MELONA OB STRATEGY U4 + PRICE ACTION AS RSI TradingView

Currency Pairs: Any

Timeframes:  Any

Minimum Deposit: Any

Recommended Account Type: ECN or Raw Spread

Leverage: From 1:30 to 1:1000

Recommend broker: Roboforex
Recommend Vps: GoVPSFX
Do you want to earn automatically and stably 5-10%/month with safe DD? Look here

MELONA OB STRATEGY U4 + PRICE ACTION AS RSI indicator on TradingView is a strategy that combines elements of Price Action and Relative Strength Index (RSI) analysis using the Tom DeMark (TD) Sequential concept to identify overbought (OB) and oversold (OS) zones. Below is a full description based on available data and the logic behind such strategies.

Basic Concept
MELONA OB STRATEGY U4 uses the TD Sequential indicator developed by Tom DeMark to count consecutive candle closes that may indicate potential trend reversals. This method is complemented by RSI analysis to identify overbought (OB) and oversold (OS) zones, as well as Price Action elements to confirm entries and exits.

– TD Sequential: Counts the number of consecutive candle closes above or below the close of four candles ago. The numbers 7, 8 and 9, displayed as triangles on the chart, indicate key stages in the sequence.
– RSI: Used to identify overbought (usually above 70) and oversold (usually below 30) zones, which helps filter TD Sequential signals.
– Price Action: Analyzes candlestick patterns (e.g. reversal patterns like Engulfing or Hammer) and support/resistance levels to confirm signals.

2.Main Components of the Indicator
The indicator includes the following elements:

– TD Sequential Count:
– Bullish Signal (TD Buy Setup): Counts consecutive candle closes above the close of four candles ago. When the count reaches 7, 8 or 9, it signals a possible upside reversal.
– Bearish Signal (TD Sell Setup): Counts consecutive closes below the close of four candles ago. The numbers 7, 8, 9 indicate a potential downside reversal.
– The numbers are displayed as triangles:
– Green triangles (bottom of the candle) — bullish signal.
– Red triangles (top of the candle) — bearish signal.

– RSI:
– The standard RSI with a length of 14 is used (default), but can be customized.
– OB/OS zones are customizable (default is 70/30).
– RSI helps filter TD Sequential signals, confirming whether the market is in extreme zones.

– Price Action:
– The indicator analyzes support and resistance levels, as well as key candlestick patterns.
– For example, a bullish TD Sequential signal at a support level with an RSI below 30 and a reversal pattern (e.g. “Hammer”) is considered more reliable.

– Additional Elements:
– The indicator can include Volume levels to confirm signals.
– Integration with other indicators such as Fibonacci levels or moving averages (EMA) is possible for additional filtering.

3.Signal logic
– Buy signal (Long):
– TD Sequential shows the number 9 (green triangle below).
– RSI is in the oversold zone (below 30) and is starting to turn up.
– Price Action confirmation: the price is at the support level, there is a bullish reversal candle (e.g. “Bullish Engulfing”).

– Sell signal (Short):
– TD Sequential shows the number 9 (red triangle above).
– RSI is in the overbought zone (above 70) and is starting to turn down.
– Price Action confirmation: the price is at the resistance level, there is a bearish reversal candle (e.g. “Bearish Engulfing”).

– Numbers 7 and 8:
– Number 7 indicates an early signal of a possible reversal.
– The number 8 increases the probability of a reversal.
– The number 9 is considered the final and most powerful signal.

4.Indicator Settings
While the exact settings depend on the code, typical parameters may include:
– RSI Length**: RSI length (default 14).
– OB/OS Levels: Overbought/oversold levels (default 70/30).
– TD Sequential Parameters: Setting the number of candles to analyze (default is comparison with the close of 4 candles ago).
– Price Action Filters: Option to enable/disable support/resistance or candlestick pattern analysis.
– Visual Settings: Triangle colors, display of levels and additional lines.