RSI Hybrid Profile

This is a Hybrid Script designed on the basis of a well know Indicator RSI - Relative strength Index, ATR, Standard Deviations and Medians. Effort is being made to present RSI in a Profile based concept to leverage and elevate trading signals and identify potential trade while effectively managing the RISK.

Trend Colour Coding :-
Green = Bullish
Red = Bearish
Gray = Mean Reversion/ Rangebound Markets

The script includes the following Elements

1) Candlestick chart of RSI of current time frame in lower pane :-

It helps to effectively compare the price action with that of RSI to clearly identify early breakouts or breakdowns in RSI as compared to price chart and identify early trade opportunities as well as Divergences

2) Higher Time Frame RSI :-

The orange line in the lower pane to help take analysis of Higher Timeframe, to evaluate and assess trend in more refined manner.

3) Point of Control Zone :-

The middle horizontal band with colour coding to highlight the Point of Control of the price action based on its relative strength.


4) Black Circles - POC Change Markers - RSI profile Value area Shifts :-

All the Black Circles plotted on chart are RSI Point of Controls, which signal upcoming Trend and should be closely watched as it can help identify wonderful Entry/Exit Opportunities.



5) Value Area :-

The horizontal lines above and below the POC Zones are the Value areas, they are extremely useful to identify the potential support/resistance zones during the trending markets and potential target zones during the mean reverting markets. The width also helps assess the underlying volatility and risk and can help in determining the position size based on it. The setting can be adjusted based on Value area Range Multiplier. 1 is the ideal setting as it represents 1 Standard Deviation of Data.



6) Trailing Stops :-

The Green Trailing line helps as trailing stoploss in buying positions and Red Trailing Line helps as trailing SL in Selling Positions. These are especially useful when price is far away from the value area zones or when volatility is very high. The setting can be adjusted based on trail multiplier in the settings.



Here are the few examples of how to use the script on different asset classes

1) Gold Futures - Exhibiting the use of trend and SL and how to change positions based on retracement and RSI Interpretation.



2)Nifty 50 - Exhibiting the importance of POC , RSI Divergence and Breakout and SL Trail and POC Change Markers



3) Bitcoin/US Dollar - Showing the use of Value areas as support zones and using RSI overbought and oversold regions to manage pullbacks and retracement confirmations.



4) JSW Energy Limited - Stock - Showing the combined use of the scripts elements in trading environment.



Feel Free to use it on Charts and leverage the power of this wonderful Indicator.