# Level Zones & Bands

## Level Zones & Bands — Trader's Guide (EN)

> Signals are the leaves. **Zones and bands are the trunk.** Get this part right and you'll read what the market is saying without waiting for an arrow to fire.

***

### RSI panel map (top to bottom)

<figure><img src="/files/q2LehaDkSHv6vDyxTTjD" alt=""><figcaption></figcaption></figure>

```
100 ─────────────────────────  Ceiling
 90 ──────  Extreme overbought (rare)
 85 ──────
 80 ──────  Standard overbought
 60 ──────  ┐
 57 ──────  ┘  Bear level (resistance)
 50 ─────────  Mid-line (equilibrium)
 43 ──────  ┐
 40 ──────  ┘  Bull level (support)
 20 ──────  Standard oversold
 15 ──────
 10 ──────  Extreme oversold (rare)
  0 ─────────────────────────  Floor
```

***

### 1. The 50 mid-line

> **The bull / bear divider**.

* RSI > 50: buyers in control.
* RSI < 50: sellers in control.
* RSI hovering around 50 (47–53): **indecision** — don't rush in.

#### Practical tip

* Only enter when RSI has clearly **picked a side** (≥ 5–7 units away from 50).
* RSI crossing 50 upward with volume → bullish momentum shift.
* RSI crossing 50 downward with volume → bearish momentum shift.

***

### 2. Bull level (40–43) — support zone

> **The "good" zone to buy in an uptrend.**

#### When the zone fills green

* The indicator confirms the market is in a **bullish phase**.
* RSI just dipped to 40–43 = price is **pulling back to value** after a rally — potential buy opportunity.

#### When the zone is NOT filled (or barely tinted)

* The indicator did not detect a bullish phase → **don't buy** even if RSI sits at 40–43.

#### Action

* Wait for **▲+ Pullback Buy** or **TS Trap Sell** to fire inside this zone → high-quality entry.
* When a signal fires, the zone becomes a **green 3D step shape** — visual cue for instant recognition.

***

### 3. Bear level (57–60) — resistance zone

> **The "good" zone to sell in a downtrend.**

#### When the zone fills red

* The indicator confirms a **bearish phase**.
* RSI just bounced to 57–60 = price is **lifting to resistance** after a drop — potential sell opportunity.

#### When the zone is NOT filled

* Don't sell just because RSI sits at 57–60. Need the red fill for bearish context.

#### Action

* Wait for **▼− Pullback Sell** or **TB Trap Buy** to fire inside this zone → high-quality entry.
* When a signal fires, the zone becomes a **red 3D step shape**.

***

### 4. Overbought 80 / Oversold 20

> **A warning area — not an immediate entry zone.**

#### RSI ≥ 80

* Market has "run too hot" upward → **pullback probability is high**.
* **Do NOT short the top** just because RSI > 80. In raging trends, RSI can stay above 80 for dozens of bars.
* Correct play: **wait for a pullback signal** (▼− or Sell Hidden) after RSI exits 80.

#### RSI ≤ 20

* Market has "run too cold" downward → **bounce probability is high**.
* **Do NOT buy the bottom** just because RSI < 20. In a strong sell-off, RSI can sit below 20 for many bars.
* Correct play: **wait for a pullback signal** (▲+ or Buy Hidden) after RSI exits 20.

#### Filled regions

* When RSI ≥ 80, the 80–100 band fills with deep green.
* When RSI ≤ 20, the 0–20 band fills with deep red.
* The deeper the fill, the deeper RSI is in the extreme.

***

### 5. Extreme bands 85/90 and 10/15

> **The "destruction zone" — only appears in vertical moves.**

#### RSI hitting 85–90

* Extremely rare (a few times per year on 1D).
* When it happens, a **meaningful pullback in the next several days** is almost guaranteed.
* Don't short immediately — wait for confirmation.

#### RSI hitting 10–15

* Sign of **panic selling**.
* Often a **mid-term bottom**.
* Don't catch the bottom immediately — wait for confirmation (Buy Hidden, ▲+).

#### Visual

* 85–90 and 10–15 are drawn with **gradient steps** to telegraph intensity.
* When RSI touches these, **trim existing positions** — don't get greedy.

***

### 6. EMA-9 (blue, optional)

> **The fast line** on RSI.

#### Role

* Reacts quickly to RSI changes.
* Used as an **internal trigger** for pullback signals (already handled for you).

#### How to read it visually

* RSI crossing EMA-9 upward in oversold → short-term bullish momentum.
* RSI crossing EMA-9 downward in overbought → short-term bearish momentum.

#### When to enable it

* Scalpers who want to see ultra-short momentum.
* The indicator hides EMA-9 by default to keep the panel clean; enable in Settings → group **indicator overlay**.

***

### 7. WMA-45 (orange) — slow line

> **The trend backbone on RSI.** Most important feature after RSI itself.

#### Role

* Acts as **dynamic support** for RSI in uptrends.
* Acts as **dynamic resistance** for RSI in downtrends.

#### Quick read

| State                                       | Meaning                           |
| ------------------------------------------- | --------------------------------- |
| RSI **above** WMA-45 for many bars          | Uptrend in motion                 |
| RSI **below** WMA-45 for many bars          | Downtrend in motion               |
| RSI **touches WMA-45** then bounces         | Healthy pullback → keep buying    |
| RSI **touches WMA-45** then pierces through | Possible trend reversal — careful |
| RSI and WMA-45 **tangled together**         | Sideways → stand aside            |

#### Tip

* The cleanest Pullback signal is when **RSI pulls back to WMA-45 and bounces**.
* WMA-45 is **on by default**. Disabling it strips a critical filter.

***

### 8. The "3D step" effect inside level zones

> **This is a visual cue — not a separate signal.**

#### How it works

* When a **Buy** signal (▲+ or Buy Hidden) fires inside the Bull level (40–43): **3 stacked green boxes climbing up** appear at that zone.
* When a **Sell** signal (▼− or Sell Hidden) fires inside the Bear level (57–60): **3 stacked red boxes falling down** appear.

#### Reading the meaning

* Climbing steps = visualizing upward push.
* Falling steps = visualizing downward press.
* The most opaque layer hugs the level itself; the lighter layers are the signal's "breath".

#### Notes

* The effect only draws on the trigger bar — but you can see it linger in history for visual review.
* When too many old signals accumulate, the oldest steps may be removed to make room for new ones (Pine Script limit).

***

### 9. Price-target lines (in the MTF table)

The MTF table has two final rows:

* **80 ▲** — estimated price when chart RSI hits 80.
* **20 ▼** — estimated price when chart RSI hits 20.

#### How to use

* As a **TP reference** for counter-trend entries.
* As a **profit-taking target** for trend-aligned entries.
* Not a guarantee — these are **estimates from current momentum** and shift as price moves.

***

### 10. Candle coloring

> Bridges the RSI panel and the price chart so you don't have to glance twice.

#### Color legend

| Candle color | Meaning                                |
| ------------ | -------------------------------------- |
| Bright green | Strong bull — RSI > 50 + bullish state |
| Dark green   | Weak bull — pullback in progress       |
| Bright red   | Strong bear — RSI < 50 + bearish state |
| Dark red     | Weak bear — pullback in progress       |
| Gradient     | Neutral, RSI in mid-zone               |

#### Practical tip

* Multiple **bright green** candles in a row = trend running → favor buy pullbacks.
* Multiple **bright red** candles in a row = trend running → favor sell pullbacks.
* Bright fading to dark → trend losing steam → reduce size.

#### Toggle

* On by default. Disable in Settings → group **General settings** → **Candle Color**.

***

### 11. The "level + signal" combo grade

| Signal                                | Ideal level zone | Grade                        |
| ------------------------------------- | ---------------- | ---------------------------- |
| ▲+ inside Bull level (40–43, green)   | ✅                | A — full size                |
| ▲+ outside Bull level                 | ⚠️               | B — half size                |
| ▼− inside Bear level (57–60, red)     | ✅                | A — full size                |
| ▼− outside Bear level                 | ⚠️               | B — half size                |
| TB inside Bull level + RSI near 60    | ✅                | A — full trap                |
| TS inside Bear level + RSI near 40    | ✅                | A — full trap                |
| Any signal while RSI is at 80+ or 20− | ⚠️               | C — too extreme, stand aside |

***


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