trading dca
How to avoid buying when everyone is buying? This indicator, combined with the classic RSI27 (35-70) / hhll on 33 minutes, will allow you to see the real FOMO (fear of missing out) zones where everyone will buy.
Rebroadcast of my intervention on DCA trading
// This Pine Script® code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © jeromehorus
//@version=6
//@version=5
indicator("FOMO/FUD Detector", overlay=true)
// Parameters
smaLength = input(200, "SMA Period")
deviationFomo = input(8.0, "FOMO Deviation (%)") / 100
deviationFud = input(8.0, "FUD Deviation (%)") / 100
volumeSpikeMultiplier = input(5.0, "Volume Multiplier (FOMO)")
volumePanicMultiplier = input(3.0, "Volume Multiplier (FUD)")
// Calculations
sma = ta.sma(close, smaLength)
rsi = ta.rsi(close, 14)
volumeMa = ta.sma(volume, 20)
// FOMO Conditions
priceAboveSma = close > sma * (1 + deviationFomo)
volumeSpike = volume > volumeMa * volumeSpikeMultiplier
rsiOverbought = rsi > 70 and rsi < rsi[1] and close > close[1]
fomoSignal = priceAboveSma or volumeSpike or rsiOverbought
// FUD Conditions
priceBelowSma = close < sma * (1 - deviationFud)
volumePanic = volume > volumeMa * volumePanicMultiplier and rsi < 30
fudSignal = priceBelowSma or volumePanic
// Display
plotshape(fomoSignal, title="FOMO", location=location.abovebar, color=color.red, style=shape.labeldown, text="FOMO")
plotshape(fudSignal, title="FUD", location=location.belowbar, color=color.green, style=shape.labelup, text="FUD")
// Reference Lines
plot(sma, "SMA 50", color=color.blue)
hline(70, "RSI 70", color=color.red, linestyle=hline.style_dotted)
hline(30, "RSI 30", color=color.green, linestyle=hline.style_dotted)
