Donchian RSI Reversal Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Donchian RSI Reversal v1.0.0
--
-- Combines a Donchian Channel (the highest high and lowest low of the last
-- N candles) with RSI. A touch of the outer band shows price stretched to a
-- recent extreme; RSI returning from its extreme zone shows momentum turning.
--
-- HIGHER: during an RSI oversold excursion (RSI at or below 30) a candle
--         touched the lower Donchian band, and RSI now closes back above 30.
-- LOWER:  during an RSI overbought excursion (RSI at or above 70) a candle
--         touched the upper Donchian band, and RSI now closes back below 70.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Donchian RSI Reversal",
    short_name = "IQOW DC RSI",
    overlay = true
}

input_group {
    "1. Donchian Channel",
    channel_period = input (20, "Channel period", input.integer, 2, 200)
}

input_group {
    "2. RSI",
    rsi_period = input (14, "RSI period", input.integer, 2, 100),
    oversold_level = input (30, "Oversold level", input.double, 5, 45, 1, false),
    overbought_level = input (70, "Overbought level", input.double, 55, 95, 1, false)
}

input_group {
    "Display and advice",
    channel_visible = input { default = true, type = input.plot_visibility },
    middle_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    channel_color = input { default = "#56CEFF", type = input.color },
    middle_color = input { default = rgba(255, 255, 255, 0.35), type = input.color },
    channel_fill_color = input { default = rgba(86, 206, 255, 0.06), type = input.color },
    channel_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- Donchian Channel: inclusive rolling extremes, as on the IQ Option chart.
upper_band = highest (high, channel_period)
lower_band = lowest (low, channel_period)
middle_band = (upper_band + lower_band) / 2

rsi_value = rsi (close, rsi_period)

-- Current-bar scalars for the Lua rule logic.
local rsi_now = get_value (rsi_value, nil)
local rsi_previous = get_value (rsi_value [1], nil)
local upper_now = get_value (upper_band, nil)
local lower_now = get_value (lower_band, nil)

local levels_are_valid = oversold_level < 50 and overbought_level > 50

local data_is_ready =
    levels_are_valid and
    rsi_now ~= nil and
    rsi_previous ~= nil and
    upper_now ~= nil and
    lower_now ~= nil

-- A band touch: this candle set the channel's extreme.
local touched_lower = data_is_ready and get_value (low, 0) <= lower_now
local touched_upper = data_is_ready and get_value (high, 0) >= upper_now

-- "Armed" stays true while RSI remains in its extreme zone after a touch, so
-- the touch must belong to the same oversold or overbought excursion.
local was_long_armed = get_value (long_armed [1], false)
local was_short_armed = get_value (short_armed [1], false)

long_armed = conditional (
    data_is_ready and rsi_now <= oversold_level and (was_long_armed or touched_lower)
)

short_armed = conditional (
    data_is_ready and rsi_now >= overbought_level and (was_short_armed or touched_upper)
)

-- Event: RSI closes back across its level on this candle.
local rsi_recovers =
    data_is_ready and rsi_previous <= oversold_level and rsi_now > oversold_level

local rsi_fades =
    data_is_ready and rsi_previous >= overbought_level and rsi_now < overbought_level

higher_setup = conditional (rsi_recovers and was_long_armed)
lower_setup = conditional (rsi_fades and was_short_armed)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if channel_visible then
    fill (upper_band, lower_band, "Donchian area", channel_fill_color)
    plot (upper_band, "Upper Donchian", channel_color, channel_width)
    plot (lower_band, "Lower Donchian", channel_color, channel_width)
end

if middle_visible then
    plot (middle_band, "Donchian middle", middle_color, 1)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "DC RSI HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "DC RSI LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end