RSI Dynamic Bands

█ OVERVIEW
The "RSI Dynamic Bands" indicator is a variant of the Relative Strength Index (RSI) oscillator that brings its signals directly onto the price chart. It displays dynamic bands around the price, adjusted based on RSI levels, enabling easy identification of potential overbought or oversold conditions. The indicator also integrates a multi-timeframe RSI table, facilitating the analysis of trend strength across different timeframes.

█ CONCEPTS
The "RSI Dynamic Bands" indicator is designed to simplify the interpretation of price levels in the context of support and resistance zones, which can be correlated with other technical indicators and RSI values. Since the price itself does not display RSI values, a table showing RSI for four selected timeframes has been added, allowing traders to quickly assess trend strength across different time intervals. The most effective approach is to combine the indicator with other technical analysis tools, such as Fibonacci levels or pivot points, to confirm signals when the price approaches the bands and RSI values indicate a potential reversal.

Band Calculation

The bands are calculated based on the current closing price and RSI values, incorporating dynamic scaling to better adapt to market conditions. The formulas for the bands are as follows:
• Upper Band: close + (rsiUpper - rsi) * scaleFactor, where rsiUpper is the upper RSI level (default: 70), and scaleFactor accounts for market volatility.
• Lower Band: close + (rsiLower - rsi) * scaleFactor, where rsiLower is the lower RSI level (default: 30).
• Midline: The arithmetic average of the upper and lower bands: (upperBand + lowerBand) / 2.
Why Scaling? Without scaling, the bands would be chaotic and jagged, making them difficult to interpret. Scaling smooths the bands, making them wider during periods of high volatility and narrower during consolidation, better reflecting potential support and resistance levels.

Indicator Features

• Dynamic Price Bands: The bands adapt to market conditions, facilitating the identification of key price levels.
• Multi-Timeframe RSI Table: Displays RSI values for four selected timeframes (default: 15m, 1h, 4h, Daily), enabling comparison of trend strength across different perspectives.
• Style Customization: Users can adjust band colors, line thickness, and toggle the visibility of bands, fills, and the table.

How to Set Up the Indicator

1 — Add the "RSI Dynamic Bands" indicator to your TradingView chart.
2 — Configure parameters in the settings, such as RSI length, upper/lower levels, and scaling multiplier, to match your trading style.
3 — Enable or disable the display of bands, fills, or the RSI table based on your needs.
4 — Adjust band and table colors in the input section and line thickness in the "Style" section to better align the indicator with your chart.

█ OTHER SECTIONS
FEATURES
• RSI Length: The period for calculating RSI (default: 14).
• RSI Levels: Thresholds for overbought (default: 70) and oversold (default: 30).
• Scaling Multiplier: Adjusts bands based on market volatility (default: 0.15).
• Table Timeframes: Select four timeframes for the RSI table (default: 15m, 1h, 4h, Daily).
• Style Options: Customize band colors, fills, table, and line thickness.

HOW TO USE

Add the indicator to your chart, configure the parameters, and observe price interactions with the bands to identify potential entry and exit points. The RSI table allows you to compare RSI values across different timeframes, aiding in trading decisions. The most effective approach is to combine the indicator with other technical analysis tools, such as Fibonacci levels or pivot points, to confirm signals when the price approaches the bands and RSI values indicate a potential reversal.

Trading Strategies:

• Scalping: Use lower timeframes (e.g., 5m, 15m) in the RSI table to quickly identify short-term lows and highs. Wait for the price to approach the lower band in the RSI oversold zone, with RSI on lower timeframes starting to rise, and other tools, such as Fibonacci levels (e.g., 38.2%) or pivot points, confirming support.
• Medium-Term Trading: Focus on 1h and 4h timeframes. Look for confirmation of a low on a lower timeframe (e.g., 1h), where RSI indicates oversold conditions or starts rising, then check if RSI on a higher timeframe (e.g., 4h) confirms the trend. Confirmation from other tools, such as a Fibonacci level (e.g., 50%) or pivot point near the bands, strengthens the signal.
• Long-Term Trading: Use Daily and higher timeframes (e.g., Weekly). Wait for all relevant timeframes to confirm a low (e.g., RSI near oversold and price at the lower band), with lower timeframes (e.g., 4h) showing rising RSI. Other tools, such as Fibonacci levels (e.g., 61.8%) or pivot points near the bands, can further confirm a trend reversal signal.