Zig Zag High-Low + RSI

1 oct. 2020

This indicator adds to the functionality of Tr0sT's Zig Zag High Low Indicator by adding the RSI value above the higher-high to eyeball whether the current trend (signified by consecutive higher-highs and higher lows or consecutive lower highs and lower lows) is strengthening or weakening.

THEORY / METHODOLOGY:

If the uptrend is strong, the later pivot high will have a greater RSI number than the previous pivot high indicating an opportunity to go long. In a downtrend the lower high should have a lower RSI than the previous lower high indicating an opportunity to go short. If it does not, it is an indication that the trend is weakening.

ACTION:

If the ZigZag has higher highs and Higher lows and a strengthening RSI, look for Long opportunities on the lower time frame. If the ZigZag has lower highs and lower lows and a weakening RSI, look for Short opportunities on the lower time frame.

USAGE:

This methodology works best and produces the most opportunities when the markets are active, i.e. between 6AM-11AM EST

Thanks to Tr0sT for the original ZigZag High-Low indicator.
Tr0sT: tradingview.com/u/Tr0sT/
Zig Zag High Low Indicator:

2 oct. 2020

Notes de version

Fixed an error where sometimes a RSI Value level would not print if there was a minor swing high between the major swing highs

Updated the Screenshot to adhere more to community standards (oops!)

Fixed a few typos in the comments

22 sept. 2021

Notes de version

- Increased Decimal accuracy
- Changed default Zig Zag length to '1'