than sell. Conversely, in the upper areas (yellow to red tones), represent overbought levels. It is then recommended to make sales.
To see at a glance in which zone we are currently located, we have added a panel with the score and the current signal.
The table below describes the different zones:
| Score | Signal |
|---|---|
| 0 | Deadcoin |
| 1 | Extremely Bullish |
| 2 | Strongly Bullish |
| 3 | Clearly Bullish |
| 4 | Bullish |
| 5 | Neutral + |
| 6 | Neutral – |
| 7 | Bearish |
| 8 | Clearly Bearish |
| 9 | Strongly Bearish |
| 10 | Extremely Bearish |
- In the panel there is also a strategy indication. This indication is coupled with the arrows (red, green and blue) that can be seen scattered across the chart.
- These arrows indicate when the asset is considered to be at an inflection point, a change in trend. Behind this is a mechanism that takes into account volatility , momentum and trend. The green arrows indicate buying opportunities and the red arrows indicate selling times. The blue arrows give indications with less confidence, they are weaker but more aggressive signals. The signal is to be taken up or down depending on the direction of the arrow.
- Finally, we give an indication of the market phase in which the asset is situated. Around the main line we consider to be in a phase of uncertainty, above in a bullmarket and below in a bearmarket.
Settings #
By opening the parameters of the indicator, it is possible to :
- Change the language of the indicator.
- Choose the position of the panel.
- Change the time unit in which the indicator is calculated, as explained above.
Panel information #
The indicator panel provides the following information:
- Score : From 0 to 10 (see table).
- Signal : See table.
- Strategy: Sell / Buy / Retest – Sell / Retest – Buy / Potential Retest – Sell / Potential Retest – Buy.
- Status: Bearmarket / Uncertainty / Bullmarket.
The color of the panel varies according to the zone in which the asset is located. This color is correlated to the indicator’s bands.
The panel color does not vary for this indicator.
Indicator link #
https://www.tradingview.com/script/kHMIMYpn-Blockunity-Rainbow-Score-BRS/
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