Let's take the classic Relative Strength Index (RSI) and give it couple of modern upgrades - the results are better visuals with improved signals and trade decision support:
Options and features: - Dual period: look at the short term RSI vs a backdrop of a longer period RSI (expressing the longer-term "prevailing sentiment") - get clearer "re-entry" points in long bull or bear runs - Longer period RSI has a "Step" option - since what we won't be really interested in the fractions, but more of the broad "strength" of the sentiment (weak, medium..) - default set to a step of 5. please experiment with what works best for you. - Option to make the RSI volume-weighted. (On by default) - won't say much here, but possibly this is the biggest and most important added feature for those keen on the combined price - volume effect (and Wyckoff'ians) - Smoothing option -- i would keep this set to 3 to avoid extra lag due to the smoothing - scaled to +100 / -100 with zero as the signal line - that's how i like oscillators to work - Adjustable optional overbought / oversold levels - can also be used to also mark strong up/down levels - designed for the "visually oriented" -- like me :) - code is open and commented
What Values to use: many setting combinations possible. play around and find your sweet spot based on what/how you trade. for me, i usually prefer what i set as defaults in the study. tip: if you set Length = 14, smoothing = 1, Sent. factor =1, Vol Weighted = No, you're back (almost) with a classic RSI - the only difference would be that i use Weighted Moving Average in my calculation of the RSI (i tend to believe WMA is the most naturally-suited for looking at "market price" data series)
Please feel free to use, share or give feedback.
Phát hành các Ghi chú
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- added an up/down signal for when the RSI line changes color (i.e, direction). Note that the signal will be shifted by -1 bar, and will plot after the bar closes if it's triggered
Great indicator, I'm using here in Brazil with mini indice,(IBOV) and it's working wonderfull! Thanks for sharing with us . For that particular mini indice I'm using different configuration, is 14-3-4-5 and without sentiment. It's more clean and easy to understand (for me). I'd like to show the print of my screen, but I dont know how, I'm new here with TradingView.
I thought twice and started to do tests with the sentiment, because it has indicated strong or false entries in my last studies that I did today. thanks
nagarajbr12345
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A good indicator which gives entry and exit more or less accurately................
lucasgardel930
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Hi, i just found this script, it's great! Thanks for your job and for sharing it. If you want i can help you to make a backtesting strategy on pinescript.
asrr
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Really intelligent person you are very nice indicators you have framed 👍
RedKTrader
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@ajaytau, thank you. i Appreciate your feedback
fafpo_invest
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Just to leave a BIG thanks !!! 🙏 Using this awesome RSI with your ribbon script !! Top 🚀
RedKTrader
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@fafpo_invest, you're most welcome.. glad you found this work useful and good luck to you.