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RSI: alternative derivationMost traders accept the Relative Strength Index (RSI) as a standard tool for measuring momentum. But what if RSI is actually a position indicator? This script introduces an alternative derivation of RSI, offering a fresh perspective on its true nature. Instead of relying on the traditional calculation of average gains and losses, this approach directly considers the price's position relative to its equilibrium (moving average), adjusted for volatility. While the final value remains identical to the standard RSI, this alternative derivation offers a completely new understanding of the indicator. Key components: Price (Close) Utilizes the closing price, consistent with the original RSI formula. normalization factor Transforms raw calculations into a fixed range between -1 and +1. normalization_factor = 1 / (Length - 1) EMA of Price Applies Wilder’s Exponential Moving Average (EMA) to the price, serving as the anchor point for measuring price position, similar to the traditional RSI formula. myEMA = ta.rma(close,Length) EMA of close-to-close absolute changes (unit of volatility) Adjusts for market differences by applying a Wilder’s EMA to absolute price changes (volatility), ensuring consistency across various assets. CC_vol = ta.rma(math.abs(close - close ),Length) Calculation Breakdown DISTANCE: Calculate the difference between the closing price and its Wilder's EMA. A positive value indicates the price is above the EMA; a negative value indicates it is below. distance = close - myEMA STANDARDIZED DISTANCE Divide the distance by the unit of volatility to standardize the measurement across different markets. S_distance = distance / CC_vol NORMALIZED DISTANCE Normalize the standardized distance using the normalization factor (n-1) to adjust for the lookback period. N_distance = S_distance * normalization_factor RSI Finally, scale the normalized distance to fit within the standard RSI range of 0 to 100. myRSI = 50 * (1 + N_distance) The final equation: RSI = 50 × What This Means for RSI Same RSI Values, Different Interpretation The standard RSI formula may obscure its true measurement, whereas this approach offers clarity. RSI primarily indicates the price's position relative to its equilibrium, rather than directly measuring momentum. RSI can still be used to analyze momentum, but in a more intuitive and well-informed way.
Indicador Pine Script®
por AdaptiveRSI
RSI Full Forecast [Titans_Invest]RSI Full Forecast Get ready to experience the ultimate evolution of RSI-based indicators – the RSI Full Forecast, a boosted and even smarter version of the already powerful: RSI Forecast Now featuring over 40 additional entry conditions (forecasts), this indicator redefines the way you view the market. AI-Powered RSI Forecasting: Using advanced linear regression with the least squares method – a solid foundation for machine learning - the RSI Full Forecast enables you to predict future RSI behavior with impressive accuracy. But that’s not all: this new version also lets you monitor future crossovers between the RSI and the MA RSI, delivering early and strategic signals that go far beyond traditional analysis. You’ll be able to monitor future crossovers up to 20 bars ahead, giving you an even broader and more precise view of market movements. See the Future, Now: • Track upcoming RSI & RSI MA crossovers in advance. • Identify potential reversal zones before price reacts. • Uncover statistical behavior patterns that would normally go unnoticed. 40+ Intelligent Conditions: The new layer of conditions is designed to detect multiple high-probability scenarios based on historical patterns and predictive modeling. Each additional forecast is a window into the price's future, powered by robust mathematics and advanced algorithmic logic. Full Customization: All parameters can be tailored to fit your strategy – from smoothing periods to prediction sensitivity. You have complete control to turn raw data into smart decisions. Innovative, Accurate, Unique: This isn’t just an upgrade. It’s a quantum leap in technical analysis. RSI Full Forecast is the first of its kind: an indicator that blends statistical analysis, machine learning, and visual design to create a true real-time predictive system. ⯁ SCIENTIFIC BASIS LINEAR REGRESSION Linear Regression is a fundamental method of statistics and machine learning, used to model the relationship between a dependent variable y and one or more independent variables 𝑥. The general formula for a simple linear regression is given by: y = β₀ + β₁x + ε β₁ = Σ((xᵢ - x̄)(yᵢ - ȳ)) / Σ((xᵢ - x̄)²) β₀ = ȳ - β₁x̄ Where: y   = is the predicted variable (e.g. future value of RSI) x ​​  = is the explanatory variable (e.g. time or bar index) β0 = is the intercept (value of 𝑦 when 𝑥 = 0) 𝛽1 = is the slope of the line (rate of change) ε   = is the random error term The goal is to estimate the coefficients 𝛽0 and 𝛽1 ​​so as to minimize the sum of the squared errors — the so-called Random Error Method Least Squares. ⯁ LEAST SQUARES ESTIMATION To minimize the error between predicted and observed values, we use the following formulas: β₁ = / β₀ = ȳ - β₁x̄ Where: ∑ = sum x̄ = mean of x ȳ = mean of y x_i, y_i = individual values ​​of the variables. Where: x_i and y_i are the means of the independent and dependent variables, respectively. i ranges from 1 to n, the number of observations. These equations guarantee the best linear unbiased estimator, according to the Gauss-Markov theorem, assuming homoscedasticity and linearity. ⯁ LINEAR REGRESSION IN MACHINE LEARNING Linear regression is one of the cornerstones of supervised learning. Its simplicity and ability to generate accurate quantitative predictions make it essential in AI systems, predictive algorithms, time series analysis, and automated trading strategies. By applying this model to the RSI, you are literally putting artificial intelligence at the heart of a classic indicator, bringing a new dimension to technical analysis. ⯁ VISUAL INTERPRETATION Imagine an RSI time series like this: Time → RSI    → The regression line will smooth these values ​​and extend them n periods into the future, creating a predicted trajectory based on the historical moment. This line becomes the predicted RSI, which can be crossed with the actual RSI to generate more intelligent signals. ⯁ SUMMARY OF SCIENTIFIC CONCEPTS USED Linear Regression Models the relationship between variables using a straight line. Least Squares Minimizes the sum of squared errors between prediction and reality. Time Series Forecasting Estimates future values ​​based on historical data. Supervised Learning Trains models to predict outputs from known inputs. Statistical Smoothing Reduces noise and reveals underlying trends. ⯁ WHY THIS INDICATOR IS REVOLUTIONARY Scientifically-based: Based on statistical theory and mathematical inference. Unprecedented: First public RSI with least squares predictive modeling. Intelligent: Built with machine learning logic. Practical: Generates forward-thinking signals. Customizable: Flexible for any trading strategy. ⯁ CONCLUSION By combining RSI with linear regression, this indicator allows a trader to predict market momentum, not just follow it. RSI Full Forecast is not just an indicator — it is a scientific breakthrough in technical analysis technology. ⯁ Example of simple linear regression, which has one independent variable: ⯁ In linear regression, observations ( red ) are considered to be the result of random deviations ( green ) from an underlying relationship ( blue ) between a dependent variable ( y ) and an independent variable ( x ). ⯁ Visualizing heteroscedasticity in a scatterplot against 100 random fitted values ​​using Matlab: ⯁ The data sets in the Anscombe's quartet are designed to have approximately the same linear regression line (as well as nearly identical means, standard deviations, and correlations) but are graphically very different. This illustrates the pitfalls of relying solely on a fitted model to understand the relationship between variables. ⯁ The result of fitting a set of data points with a quadratic function: _________________________________________________ 🔮 Linear Regression: PineScript Technical Parameters 🔮 _________________________________________________ Forecast Types: • Flat: Assumes prices will remain the same. • Linreg: Makes a 'Linear Regression' forecast for n periods. Technical Information: ta.linreg (built-in function) Linear regression curve. A line that best fits the specified prices over a user-defined time period. It is calculated using the least squares method. The result of this function is calculated using the formula: linreg = intercept + slope * (length - 1 - offset), where intercept and slope are the values ​​calculated using the least squares method on the source series. Syntax: • Function: ta.linreg() Parameters: • source: Source price series. • length: Number of bars (period). • offset: Offset. • return: Linear regression curve. This function has been cleverly applied to the RSI, making it capable of projecting future values ​​based on past statistical trends. ______________________________________________________ ______________________________________________________ ⯁ WHAT IS THE RSI❓ The Relative Strength Index (RSI) is a technical analysis indicator developed by J. Welles Wilder. It measures the magnitude of recent price movements to evaluate overbought or oversold conditions in a market. The RSI is an oscillator that ranges from 0 to 100 and is commonly used to identify potential reversal points, as well as the strength of a trend. ⯁ HOW TO USE THE RSI❓ The RSI is calculated based on average gains and losses over a specified period (usually 14 periods). It is plotted on a scale from 0 to 100 and includes three main zones:   •  Overbought: When the RSI is above 70, indicating that the asset may be overbought.   •  Oversold: When the RSI is below 30, indicating that the asset may be oversold.   •  Neutral Zone: Between 30 and 70, where there is no clear signal of overbought or oversold conditions. ______________________________________________________ ______________________________________________________ ⯁ ENTRY CONDITIONS The conditions below are fully flexible and allow for complete customization of the signal. ______________________________________________________ ______________________________________________________ 🔹 CONDITIONS TO BUY 📈 ______________________________________________________   •  Signal Validity: The signal will remain valid for X bars .   •  Signal Sequence: Configurable as AND or OR . 📈 RSI Conditions: 🔹 RSI > Upper 🔹 RSI < Upper 🔹 RSI > Lower 🔹 RSI < Lower 🔹 RSI > Middle 🔹 RSI < Middle 🔹 RSI > MA 🔹 RSI < MA 📈 MA Conditions: 🔹 MA > Upper 🔹 MA < Upper 🔹 MA > Lower 🔹 MA < Lower 📈 Crossovers: 🔹 RSI (Crossover) Upper 🔹 RSI (Crossunder) Upper 🔹 RSI (Crossover) Lower 🔹 RSI (Crossunder) Lower 🔹 RSI (Crossover) Middle 🔹 RSI (Crossunder) Middle 🔹 RSI (Crossover) MA 🔹 RSI (Crossunder) MA 🔹 MA (Crossover) Upper 🔹 MA (Crossunder) Upper 🔹 MA (Crossover) Lower 🔹 MA (Crossunder) Lower 📈 RSI Divergences: 🔹 RSI Divergence Bull 🔹 RSI Divergence Bear 📈 RSI Forecast: 🔹 RSI (Crossover) MA Forecast 🔹 RSI (Crossunder) MA Forecast 🔹 RSI Forecast 1 > MA Forecast 1 🔹 RSI Forecast 1 < MA Forecast 1 🔹 RSI Forecast 2 > MA Forecast 2 🔹 RSI Forecast 2 < MA Forecast 2 🔹 RSI Forecast 3 > MA Forecast 3 🔹 RSI Forecast 3 < MA Forecast 3 🔹 RSI Forecast 4 > MA Forecast 4 🔹 RSI Forecast 4 < MA Forecast 4 🔹 RSI Forecast 5 > MA Forecast 5 🔹 RSI Forecast 5 < MA Forecast 5 🔹 RSI Forecast 6 > MA Forecast 6 🔹 RSI Forecast 6 < MA Forecast 6 🔹 RSI Forecast 7 > MA Forecast 7 🔹 RSI Forecast 7 < MA Forecast 7 🔹 RSI Forecast 8 > MA Forecast 8 🔹 RSI Forecast 8 < MA Forecast 8 🔹 RSI Forecast 9 > MA Forecast 9 🔹 RSI Forecast 9 < MA Forecast 9 🔹 RSI Forecast 10 > MA Forecast 10 🔹 RSI Forecast 10 < MA Forecast 10 🔹 RSI Forecast 11 > MA Forecast 11 🔹 RSI Forecast 11 < MA Forecast 11 🔹 RSI Forecast 12 > MA Forecast 12 🔹 RSI Forecast 12 < MA Forecast 12 🔹 RSI Forecast 13 > MA Forecast 13 🔹 RSI Forecast 13 < MA Forecast 13 🔹 RSI Forecast 14 > MA Forecast 14 🔹 RSI Forecast 14 < MA Forecast 14 🔹 RSI Forecast 15 > MA Forecast 15 🔹 RSI Forecast 15 < MA Forecast 15 🔹 RSI Forecast 16 > MA Forecast 16 🔹 RSI Forecast 16 < MA Forecast 16 🔹 RSI Forecast 17 > MA Forecast 17 🔹 RSI Forecast 17 < MA Forecast 17 🔹 RSI Forecast 18 > MA Forecast 18 🔹 RSI Forecast 18 < MA Forecast 18 🔹 RSI Forecast 19 > MA Forecast 19 🔹 RSI Forecast 19 < MA Forecast 19 🔹 RSI Forecast 20 > MA Forecast 20 🔹 RSI Forecast 20 < MA Forecast 20 ______________________________________________________ ______________________________________________________ 🔸 CONDITIONS TO SELL 📉 ______________________________________________________   •  Signal Validity: The signal will remain valid for X bars .   •  Signal Sequence: Configurable as AND or OR . 📉 RSI Conditions: 🔸 RSI > Upper 🔸 RSI < Upper 🔸 RSI > Lower 🔸 RSI < Lower 🔸 RSI > Middle 🔸 RSI < Middle 🔸 RSI > MA 🔸 RSI < MA 📉 MA Conditions: 🔸 MA > Upper 🔸 MA < Upper 🔸 MA > Lower 🔸 MA < Lower 📉 Crossovers: 🔸 RSI (Crossover) Upper 🔸 RSI (Crossunder) Upper 🔸 RSI (Crossover) Lower 🔸 RSI (Crossunder) Lower 🔸 RSI (Crossover) Middle 🔸 RSI (Crossunder) Middle 🔸 RSI (Crossover) MA 🔸 RSI (Crossunder) MA 🔸 MA (Crossover) Upper 🔸 MA (Crossunder) Upper 🔸 MA (Crossover) Lower 🔸 MA (Crossunder) Lower 📉 RSI Divergences: 🔸 RSI Divergence Bull 🔸 RSI Divergence Bear 📉 RSI Forecast: 🔸 RSI (Crossover) MA Forecast 🔸 RSI (Crossunder) MA Forecast 🔸 RSI Forecast 1 > MA Forecast 1 🔸 RSI Forecast 1 < MA Forecast 1 🔸 RSI Forecast 2 > MA Forecast 2 🔸 RSI Forecast 2 < MA Forecast 2 🔸 RSI Forecast 3 > MA Forecast 3 🔸 RSI Forecast 3 < MA Forecast 3 🔸 RSI Forecast 4 > MA Forecast 4 🔸 RSI Forecast 4 < MA Forecast 4 🔸 RSI Forecast 5 > MA Forecast 5 🔸 RSI Forecast 5 < MA Forecast 5 🔸 RSI Forecast 6 > MA Forecast 6 🔸 RSI Forecast 6 < MA Forecast 6 🔸 RSI Forecast 7 > MA Forecast 7 🔸 RSI Forecast 7 < MA Forecast 7 🔸 RSI Forecast 8 > MA Forecast 8 🔸 RSI Forecast 8 < MA Forecast 8 🔸 RSI Forecast 9 > MA Forecast 9 🔸 RSI Forecast 9 < MA Forecast 9 🔸 RSI Forecast 10 > MA Forecast 10 🔸 RSI Forecast 10 < MA Forecast 10 🔸 RSI Forecast 11 > MA Forecast 11 🔸 RSI Forecast 11 < MA Forecast 11 🔸 RSI Forecast 12 > MA Forecast 12 🔸 RSI Forecast 12 < MA Forecast 12 🔸 RSI Forecast 13 > MA Forecast 13 🔸 RSI Forecast 13 < MA Forecast 13 🔸 RSI Forecast 14 > MA Forecast 14 🔸 RSI Forecast 14 < MA Forecast 14 🔸 RSI Forecast 15 > MA Forecast 15 🔸 RSI Forecast 15 < MA Forecast 15 🔸 RSI Forecast 16 > MA Forecast 16 🔸 RSI Forecast 16 < MA Forecast 16 🔸 RSI Forecast 17 > MA Forecast 17 🔸 RSI Forecast 17 < MA Forecast 17 🔸 RSI Forecast 18 > MA Forecast 18 🔸 RSI Forecast 18 < MA Forecast 18 🔸 RSI Forecast 19 > MA Forecast 19 🔸 RSI Forecast 19 < MA Forecast 19 🔸 RSI Forecast 20 > MA Forecast 20 🔸 RSI Forecast 20 < MA Forecast 20 ______________________________________________________ ______________________________________________________ 🤖 AUTOMATION 🤖 • You can automate the BUY and SELL signals of this indicator. ______________________________________________________ ______________________________________________________ ⯁ UNIQUE FEATURES ______________________________________________________ Linear Regression: (Forecast) Signal Validity: The signal will remain valid for X bars Signal Sequence: Configurable as AND/OR Condition Table: BUY/SELL Condition Labels: BUY/SELL Plot Labels in the Graph Above: BUY/SELL Automate and Monitor Signals/Alerts: BUY/SELL Linear Regression (Forecast) Signal Validity: The signal will remain valid for X bars Signal Sequence: Configurable as AND/OR Condition Table: BUY/SELL Condition Labels: BUY/SELL Plot Labels in the Graph Above: BUY/SELL Automate and Monitor Signals/Alerts: BUY/SELL ______________________________________________________ 📜 SCRIPT : RSI Full Forecast 🎴 Art by  : @Titans_Invest & @DiFlip 👨‍💻 Dev by : @Titans_Invest & @DiFlip 🎑 Titans Invest — The Wizards Without Gloves 🧤 ✨ Enjoy! ______________________________________________________ o Mission 🗺 • Inspire Traders to manifest Magic in the Market. o Vision 𐓏 • To elevate collective Energy 𐓷𐓏
Indicador Pine Script®
por Titans_Invest
RSI Forecast [Titans_Invest]RSI Forecast Introducing one of the most impressive RSI indicators ever created – arguably the best on TradingView, and potentially the best in the world. RSI Forecast is a visionary evolution of the classic RSI, merging powerful customization with groundbreaking predictive capabilities. While preserving the core principles of traditional RSI, it takes analysis to the next level by allowing users to anticipate potential future RSI movements. Real-Time RSI Forecasting: For the first time ever, an RSI indicator integrates linear regression using the least squares method to accurately forecast the future behavior of the RSI. This innovation empowers traders to stay one step ahead of the market with forward-looking insight. Highly Customizable: Easily adapt the indicator to your personal trading style. Fine-tune a variety of parameters to generate signals perfectly aligned with your strategy. Innovative, Unique, and Powerful: This is the world’s first RSI Forecast to apply this predictive approach using least squares linear regression. A truly elite-level tool designed for traders who want a real edge in the market. ⯁ SCIENTIFIC BASIS LINEAR REGRESSION Linear Regression is a fundamental method of statistics and machine learning, used to model the relationship between a dependent variable y and one or more independent variables 𝑥. The general formula for a simple linear regression is given by: y = β₀ + β₁x + ε Where: y   = is the predicted variable (e.g. future value of RSI) x ​​  = is the explanatory variable (e.g. time or bar index) β0 = is the intercept (value of 𝑦 when 𝑥 = 0) 𝛽1 = is the slope of the line (rate of change) ε   = is the random error term The goal is to estimate the coefficients 𝛽0 and 𝛽1 ​​so as to minimize the sum of the squared errors — the so-called Random Error Method Least Squares. ⯁ LEAST SQUARES ESTIMATION To minimize the error between predicted and observed values, we use the following formulas: β₁ = / β₀ = ȳ - β₁x̄ Where: ∑ = sum x̄ = mean of x ȳ = mean of y x_i, y_i = individual values ​​of the variables. Where: x_i and y_i are the means of the independent and dependent variables, respectively. i ranges from 1 to n, the number of observations. These equations guarantee the best linear unbiased estimator, according to the Gauss-Markov theorem, assuming homoscedasticity and linearity. ⯁ LINEAR REGRESSION IN MACHINE LEARNING Linear regression is one of the cornerstones of supervised learning. Its simplicity and ability to generate accurate quantitative predictions make it essential in AI systems, predictive algorithms, time series analysis, and automated trading strategies. By applying this model to the RSI, you are literally putting artificial intelligence at the heart of a classic indicator, bringing a new dimension to technical analysis. ⯁ VISUAL INTERPRETATION Imagine an RSI time series like this: Time → RSI    → The regression line will smooth these values ​​and extend them n periods into the future, creating a predicted trajectory based on the historical moment. This line becomes the predicted RSI, which can be crossed with the actual RSI to generate more intelligent signals. ⯁ SUMMARY OF SCIENTIFIC CONCEPTS USED Linear Regression Models the relationship between variables using a straight line. Least Squares Minimizes the sum of squared errors between prediction and reality. Time Series Forecasting Estimates future values ​​based on historical data. Supervised Learning Trains models to predict outputs from known inputs. Statistical Smoothing Reduces noise and reveals underlying trends. ⯁ WHY THIS INDICATOR IS REVOLUTIONARY Scientifically-based: Based on statistical theory and mathematical inference. Unprecedented: First public RSI with least squares predictive modeling. Intelligent: Built with machine learning logic. Practical: Generates forward-thinking signals. Customizable: Flexible for any trading strategy. ⯁ CONCLUSION By combining RSI with linear regression, this indicator allows a trader to predict market momentum, not just follow it. RSI Forecast is not just an indicator — it is a scientific breakthrough in technical analysis technology. ⯁ Example of simple linear regression, which has one independent variable: ⯁ In linear regression, observations ( red ) are considered to be the result of random deviations ( green ) from an underlying relationship ( blue ) between a dependent variable ( y ) and an independent variable ( x ). ⯁ Visualizing heteroscedasticity in a scatterplot against 100 random fitted values ​​using Matlab: ⯁ The data sets in the Anscombe's quartet are designed to have approximately the same linear regression line (as well as nearly identical means, standard deviations, and correlations) but are graphically very different. This illustrates the pitfalls of relying solely on a fitted model to understand the relationship between variables. ⯁ The result of fitting a set of data points with a quadratic function: _______________________________________________________________________ 🥇 This is the world’s first RSI indicator with: Linear Regression for Forecasting 🥇_______________________________________________________________________ _________________________________________________ 🔮 Linear Regression: PineScript Technical Parameters 🔮 _________________________________________________ Forecast Types: • Flat: Assumes prices will remain the same. • Linreg: Makes a 'Linear Regression' forecast for n periods. Technical Information: ta.linreg (built-in function) Linear regression curve. A line that best fits the specified prices over a user-defined time period. It is calculated using the least squares method. The result of this function is calculated using the formula: linreg = intercept + slope * (length - 1 - offset), where intercept and slope are the values ​​calculated using the least squares method on the source series. Syntax: • Function: ta.linreg() Parameters: • source: Source price series. • length: Number of bars (period). • offset: Offset. • return: Linear regression curve. This function has been cleverly applied to the RSI, making it capable of projecting future values ​​based on past statistical trends. ______________________________________________________ ______________________________________________________ ⯁ WHAT IS THE RSI❓ The Relative Strength Index (RSI) is a technical analysis indicator developed by J. Welles Wilder. It measures the magnitude of recent price movements to evaluate overbought or oversold conditions in a market. The RSI is an oscillator that ranges from 0 to 100 and is commonly used to identify potential reversal points, as well as the strength of a trend. ⯁ HOW TO USE THE RSI❓ The RSI is calculated based on average gains and losses over a specified period (usually 14 periods). It is plotted on a scale from 0 to 100 and includes three main zones:   •  Overbought: When the RSI is above 70, indicating that the asset may be overbought.   •  Oversold: When the RSI is below 30, indicating that the asset may be oversold.   •  Neutral Zone: Between 30 and 70, where there is no clear signal of overbought or oversold conditions. ______________________________________________________ ______________________________________________________ ⯁ ENTRY CONDITIONS The conditions below are fully flexible and allow for complete customization of the signal. ______________________________________________________ ______________________________________________________ 🔹 CONDITIONS TO BUY 📈 ______________________________________________________   •  Signal Validity: The signal will remain valid for X bars .   •  Signal Sequence: Configurable as AND or OR . 📈 RSI Conditions: 🔹 RSI > Upper 🔹 RSI < Upper 🔹 RSI > Lower 🔹 RSI < Lower 🔹 RSI > Middle 🔹 RSI < Middle 🔹 RSI > MA 🔹 RSI < MA 📈 MA Conditions: 🔹 MA > Upper 🔹 MA < Upper 🔹 MA > Lower 🔹 MA < Lower 📈 Crossovers: 🔹 RSI (Crossover) Upper 🔹 RSI (Crossunder) Upper 🔹 RSI (Crossover) Lower 🔹 RSI (Crossunder) Lower 🔹 RSI (Crossover) Middle 🔹 RSI (Crossunder) Middle 🔹 RSI (Crossover) MA 🔹 RSI (Crossunder) MA 🔹 MA (Crossover) Upper 🔹 MA (Crossunder) Upper 🔹 MA (Crossover) Lower 🔹 MA (Crossunder) Lower 📈 RSI Divergences: 🔹 RSI Divergence Bull 🔹 RSI Divergence Bear 📈 RSI Forecast: 🔮 RSI (Crossover) MA Forecast 🔮 RSI (Crossunder) MA Forecast ______________________________________________________ ______________________________________________________ 🔸 CONDITIONS TO SELL 📉 ______________________________________________________   •  Signal Validity: The signal will remain valid for X bars .   •  Signal Sequence: Configurable as AND or OR . 📉 RSI Conditions: 🔸 RSI > Upper 🔸 RSI < Upper 🔸 RSI > Lower 🔸 RSI < Lower 🔸 RSI > Middle 🔸 RSI < Middle 🔸 RSI > MA 🔸 RSI < MA 📉 MA Conditions: 🔸 MA > Upper 🔸 MA < Upper 🔸 MA > Lower 🔸 MA < Lower 📉 Crossovers: 🔸 RSI (Crossover) Upper 🔸 RSI (Crossunder) Upper 🔸 RSI (Crossover) Lower 🔸 RSI (Crossunder) Lower 🔸 RSI (Crossover) Middle 🔸 RSI (Crossunder) Middle 🔸 RSI (Crossover) MA 🔸 RSI (Crossunder) MA 🔸 MA (Crossover) Upper 🔸 MA (Crossunder) Upper 🔸 MA (Crossover) Lower 🔸 MA (Crossunder) Lower 📉 RSI Divergences: 🔸 RSI Divergence Bull 🔸 RSI Divergence Bear 📉 RSI Forecast: 🔮 RSI (Crossover) MA Forecast 🔮 RSI (Crossunder) MA Forecast ______________________________________________________ ______________________________________________________ 🤖 AUTOMATION 🤖 • You can automate the BUY and SELL signals of this indicator. ______________________________________________________ ______________________________________________________ ⯁ UNIQUE FEATURES ______________________________________________________ Linear Regression: (Forecast) Signal Validity: The signal will remain valid for X bars Signal Sequence: Configurable as AND/OR Condition Table: BUY/SELL Condition Labels: BUY/SELL Plot Labels in the Graph Above: BUY/SELL Automate and Monitor Signals/Alerts: BUY/SELL Linear Regression (Forecast) Signal Validity: The signal will remain valid for X bars Signal Sequence: Configurable as AND/OR Condition Table: BUY/SELL Condition Labels: BUY/SELL Plot Labels in the Graph Above: BUY/SELL Automate and Monitor Signals/Alerts: BUY/SELL ______________________________________________________ 📜 SCRIPT : RSI Forecast 🎴 Art by  : @Titans_Invest & @DiFlip 👨‍💻 Dev by : @Titans_Invest & @DiFlip 🎑 Titans Invest — The Wizards Without Gloves 🧤 ✨ Enjoy! ______________________________________________________ o Mission 🗺 • Inspire Traders to manifest Magic in the Market. o Vision 𐓏 • To elevate collective Energy 𐓷𐓏
Indicador Pine Script®
por Titans_Invest
3
RSI Signals Multi-Layer RSI System with Classical Divergence**DrFX RSI Signals Fixed** is an advanced RSI-based trading system that combines duration-filtered extreme conditions with classical divergence detection and momentum confirmation. This enhanced version addresses common RSI false signals through multi-layer filtering while adding proper divergence analysis for identifying high-probability reversal points. **Core Innovation & Originality** This indicator uniquely integrates five analytical layers: 1. **Duration-Validated Extreme Zones** - Confirms RSI has remained overbought/oversold for minimum bars within lookback period 2. **Classical Divergence Detection** - Proper implementation comparing swing highs/lows in both price and RSI 3. **Momentum Confirmation Signals** - RSI crossing 50-line after extreme conditions for trend confirmation 4. **Multi-Signal Classification** - Four distinct signal types (Buy, Sell, Strong Buy, Strong Sell, Momentum) 5. **Visual Zone Highlighting** - Background coloring for instant extreme zone identification **Technical Implementation & Improvements** **Enhanced Duration Filter:** Unlike the previous version, this system uses a refined approach: ``` for i = 0 to lookback_bars - 1 if rsi > overbought barsInOverbought := barsInOverbought + 1 ``` This counts actual bars within the lookback period (default 20 bars) where RSI was extreme, requiring minimum duration (default 4 bars) for signal validation. **Classical Divergence Detection:** The system implements proper divergence analysis, a significant improvement over simple delta comparison: **Bullish Divergence Logic:** - Price makes lower low: `low < prevPriceLow` - RSI makes higher low: `rsi > prevRsiLow` - Indicates weakening downward momentum despite lower prices **Bearish Divergence Logic:** - Price makes higher high: `high > prevPriceHigh` - RSI makes lower high: `rsi < prevRsiHigh` - Indicates weakening upward momentum despite higher prices **Signal Generation Framework:** **Primary Signals:** - **Buy Signal**: RSI crosses above oversold (30) after meeting duration requirements - **Sell Signal**: RSI crosses below overbought (70) after meeting duration requirements **Strong Signals:** - **Strong Buy**: Buy signal + bullish divergence confirmation - **Strong Sell**: Sell signal + bearish divergence confirmation **Momentum Signals:** - **Momentum Buy (M+)**: RSI crosses above 50 after recent oversold conditions - **Momentum Sell (M-)**: RSI crosses below 50 after recent overbought conditions **What Makes This Version Superior** **Compared to Standard RSI:** 1. **Duration Requirement**: Prevents signals on brief RSI spikes 2. **Lookback Validation**: Ensures extreme conditions actually occurred recently 3. **Proper Divergence**: Uses swing high/low comparison, not just bar-to-bar deltas 4. **Momentum Layer**: Adds trend confirmation via 50-line crosses **Compared to Previous Version:** 1. **Pine Script v5**: Modern syntax with improved performance 2. **Configurable Parameters**: All values adjustable via inputs 3. **Better Divergence**: Classical divergence logic replaces simplified delta method 4. **Additional Signals**: Momentum confirmations for trend following 5. **Visual Enhancements**: Background coloring and improved signal differentiation 6. **Alert System**: Built-in alert conditions for all signal types **Parameter Configuration** **Customizable Inputs:** - **Overbought Level** (70): Upper threshold, range 50-90 - **Oversold Level** (30): Lower threshold, range 10-50 - **RSI Period** (14): Calculation period, range 2-50 - **Minimum Duration** (4): Required bars in extreme zone, range 1-20 - **Lookback Bars** (20): Period to check for extreme conditions, range 5-100 - **Divergence Lookback** (5): Period for divergence swing comparison, range 2-20 **Optimization Guidelines:** - **Shorter Duration** (2-3): More frequent signals, higher noise - **Longer Duration** (5-7): Fewer signals, better quality - **Smaller Lookback** (10-15): Faster response, may miss context - **Larger Lookback** (30-50): More context, potentially delayed signals **Signal Interpretation Guide** **Visual Signal Hierarchy:** **Light Green Triangle (Buy):** - RSI recovered from oversold - Duration requirements met - Entry on reversal from oversold territory **Light Red Triangle (Sell):** - RSI declined from overbought - Duration requirements met - Entry on reversal from overbought territory **Blue Triangle (Strong Buy):** - Buy signal with bullish divergence - Highest probability long setup - Price made lower low, RSI made higher low **Magenta Triangle (Strong Sell):** - Sell signal with bearish divergence - Highest probability short setup - Price made higher high, RSI made lower high **Tiny Green Circle (M+):** - RSI crossed above 50 after oversold - Momentum confirmation for uptrend - Secondary entry or trend confirmation **Tiny Red Circle (M-):** - RSI crossed below 50 after overbought - Momentum confirmation for downtrend - Secondary entry or trend confirmation **Background Coloring:** - **Light Red Background**: RSI > 70 (overbought zone) - **Light Green Background**: RSI < 30 (oversold zone) **Trading Strategy Application** **Conservative Approach (Strong Signals Only):** 1. Wait for blue/magenta triangles (divergence confirmed) 2. Enter on signal bar close or next bar open 3. Stop loss beyond recent swing high/low 4. Target minimum 2:1 risk/reward ratio **Aggressive Approach (All Signals):** 1. Take light green/red triangles for earlier entries 2. Use momentum circles as confirmation 3. Tighter stops with partial profit taking 4. Scale positions based on signal strength **Momentum Trading:** 1. Use momentum signals (M+/M-) as trend filters 2. Take primary signals aligned with momentum direction 3. Avoid counter-momentum signals in strong trends 4. Exit when opposing momentum signal appears **Multi-Timeframe Strategy:** 1. Check higher timeframe for strong signals 2. Execute on lower timeframe primary signals 3. Use momentum signals for position management 4. Align all timeframe signals for best probability **Optimal Market Conditions** **Best Performance:** - Mean-reverting markets with clear RSI extremes - Range-bound or consolidating conditions - Markets respecting support/resistance levels - Timeframes: 15min to 4H for active trading **Strong Signal Advantages:** - Divergence signals often mark major turning points - Work well at market structure levels - Effective in both trending and ranging markets - Higher success rate justifies waiting for setup **Momentum Signal Benefits:** - Confirms trend direction after extreme readings - Useful for adding to positions - Helps avoid counter-trend trades - Works well in trending markets where reversals fail **Technical Advantages** **Divergence Accuracy:** The improved divergence detection uses proper swing analysis rather than simple bar-to-bar comparison. This identifies genuine momentum shifts where price action diverges from oscillator movement over a meaningful period. **Duration Logic:** The for-loop counting method ensures the system checks actual RSI values within the lookback period, not just whether RSI touched levels. This distinguishes between sustained conditions and brief spikes. **Momentum Filter:** The 50-line crosses after extreme conditions provide an additional confirmation layer, helping traders distinguish between failed reversals (no momentum follow-through) and sustained moves (momentum confirmation). **Risk Management Integration** **Signal Priority:** 1. **Highest**: Strong signals with divergence (blue/magenta triangles) 2. **Medium**: Primary signals without divergence (light green/red triangles) 3. **Confirmation**: Momentum signals (tiny circles) **Position Sizing:** - Larger positions on strong signals (divergence present) - Standard positions on primary signals - Smaller positions or adds on momentum signals **Stop Placement:** - Beyond recent swing structure - Below/above divergence swing low/high for strong signals - Trail stops when momentum signals align with position **Alert System** Built-in alert conditions for: - Buy Signal: RSI buy without divergence - Sell Signal: RSI sell without divergence - Strong Buy Alert: Buy with bullish divergence - Strong Sell Alert: Sell with bearish divergence Configure alerts via TradingView's alert system to receive notifications for chosen signal types. **Important Considerations** **Strengths:** - Multiple confirmation layers reduce false signals - Classical divergence improves reversal detection - Momentum signals add trend-following capability - Highly customizable for different trading styles - No repainting - all signals fixed at bar close **Limitations:** - Duration requirements may cause missed quick reversals - Divergence lookback period affects sensitivity - Not suitable as standalone system - Requires understanding of RSI principles and divergence concepts **Best Practices:** - Combine with price action and support/resistance - Use higher timeframe context for directional bias - Respect overall market trend and structure - Implement proper position sizing based on signal type - Test parameters on your specific instrument and timeframe **Comparison Summary** This enhanced version represents a significant upgrade: - Upgraded to Pine Script v5 modern standards - Proper classical divergence detection (not simplified) - Added momentum confirmation signals - Fully customizable parameters via inputs - Visual background zone highlighting - Comprehensive alert system - Better signal differentiation through color coding The system transforms basic RSI analysis into a multi-dimensional trading tool suitable for various market conditions and trading styles. **Disclaimer**: This indicator is designed for educational and analytical purposes. While the multi-layer filtering and classical divergence detection improve upon standard RSI implementations, no indicator guarantees profitable trades. The duration filtering reduces false signals but may delay entries. Divergence signals, while statistically favorable, can fail in strong trending conditions. Always use proper risk management, position sizing, and stop-loss orders. Consider multiple confirmation methods and market context before making trading decisions. Past performance does not guarantee future results.
Indicador Pine Script®
por DrFXGOD
RSI of RSI Deviation (RoRD)RSI of RSI Deviation (RoRD) - Advanced Momentum Acceleration Analysis What is RSI of RSI Deviation (RoRD)? RSI of RSI Deviation (RoRD) is a insightful momentum indicator that transcends traditional oscillator analysis by measuring the acceleration of momentum through sophisticated mathematical layering. By calculating RSI on RSI itself (RSI²) and applying advanced statistical deviation analysis with T3 smoothing, RoRD reveals hidden market dynamics that single-layer indicators miss entirely. This isn't just another RSI variant—it's a complete reimagining of how we measure and visualize momentum dynamics. Where traditional RSI shows momentum, RoRD shows momentum's rate of change . Where others show static overbought/oversold levels, RoRD reveals statistically significant deviations unique to each market's character. Theoretical Foundation - The Mathematics of Momentum Acceleration 1. RSI² (RSI of RSI) - The Core Innovation Traditional RSI measures price momentum. RoRD goes deeper: Primary RSI (RSI₁) : Standard RSI calculation on price Secondary RSI (RSI²) : RSI calculated on RSI₁ values This creates a "momentum of momentum" indicator that leads price action Mathematical Expression: RSI₁ = 100 - (100 / (1 + RS₁)) RSI² = 100 - (100 / (1 + RS₂)) Where RS₂ = Average Gain of RSI₁ / Average Loss of RSI₁ 2. T3 Smoothing - Lag-Free Response The T3 Moving Average, developed by Tim Tillson, provides: Superior smoothing with minimal lag Adaptive response through volume factor (vFactor) Noise reduction while preserving signal integrity T3 Formula: T3 = c1×e6 + c2×e5 + c3×e4 + c4×e3 Where e1...e6 are cascaded EMAs and c1...c4 are volume-factor-based coefficients 3. Statistical Z-Score Deviation RoRD employs dual-layer Z-score normalization : Initial Z-Score : (RSI² - SMA) / StDev Final Z-Score : Z-score of the Z-score for refined extremity detection This identifies statistically rare events relative to recent market behavior 4. Multi-Timeframe Confluence Compares current timeframe Z-score with higher timeframe (HTF) Provides directional confirmation across time horizons Filters false signals through timeframe alignment Why RoRD is Different & More Sophisticated Beyond Traditional Indicators: Acceleration vs. Velocity : While RSI measures momentum (velocity), RoRD measures momentum's rate of change (acceleration) Adaptive Thresholds : Z-score analysis adapts to market conditions rather than using fixed 70/30 levels Statistical Significance : Signals are based on mathematical rarity, not arbitrary levels Leading Indicator : RSI² often turns before price, providing earlier signals Reduced Whipsaws : T3 smoothing eliminates noise while maintaining responsiveness Unique Signal Generation: Quantum Orbs : Multi-layered visual signals for statistically extreme events Divergence Detection : Automated identification of price/momentum divergences Regime Backgrounds : Visual market state classification (Bullish/Bearish/Neutral) Particle Effects : Dynamic visualization of momentum energy Visual Design & Interpretation Guide Color Coding System: Yellow (#e1ff00) : Neutral/balanced momentum state Red (#ff0000) : Overbought/extreme bullish acceleration Green (#2fff00) : Oversold/extreme bearish acceleration Orange : Z-score visualization Blue : HTF Z-score comparison Main Visual Elements: RSI² Line with Glow Effect Multi-layer glow creates depth and emphasis Color dynamically shifts based on momentum state Line thickness indicates signal strength Quantum Signal Orbs Green Orbs Below : Statistically rare oversold conditions Red Orbs Above : Statistically rare overbought conditions Multiple layers indicate signal strength Only appear at Z-score extremes for high-conviction signals Divergence Markers Green Circles : Bullish divergence detected Red Circles : Bearish divergence detected Plotted at pivot points for precision Background Regimes Green Background : Bullish momentum regime Grey Background : Bearish momentum regime Blue Background : Neutral/transitioning regime Particle Effects Density indicates momentum energy Color matches current RSI² state Provides dynamic market "feel" Dashboard Metrics - Deep Dive RSI² ANALYSIS Section: RSI² Value (0-100) Current smoothed RSI of RSI reading >70 : Strong bullish acceleration <30 : Strong bearish acceleration ~50 : Neutral momentum state RSI¹ Value Traditional RSI for reference Compare with RSI² for acceleration/deceleration insights Z-Score Status 🔥 EXTREME HIGH : Z > threshold, statistically rare bullish ❄️ EXTREME LOW : Z < threshold, statistically rare bearish 📈 HIGH/📉 LOW : Elevated but not extreme ➡️ NEUTRAL : Normal statistical range MOMENTUM Section: Velocity Indicator ▲▲▲ : Strong positive acceleration ▼▼▼ : Strong negative acceleration Shows rate of change in RSI² Strength Bar ██████░░░░ : Visual power gauge Filled bars indicate momentum strength Based on deviation from center line SIGNALS Section: Divergence Status 🟢 BULLISH DIV : Price making lows, RSI² making highs 🔴 BEARISH DIV : Price making highs, RSI² making lows ⚪ NO DIVERGENCE : No divergence detected HTF Comparison 🔥 HTF EXTREME : Higher timeframe confirms extremity 📊 HTF NORMAL : Higher timeframe is neutral Critical for multi-timeframe confirmation Trading Application & Strategy Signal Hierarchy (Highest to Lowest Priority): Quantum Orb + HTF Alignment + Divergence Highest conviction reversal signal Z-score extreme + timeframe confluence + divergence Quantum Orb + HTF Alignment Strong reversal signal Wait for price confirmation Divergence + Regime Change Medium-term reversal signal Monitor for orb confirmation Threshold Crosses Traditional overbought/oversold Use as alert, not entry Entry Strategies: For Reversals: Wait for Quantum Orb signal Confirm with HTF Z-score direction Enter on price structure break Stop beyond recent extreme For Continuations: Trade with regime background color Use RSI² pullbacks to center line Avoid signals against HTF trend For Scalping: Focus on Z-score extremes Quick entries on orb signals Exit at center line cross Risk Management: Reduce position size when signals conflict with HTF Avoid trades during regime transitions (blue background) Tighten stops after divergence completion Scale out at statistical mean reversion Development & Uniqueness RoRD represents months of research into momentum dynamics and statistical analysis. Unlike indicators that simply combine existing tools, RoRD introduces several genuine innovations : True RSI² Implementation : Not a smoothed RSI, but actual RSI calculated on RSI values Dual Z-Score Normalization : Unique approach to finding statistical extremes T3 Integration : First RSI² implementation with T3 smoothing for optimal lag reduction Quantum Orb Visualization : Revolutionary signal display method Dynamic Regime Detection : Automatic market state classification Statistical Adaptability : Thresholds adapt to market volatility This indicator was built from first principles, with each component carefully selected for its mathematical properties and practical trading utility. The result is a professional-grade tool that provides insights unavailable through traditional momentum analysis. Best Practices & Tips Start with default settings - they're optimized for most markets Always check HTF alignment before taking signals Use divergences as early warning , orbs as confirmation Respect regime backgrounds - trade with them, not against Combine with price action - RoRD shows when, price shows where Adjust Z-score thresholds based on market volatility Monitor dashboard metrics for complete market context Conclusion RoRD isn't just another indicator—it's a complete momentum analysis system that reveals market dynamics invisible to traditional tools. By combining momentum acceleration, statistical analysis, and multi-timeframe confluence with intuitive visualization, RoRD provides traders with a sophisticated edge in any market condition. Whether you're scalping rapid reversals or positioning for major trend changes, RoRD's unique approach to momentum analysis will transform how you see and trade market dynamics. See momentum's future. Trade with statistical edge. Trade with insight. Trade with anticipation. — Dskyz, for DAFE Trading Systems
Indicador Pine Script®
por DskyzInvestments
4
RSI Candlestick Oscillator [LuxAlgo]The RSI Candlestick Oscillator displays a traditional Relative Strength Index (RSI) as candlesticks. This indicator references OHLC data to locate each candlestick point relative to the current RSI Value, leading to a more accurate representation of the Open, High, Low, and Close price of each candlestick in the context of RSI. In addition to the candlestick display, Divergences are detected from the RSI candlestick highs and lows and can be displayed over price on the chart. 🔶 USAGE Translating candlesticks into the RSI oscillator is not a new concept and has been attempted many times before. This indicator stands out because of the specific method used to determine the candlestick OHLC values. When compared to other RSI Candlestick indicators, you will find that this indicator clearly and definitively correlates better to the on-chart price action. Traditionally, the RSI indicator is simply one running value based on (typically) the close price of the chart. By introducing high, low, and open values into the oscillator, we can better gauge the specific price action throughout the intrabar movements. Interactions with the RSI levels can now take multiple forms, whether it be a full-bodied breakthrough or simply a wick test. Both can provide a new analysis of price action alongside RSI. An example of wick interactions and full-bodied interactions can be seen below. As a result of the candlestick display, divergences become simpler to spot. Since the candlesticks on the RSI closely resemble the candlesticks on the chart, when looking for divergence between the chart and RSI, it is more obvious when the RSI and price are diverging. The divergences in this indicator not only show on the RSI oscillator, but also overlay on the price chart for clearer understanding. 🔹 Filtering Divergence With the candlesticks generating high and low RSI values, we can better sense divergences from price, since these points are generally going to be more dramatic than the (close) RSI value. This indicator displays each type of divergence: Bullish Divergence Bearish Divergence Hidden Bullish Divergence Hidden Bearish Divergence From these, we get many less-than-useful indications, since every single divergence from price is not necessarily of great importance. The Divergence Filter disregards any divergence detected that does not extend outside the RSI upper or lower values. This does not replace good judgment, but this filter can be helpful in focusing attention towards the extremes of RSI for potential reversal spotting from divergence. 🔶 DETAILS In order to get the desired results for a display that resembles price action while following RSI, we must scale. The scaling is the most important part of this indicator. To summarize the process: Identify a range on Price and RSI Consider them as equal to create a scaling factor Use the scaling factor to locate RSI's "Price equivalent" Upper, Lower, & Mid on the Chart Use those prices (specifically the RSI Mid) to check how far each OHLC value lies from it Use those differences to translate the price back to the RSI Oscillator, pinning the OHLC values at their relative location to our anchor (RSI Mid) 🔹 RSI Channel To better understand, and for your convenience, the indicator includes the option to display the RSI Channel on the chart. This channel helps to visualize where the scaled RSI values are relative to price. If you analyze the RSI channel, you are likely to notice that the price movement throughout the channel matches the same movement witnessed in the RSI Oscillator below. This makes sense since they are the exact same thing displayed on different scales. 🔹 Scaling the Open While the scaling method used is important, and provides a very close view of the real price bar's relative locations on the RSI oscillator… It is designed for a single purpose. The scaling does NOT make the price candles display perfectly on the RSI oscillator. The largest place where this is noticeable is with the opening of each candle. For this reason, we have included a setting that modifies the opening of each RSI candle to be more accurate to the chart's price candles. This setting positions the current bar's opening RSI candlestick value accurately relative to the price's open location to the previous closing price. As seen below. 🔶 SETTINGS 🔹 RSI Candles RSI Length: Sets the Length for the RSI Oscillator. Overbought/Oversold Levels: Sets the Overbought and Oversold levels for the RSI Oscillator. Scale Open for Chart Accuracy: As described above, scales the open of each candlestick bar to more accurately portray the chart candlesticks. 🔹 Divergence Show on Chart: Choose to display divergence line on the chart as well as on the Oscillator. Divergence Length: Sets the pivot width for divergence detection. Normal Fractal Pivot Detection is used. Divergence Style: Change color and line style for Regular and Hidden divergences, as well as toggle their display. Divergence Filter: As described above, toggle on or off divergence filtering. 🔹 RSI Channel Toggle: Display RSI Channel on Chart. Color: Change RSI Channel Color
Indicador Pine Script®
por LuxAlgo
19
RSI Divergence + Sweep + Signal + Alerts Toolkit [TrendX_]The RSI Toolkit is a powerful set of tools designed to enhance the functionality of the traditional Relative Strength Index (RSI) indicator. By integrating advanced features such as Moving Averages, Divergences, and Sweeps, it helps traders identify key market dynamics, potential reversals, and newly-approach trading stragies. The toolkit expands on standard RSI usage by incorporating features from smart money concepts (Just try to be creative 🤣 Hope you like it), providing a deeper understanding of momentum, liquidity sweeps, and trend reversals. It is suitable for RSI traders who want to make more informed and effective trading decisions. 💎 FEATURES RSI Moving Average The RSI Moving Average (RSI MA) is the moving average of the RSI itself. It can be customized to use various types of moving averages, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Relative Moving Average (RMA), and Volume-Weighted Moving Average (VWMA). The RSI MA smooths out the RSI fluctuations, making it easier to identify trends and crossovers. It helps traders spot momentum shifts and potential entry/exit points by observing when the RSI crosses above or below its moving average. RSI Divergence RSI Divergence identifies discrepancies between price action and RSI momentum. There are two types of divergences: Regular Divergence - Indicates a potential trend reversal; Hidden Divergence - Suggests the continuation of the current trend. Divergence is a critical signal for spotting weakness or strength in a trend. Regular divergence highlights potential trend reversals, while hidden divergence confirms trend continuation, offering traders valuable insights into market momentum and possible trade setups. RSI Sweep RSI Sweep detects moments when the RSI removes liquidity from a trend structure by sweeping above or below the price at key momentum level crossing. These sweeps are overlaid on the RSI chart for easier visualized. RSI Sweeps are significant because they indicate potential turning points in the market. When RSI sweeps occur: In an uptrend - they suggest buyers' momentum has peaked, possibly leading to a reversal; In a downtrend - they indicate sellers’ momentum has peaked, also hinting at a reversal. (Note: This feature incorporates Liquidity Sweep concepts from Smart Money Concepts into RSI analysis, helping RSI traders identify areas where liquidity has been removed, which often precedes a trend reversal) 🔎 BREAKDOWN RSI Moving Average How MA created: The RSI value is calculated first using the standard RSI formula. The MA is then applied to the RSI values using the trader’s chosen type of MA (SMA, EMA, RMA, or VWMA). The flexibility to choose the type of MA allows traders to adjust the smoothing effect based on their trading style. Why use MA: RSI by itself can be noisy and difficult to interpret in volatile markets. Applying moving average would provide a smoother, more reliable view of RSI trends. RSI Divergence How Regular Divergence created: Regular Divergence is detected when price forms HIGHER highs while RSI forms LOWER highs (bearish divergence) or when price forms LOWER lows while RSI forms HIGHER lows (bullish divergence). How Hidden Divergence created: Hidden Divergence is identified when price forms HIGHER lows while RSI forms LOWER lows (bullish hidden divergence) or when price forms LOWER highs while RSI forms HIGHER highs (bearish hidden divergence). Why use Divergence: Divergences provide early warning signals of a potential trend change. Regular divergence helps traders anticipate reversals, while hidden divergence supports trend continuation, enabling traders to align their trades with market momentum. RSI Sweep How Sweep created: Trend Structure Shift are identified based on the RSI crossing key momentum level of 50. To track these sweeps, the indicator pinpoints moments when liquidity is removed from the Trend Structure Shift. This is a direct application of Liquidity Sweep concepts used in Smart Money theories, adapted to RSI. Why use Sweep: RSI Sweeps are created to help traders detect potential trend reversals. By identifying areas where momentum has exhausted during a certain trend direction, the indicator highlights opportunities for traders to enter trades early in a reversal or continuation phase. ⚙️ USAGES Divergence + Sweep This is an example of combining Devergence & Sweep in BTCUSDT (1 hour) Wait for a divergence (regular or hidden) to form on the RSI. After the divergence is complete, look for a sweep to occur. A potential entry might be formed at the end of the sweep. Divergences indicate a potential trend change, but confirmation is required to ensure the setup is valid. The RSI Sweep provides that confirmation by signaling a liquidity event, increasing the likelihood of a successful trade. Sweep + MA Cross This is an example of combining Devergence & Sweep in BTCUSDT (1 hour) Wait for an RSI Sweep to form then a potential entry might be formed when the RSI crosses its MA. The RSI Sweep highlights a potential turning point in the market. The MA cross serves as additional confirmation that momentum has shifted, providing a more reliable and more potential entry signal for trend continuations. DISCLAIMER This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
Indicador Pine Script®
por TrendXvn
9
RSI based MAGot it! Here’s some information in English specifically about the **RSI-based Moving Average (RSI-based MA)** that we wrote the Pine Script code for: ### RSI-Based Moving Average (RSI-based MA) An **RSI-based Moving Average (RSI-based MA)** is a technical analysis tool that combines the Relative Strength Index (RSI) with moving averages to provide more insight into market trends and potential reversals. This indicator can be particularly useful for identifying the beginning and end of trends, allowing traders to make more informed decisions. ### How RSI-based MA Works The RSI-based MA indicator calculates the moving average of the RSI values rather than the asset's price itself. In the script you asked for, we implemented two RSI-based moving averages: one for a 1-minute timeframe and another for a 5-minute timeframe. This dual timeframe approach can help traders spot trends more accurately and identify shifts in momentum across different time periods. #### Key Features of RSI-based MA: 1. **Dual Timeframe Analysis**: - The script plots two RSI-based moving averages on the same chart: - **1-minute RSI-based MA**: A moving average calculated based on RSI values over a 1-minute interval. - **5-minute RSI-based MA**: A moving average calculated based on RSI values over a 5-minute interval. - Using different timeframes helps traders see both short-term and longer-term trends simultaneously. 2. **RSI Levels**: - The RSI-based MA plots values between 0 and 100, similar to the RSI itself. Traders can use typical RSI levels, such as 70 (overbought) and 30 (oversold), to identify potential entry and exit points. - **Overbought condition**: When the RSI-based MA moves above 70, it indicates the asset might be overbought, suggesting a potential for price to drop. - **Oversold condition**: When the RSI-based MA drops below 30, it signals that the asset might be oversold, indicating a potential price increase. 3. **Crossovers**: - **Bullish signal**: If the shorter 1-minute RSI-based MA crosses above the longer 5-minute RSI-based MA, this could indicate a new upward trend beginning. - **Bearish signal**: Conversely, if the 1-minute RSI-based MA crosses below the 5-minute RSI-based MA, it could suggest the beginning of a downward trend. ### Potential Advantages - **Smoother Trend Identification**: By applying moving averages to RSI, you can smooth out the short-term fluctuations in RSI values, making it easier to identify the underlying trend. - **Versatility**: The indicator can be customized for different timeframes and settings, allowing it to be tailored to various trading strategies and asset classes. - **Enhanced Signals**: Combining RSI and moving averages helps filter out noise, providing more reliable signals for potential trend changes or continuations. ### Potential Limitations - **Lagging Indicator**: Like most moving averages, RSI-based MAs are lagging indicators. They tend to react after price movements have already begun, which could result in delayed signals. - **False Signals**: In ranging or highly volatile markets, RSI-based MA may give false signals, indicating a trend reversal or continuation that does not occur. - **Should Not Be Used Alone**: It's often recommended to use RSI-based MA alongside other technical indicators (like MACD, Bollinger Bands, or moving average crossovers) to confirm signals and reduce the risk of false readings. ### Conclusion The RSI-based MA can be a powerful tool for traders looking to enhance their understanding of market trends and momentum. By combining RSI with moving averages, traders can smooth out RSI readings and gain a clearer view of the market’s direction. However, as with any indicator, it should be used in conjunction with other tools and strategies to maximize its effectiveness and reduce risk.
Indicador Pine Script®
por Bakhtiyarjaksilikov