OPEN-SOURCE SCRIPT
QuantLine Bottom Indicator Lite
QuantLine Bottom Indicator Lite scores market bottoming as a PROCESS, not a single candle.
It counts how many independent public-domain exhaustion conditions align at once and
shows score X/5:
1) Mayer Multiple — price / long moving average (default 200). Lamp ON when deeply
undervalued vs the MA (user threshold, default 0.8).
2) Higher-timeframe RSI — RSI on Daily, Weekly, or Monthly. Lamp ON when HTF RSI is
oversold (default ≤ 35).
3) Volume capitulation — volume spike on a red candle. Lamp ON when volume ≥ N× its
average (default 2×) and the bar closes lower.
4) Drawdown from peak — % decline from an N-period high (default 200 bars, 40%).
5) Bollinger stretch — close below the lower Bollinger Band (default 20, 2σ).
Why combine five conditions:
A single indicator (e.g. RSI alone) often fires early or late. Bottoms in practice tend
to form when valuation (Mayer), timeframe (HTF RSI), volume (capitulation), drawdown,
and stretch (BB) converge. The X/5 score is a convergence meter — exhaustion building
across independent dimensions, not a precise buy point.
How to use:
• Best on Daily or Weekly charts (swing/macro context, not scalping).
• 0–1/5: few exhaustion signs — continuation more likely.
• 3/5+ (default highlight): exhaustion building — start watching for your own structure.
• 4–5/5: deep exhaustion zone — historically where reversals often originate; exact low
timing remains uncertain.
Optional alert when score reaches your threshold — observation only.
All thresholds are user-adjustable generic defaults. No on-chain data, no proprietary
calibration, no entries/stops/targets.
Educational context tool only. Not financial advice.
It counts how many independent public-domain exhaustion conditions align at once and
shows score X/5:
1) Mayer Multiple — price / long moving average (default 200). Lamp ON when deeply
undervalued vs the MA (user threshold, default 0.8).
2) Higher-timeframe RSI — RSI on Daily, Weekly, or Monthly. Lamp ON when HTF RSI is
oversold (default ≤ 35).
3) Volume capitulation — volume spike on a red candle. Lamp ON when volume ≥ N× its
average (default 2×) and the bar closes lower.
4) Drawdown from peak — % decline from an N-period high (default 200 bars, 40%).
5) Bollinger stretch — close below the lower Bollinger Band (default 20, 2σ).
Why combine five conditions:
A single indicator (e.g. RSI alone) often fires early or late. Bottoms in practice tend
to form when valuation (Mayer), timeframe (HTF RSI), volume (capitulation), drawdown,
and stretch (BB) converge. The X/5 score is a convergence meter — exhaustion building
across independent dimensions, not a precise buy point.
How to use:
• Best on Daily or Weekly charts (swing/macro context, not scalping).
• 0–1/5: few exhaustion signs — continuation more likely.
• 3/5+ (default highlight): exhaustion building — start watching for your own structure.
• 4–5/5: deep exhaustion zone — historically where reversals often originate; exact low
timing remains uncertain.
Optional alert when score reaches your threshold — observation only.
All thresholds are user-adjustable generic defaults. No on-chain data, no proprietary
calibration, no entries/stops/targets.
Educational context tool only. Not financial advice.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.