Dual RSI Reversals Filtered by Volume-Based Order Blocks

Summary

This indicator combines a fast and slow RSI crossover with volume-derived supply and demand zones. A buy signal requires the fast RSI to cross above the slow RSI after recently reaching an oversold level; a sell signal mirrors this after an overbought reading. The example defaults to RSI lengths of 5 and 14, thresholds of 25 and 75, and a three-bar lookback. An optional filter requires the signal candle to overlap an active order block on the matching side.

The order block engine identifies local volume peaks, assigns zones according to a swing-direction state, and keeps zones active until price mitigates them. Mitigation can be based on a wick or a close, and the document suggests zone boundaries as possible invalidation references. It provides indicator logic and configuration details, but no backtest, performance evidence, or asset-specific validation. The signals and zones are technical-analysis tools, so their usefulness depends on market, timeframe, and implementation choices.

Key ideas

• A fast RSI crossing a slow RSI qualifies only when the fast RSI recently visited an extreme.
• Volume pivots are used to create projected supply and demand zones according to swing direction.
• The optional filter requires a signal candle to overlap an active zone of the same direction.
• Wick-based mitigation removes zones sooner than close-based mitigation.
• The document describes indicator mechanics but provides no measured trading results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.