Parabolic RSI Strategy [ChartPrime × PineIndicators]

This strategy combines the strengths of the Relative Strength Index (RSI) with a Parabolic SAR logic applied directly to RSI values.
Full credit to ChartPrime for the original concept and indicator, licensed under the MPL 2.0.

It provides clear momentum-based trade signals using an innovative method that tracks RSI trend reversals via a customized Parabolic SAR, enhancing traditional oscillator strategies with dynamic trend confirmation.

How It Works
The system overlays a Parabolic SAR on the RSI, detecting trend shifts in RSI itself rather than on price, offering early reversal insight with visual and algorithmic clarity.

Core Components
1. RSI-Based Trend Detection

• Calculates RSI using a customizable length (default: 14).
  
• Uses upper and lower thresholds (default: 70/30) for overbought/oversold zones.
  

2. Parabolic SAR Applied to RSI

• A custom Parabolic SAR function tracks momentum within the RSI, not price.
  
• This allows the system to capture RSI trend reversals more responsively.
  
• Configurable SAR parameters: Start, Increment, and Maximum acceleration.
  

3. Signal Generation

• Long Entry: Triggered when the SAR flips below the RSI line.
  
• Short Entry: Triggered when the SAR flips above the RSI line.
  
• Optional RSI filter ensures that:
  Long entries only occur above a minimum RSI (e.g. 50).
  Short entries only occur below a maximum RSI.
  
• Built-in logic prevents new positions from being opened against trend without prior exit.
  

Trade Modes & Controls

• Choose from:
  Long OnlyShort OnlyLong & Short
• Optional setting to reverse positions on opposite signal (instead of waiting for a flat close).
  

Visual Features
1. RSI Plotting with Thresholds

• RSI is displayed in a dedicated pane with overbought/oversold fill zones.
  
• Custom horizontal lines mark threshold boundaries.
  

2. Parabolic SAR Overlay on RSI

• SAR dots color-coded for trend direction.
  
• Visible only when enabled by user input.
  

3. Entry & Exit Markers

• Diamonds: Mark entry points (above for shorts, below for longs).
  
• Crosses: Mark exit points.
  

Strategy Strengths

• Provides early momentum reversal entries without relying on price candles.
  
• Combines oscillator and trend logic without repainting.
  
• Works well in both trending and mean-reverting markets.
  
• Easy to configure with fine-tuned filter options.
  

Recommended Use Cases

• Intraday or swing traders who want to catch RSI-based reversals early.
  
• Traders seeking smoother signals than price-based Parabolic SAR entries.
  
• Users of RSI looking to reduce false positives via trend tracking.
  

Customization Options

• RSI Length and Thresholds.
  
• SAR Start, Increment, and Maximum values.
  
• Trade Direction Mode (Long, Short, Both).
  
• Optional RSI filter and reverse-on-signal settings.
  
• SAR dot color customization.
  

Conclusion
The Parabolic RSI Strategy [ChartPrime × PineIndicators] is an innovative, non-repainting momentum strategy that enhances RSI-based systems with trend-confirming logic using Parabolic SAR. By applying SAR logic to RSI values, this strategy offers early, visualized, and filtered entries and exits that adapt to market dynamics.

Credit to ChartPrime for the original methodology, published under MPL-2.0.