Pine Script Xauusd Single Arrow Indicator

To create a simple buy/sell arrow indicator for XAUUSD (Gold) in Pine Script, you can use a variety of technical indicators to signal potential buy and sell points. Here's an example that uses a combination of Moving Averages and Relative Strength Index (RSI) to generate signals and plot single arrows on the chart.

Example of a Simple Arrow Indicator for XAUUSD

This script uses:

• A 50-period Simple Moving Average (SMA) as a trend filter.
• A 14-period RSI to identify overbought (sell) and oversold (buy) conditions.

Arrows are plotted when the conditions for buying or selling are met.

//@version=5
indicator("XAUUSD Buy/Sell Arrow Indicator", overlay=true)

// Input settings for the Moving Average and RSI
smaPeriod = input.int(50, title="SMA Period")
rsiPeriod = input.int(14, title="RSI Period")
overboughtLevel = input.int(70, title="RSI Overbought Level")
oversoldLevel = input.int(30, title="RSI Oversold Level")

// Calculate SMA and RSI
sma = ta.sma(close, smaPeriod)
rsi = ta.rsi(close, rsiPeriod)

// Buy signal: RSI below oversold and price above SMA (uptrend)
buySignal = (rsi < oversoldLevel) and (close > sma)

// Sell signal: RSI above overbought and price below SMA (downtrend)
sellSignal = (rsi > overboughtLevel) and (close < sma)

// Plot Buy arrow (green up arrow)
plotshape(series=buySignal, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="Buy", size=size.small)

// Plot Sell arrow (red down arrow)
plotshape(series=sellSignal, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="Sell", size=size.small)

// Plot the Simple Moving Average
plot(sma, color=color.blue, title="SMA")
        

Explanation:

1. SMA (50-period) is used to filter the trend:
2. If the price is above the SMA, it's considered an uptrend (buy conditions).
3. If the price is below the SMA, it's considered a downtrend (sell conditions).
4. RSI (14-period) is used to detect overbought and oversold conditions:
5. If the RSI drops below the 30 (oversold) level and the price is above the SMA, it generates a buy signal.
6. If the RSI rises above the 70 (overbought) level and the price is below the SMA, it generates a sell signal.
7. Arrows are plotted for buy and sell signals:
8. Green arrow (Buy) below the bars when the conditions for a buy signal are met.
9. Red arrow (Sell) above the bars when the conditions for a sell signal are met.

This simple setup can be modified with other indicators or different thresholds based on your specific trading strategy for XAUUSD.