Dragon Soaring Indicator

Usage Guide:

1. Key Components:

• Color Bands (Left Scale):
  • Dark Blue (0-10): Oversold
  • Purple (10-50): Accumulation
  • Olive (50-80): Trend Development
  • Teal (80-90): Overbought
  • Green (90-100): Extreme Overbought

2. Main Signals:

• Primary Wave (Orange Line): Main trend direction
• Secondary Wave (Cyan Line): Momentum confirmation
• Buy Signal: When orange line crosses above cyan line (magenta highlight)
• Sell Signal: When orange line crosses below cyan line (yellow highlight)

3. Special Markers:

• Pink Sticks (50 level): Bullish momentum confirmed when appearing
• Cyan Sticks (50 level): Caution signal for potential reversal
• Right-side Arrows:
  • Cyan (102-112): Strong uptrend
  • Yellow (102-107): Moderate strength
  • Blue (-1 to -7): Oversold warning

4. Zone Identification:

• Use text labels on right side for quick reference:
  • Green: Bottom Zone (potential buying)
  • Cyan: Rebound/Strong Zones (hold positions)
  • Red: Risk Zone (consider profit-taking)

Basic Trading Rules:

1. Enter long positions when:

• Price is in Bottom/Rebound Zone
• Magenta buy signal appears
• Right-side cyan arrows present

2. Consider exiting when:

• Price enters Risk Zone
• Yellow sell signal appears
• Green retracement bars start forming

3. Use teal (80) and green (90) reference lines as profit targets

Tip: Combine with price action – look for confirmation when both TSOVB signals and actual breakouts/down occur simultaneously. The indicator works best on daily/weekly charts for swing trading.

Let’s take a look at this indicator formula:

STICKLINE(CLOSE>0,0,10,5,0),COLOR00008A;
STICKLINE(CLOSE>0,10,50,5,0),COLOR63006A;
STICKLINE(CLOSE>0,50,80,5,0),COLOR657600;
STICKLINE(CLOSE>0,80,90,5,0),COLOR00BBBB;
STICKLINE(CLOSE>0,90,100,5,0),COLOR79B715;

MAINTREND := SMA(((CLOSE-LLV(LOW,28))/(HHV(HIGH,28)-LLV(LOW,28))*100),3,1);
DRAWBAND(MAINTREND,RGB(110,0,20),50,RGB(60,60,60));
IF(MAINTREND>REF(MAINTREND,1),MAINTREND,DRAWNULL),COLORRED,LINETHICK2;
SIGNALLINE := SMA(MAINTREND,3,1);
PRIMARYWAVE: MAINTREND;
SECONDARYWAVE: SIGNALLINE;
DRAWBAND(PRIMARYWAVE,RGB(180,0,0),SECONDARYWAVE,RGB(0,150,180));
IF(MAINTREND>SIGNALLINE,SIGNALLINE,DRAWNULL),COLORFF00FF,LINETHICK2;
IF(MAINTREND<SIGNALLINE,SIGNALLINE,DRAWNULL),COLORFFFF00,LINETHICK2;

RSV := (CLOSE-LLV(CLOSE,9))/(HHV(CLOSE,9)-LLV(CLOSE,9))*100;
K := SMA(RSV,3,1);
D := SMA(K,3,1);
TYP := (HIGH+LOW+CLOSE)/3;
CCI := (TYP-MA(TYP,14))/(0.015*AVEDEV(TYP,14));
DIFF := EMA(CLOSE,2)-EMA(CLOSE,55);
DEA := EMA(DIFF,6);
MACD := 2*(DIFF-DEA);
TURNINGPOINT := IF(K>D AND CCI>0 AND DIFF>DEA AND MACD>0,1,0);
STICKLINE(TURNINGPOINT=1,49,51,4,0),COLORFF00FF;
STICKLINE(TURNINGPOINT=0,49,51,4,0),COLORCYAN;

VR2 := REF(LOW,1);
VR3 := SMA(ABS(LOW-VR2),3,1)/SMA(MAX(LOW-VR2,0),3,1)*100;
VR4 := EMA(IF(CLOSE*1.3,VR3*10,VR3/10),3);
VR5 := LLV(LOW,30);
VR6 := HHV(VR4,30);
VR7 := IF(MA(CLOSE,58),1,0);
VR8 := EMA(IF(LOW<=VR5,(VR4+VR6*2)/2,0),3)/618*VR7;
VR9 := IF(VR8>100,100,VR8);
WATCHSIGNAL: IF(VR9>-150,VR9,0),COLORFF00FF,LINETHICK2;
RETRACEPHASE: IF(VR9<REF(VR9,1),VR9,0),COLORGREEN,LINETHICK2;

STICKLINE(MAINTREND>=90,102,112,1,0),COLOR00FFFF;
STICKLINE(MAINTREND>=80,102,107,1,0),COLORFFFF00;
STICKLINE(MAINTREND<=10,-1,-7,1,0),COLOR0000FF;
STICKLINE(CLOSE>0,90,90,2,0),COLORDDDDDD;
STICKLINE(CLOSE>0,80,80,2,0),COLORDDDDDD;
STICKLINE(CLOSE>0,10,10,2,0),COLOR00DDDD;

DRAWTEXT(CURRBARSCOUNT=38,8,'BOTTOM ZONE'),COLORGREEN;
DRAWTEXT(CURRBARSCOUNT=38,35,'REBOUND ZONE'),COLOR00FFFF;
DRAWTEXT(CURRBARSCOUNT=38,70,'STRONG ZONE'),COLOR00FFFF;
DRAWTEXT(CURRBARSCOUNT=38,87,'RISK ZONE'),COLOR0000FF;