OPEN-SOURCE SCRIPT

RSI ATR Range [SS]

Hey everyone,

Over the course of the last year I had a bunch of requests to do something with RSI. I did do an RSI expected move plotter, but the requests were to overhaul RSI and make it better I guess.

So here is my attempt!

This is the RSI ATR plotter. Its similar to my RSI expected move plotter, however, it gives you the ATR ranges associated with the current RSI value. This allows you to conceptualize RSI in a different way. Instead of looking for "oversold" over "overbought", you can actually just see the expected high to open range and the expected open to low range based on the current RSI.

This will allow you to determine such things as:

a) Is it likely to be bullish?
b) Is it likely to be bearish?
c) The average move, in a dollar amount, associated with this RSI.

In addition to presenting RSI in terms of ranges as opposed to the actual RSI value, the indicator will also signal likely reversal areas. Whenever there is a huge spike in RSI and range, whether it be up or down, this generally corresponds to an imminent reversal. The indicator is programmed to recognize this and plot little grey circles to notify you of an impending reversal.

Let's take a look at some reversal examples using NVDA:

istantanea

In the chart above, we can see that the RSI signaled a reversal. As it was part of a downtrend, the reversal was bullish.

Let's look at a top reversal:
istantanea

The chart above shows a likely downside reversal.

And some little bounce reversals here and there:
istantanea

In addition to showing you the ATR range and reversals, the indicator will show you the RSI in a bar graph format:

istantanea

You won't be able to look for RSI divergences, if you are a believer of those. However, you can definitely visualize them in the ATR ranges which are directly affected by the RSI readings.

Aspects of the indicator:

Bull ranges are displayed in green.
Bear ranges are displayed in red.
When green is present we know its entering or currently in a bullish RSI range:

istantanea

Inversely, when it starts to shift red, we know we are entering a bearish RSI range:

istantanea

There is a border that circles the range. It will be green when we are in a bullish range and red when we are in a bearish range. In addition to these 2 signals, the RSI bar chart itself will turn green in bullish ranges, and red in bearish ranges.

Here is bullish:
istantanea

Here is bearish:
istantanea

Customizability

You can customize the Source input for the RSI (default is close). As well as the length (default is 14).
The ATR length is defaulted to 500. My suggestion is to leave this be. You can increase it but I would not suggest decreasing it as it may omit some of the RSI ranges from its history.


And that is the indicator my friends! Hope you enjoy!

As always, safe trades!

Oscillators

Script open-source

In pieno spirito TradingView, l'autore di questo script lo ha pubblicato open-source, in modo che i trader possano comprenderlo e verificarlo. Un saluto all'autore! È possibile utilizzarlo gratuitamente, ma il riutilizzo di questo codice in una pubblicazione è regolato dal nostro Regolamento. Per aggiungerlo al grafico, mettilo tra i preferiti.

Vuoi usare questo script sui tuoi grafici?


For real-time updates and premium indicators, consider joining my group at: patreon.com/steversteves
Anche su:

Declinazione di responsabilità