Envelopes RSI Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Envelopes RSI v1.0.1
--
-- Moving Average Envelopes draw two lines a fixed percentage above and below
-- a simple moving average. The article's "bounce from the sides" idea is used:
-- price dips through an envelope line, closes back inside, and RSI agrees that
-- the move was stretched. Deviation uses IQ Option's unit: 1 = 0.1% of the average.
--
-- RSI follows IQ Option's built-in RSI: closing prices, with the average gain
-- and the average loss smoothed by an exponential average (alpha 2 / (period +
-- 1)). Version 1.0.1 (9 October 2026) changed this from Wilder smoothing; the
-- inputs, periods and levels are unchanged.
--
-- HIGHER: the low touches or pierces the lower envelope, the candle closes back
--         above it, and RSI(14) is below 35.
-- LOWER:  the high touches or pierces the upper envelope, the candle closes back
--         below it, and RSI(14) is above 65.
--
-- 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 Envelopes RSI",
    short_name = "IQOW ENV RSI",
    overlay = true
}

input_group {
    "1. Envelopes",
    envelope_period = input (20, "SMA period", input.integer, 2, 200),
    envelope_deviation = input (1, "Deviation (1 = 0.1%)", input.double, 0.01, 300, 0.01, false)
}

input_group {
    "2. RSI filter",
    rsi_period = input (14, "RSI period", input.integer, 2, 100),
    rsi_low_level = input (35, "RSI below this for HIGHER", input.double, 5, 50, 1, false),
    rsi_high_level = input (65, "RSI above this for LOWER", input.double, 50, 95, 1, false)
}

input_group {
    "Display and advice",
    lines_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",
    envelope_color = input { default = "#2384C2", type = input.color },
    envelope_fill_color = input { default = rgba(86, 206, 255, 0.10), type = input.color },
    middle_color = input { default = "#FF7700", type = input.color },
    line_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 }
}

-- Envelopes as on the IQ Option chart: SMA plus and minus deviation / 1000.
middle_line = sma (close, envelope_period)
envelope_offset = envelope_deviation / 1000 * middle_line
upper_line = middle_line + envelope_offset
lower_line = middle_line - envelope_offset

-- RSI as IQ Option's built-in RSI draws it: the average gain and the average
-- loss are exponential averages (alpha = 2 / (period + 1)), not Wilder's
-- smoothing (alpha = 1 / period). It stays empty until both averages exist and
-- is 50 when price did not move at all.
rsi_change = close - close [1]
rsi_gain = ema (max (rsi_change, 0), rsi_period)
rsi_loss = ema (max (-rsi_change, 0), rsi_period)
rsi_total = rsi_gain + rsi_loss
rsi_value = iff (rsi_total > 0, 100 * rsi_gain / rsi_total, rsi_total + 50)

local high_now = get_value (high, nil)
local low_now = get_value (low, nil)
local close_now = get_value (close, nil)
local upper_now = get_value (upper_line, nil)
local lower_now = get_value (lower_line, nil)
local rsi_now = get_value (rsi_value, nil)

local levels_are_valid = rsi_low_level < 50 and rsi_high_level > 50
local data_is_ready =
    levels_are_valid and
    high_now ~= nil and low_now ~= nil and close_now ~= nil and
    upper_now ~= nil and lower_now ~= nil and rsi_now ~= nil

-- Touch the envelope, close back inside, and RSI shows the stretch.
higher_setup = conditional (
    data_is_ready and low_now <= lower_now and close_now > lower_now and rsi_now < rsi_low_level
)

lower_setup = conditional (
    data_is_ready and high_now >= upper_now and close_now < upper_now and rsi_now > rsi_high_level
)

-- 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 lines_visible then
    fill (upper_line, lower_line, "Envelope area", envelope_fill_color)
    plot (upper_line, "Upper envelope", envelope_color, line_width)
    plot (lower_line, "Lower envelope", envelope_color, line_width)
end

if middle_visible then
    plot (middle_line, "Envelope middle (SMA)", middle_color, 1)
end

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

    plot_shape (
        confirmed_lower,
        "ENV 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