The Dots Indicator by Intromoto shows input levels of RSI, i.e. commonly considered "overbought" or "oversold" levels, across multiple simultaneous periods. The traders can utilize the signals generated by this indicator to determine potential position size and when to 'fade' moves, or to position themselves in agreement with the signals upon common pullbacks.
The Dots indicator has three identical, look-back specific indicators; small dot, medium dot, and large dot, with specific colors. Additionally, there is another low and high dot placement with a different metric.
It's commonly understood that divergences get "reset" or invalidated upon RSI returning to the mid-line 50 level, these dots can give you a reasonable idea on a more intuitive and candle-specific basis of whether a divergence has formed over windows of time.
In this documentation, we will explore the following:
- Adding Dots Indicator
- Understanding Different Dots
- Reconfigure Dots Indicator
- Right-Click Dots
- Important Notes
Let’s get started 🚀
Add Dots Indicator
Step 1: Navigate to the top toolbar and click on the vertical ellipsis (⋮) adjoining Indicators button.
Step 2: Search and select Dots Indicator from the list.
Step 3: Optionally edit the lengths of the Oscillators as well as the ‘Overbought’ and ‘Oversold Values’ via the parameters window. Click on the Apply button after editing the values.
You will find the dots of different sizes (small dot, medium dot, and large dot) and specific colors being plotted on the chart conveying different signals.
Understanding Different Dots
Irrespective of the time frame selected, the largest entries should be on candles with dots stacked up, large, and most extreme.
Reddish pink for shorts, greenish for longs. Blue and red dots are essentially calling longer time frames and apply a filter, so should be respectful of higher time frames.
Small dots are warnings, larger dots should be respected more so. Traders need to be aware of strong trends when the dots will appear as a counter to the successful trends.
The yellow, pink, and shades of green dots are RSI based, focusing on overbought and oversold conditions. The blue and red dots are also RSI based but have a filter applied to reduce signal noise and lower time frame triggers.
Reconfigure Dots Indicator
You can reconfigure the Dots Indicator graphed on the chart to modify its properties or style or both. Simply click on the vertical ellipsis (⋮) of the indicator you want to reconfigure from the indicator list at the top left of the chart.
As a result, you can reconfigure or modify the properties and style and then click on the Apply button and the changes will be applied to the Dots Indicator.
Right-click on the dots to Create Alerts or Manage Dot Properties.
Select this option to create simple dynamic alerts and allow TrendSpider to fire notifications whenever the price breaks through, touches, or bounces off of the line. For more information, please refer to the documentation- Create a Dynamic Price Alert
Select this option to customize and edit the properties of the Dots Indicator.
- Though it's commonly understood that divergences get "reset" or invalidated upon RSI returning to the mid-line 50 level, these dots can give you a reasonable idea on a more intuitive and candle-specific basis of whether a divergence has formed over windows of time.
- If the price has made a higher high but has either a smaller dot than the previous high, or no dot at all, this indicates a bearish divergence and produces an increased probability of retracing to a support level, or in the extreme scenarios, a trend reversal.
- If the price makes a lower low but has either a smaller dot or no dot at all, you'll likely have a bullish divergence on your chart, and could play for a bounce or bullish trend reversal.