DreamsDefined

Reverse Engineered RSI - Key Levels + MTF

This indicator overlays 5 Reverse Engineered RSI (RERSI) levels on your main chart window.

The RERSI was first developed by Giorgos Siligardos in the June 2003 issue of Stocks and Commodities Magazine. HPotter provided the initial implementation - from which this script is derived - so all credit to them (see: https://www.tradingview.com/script/Di9aE...).

In simple terms, RERSI plots lines on the price chart that reflect levels of the RSI . E.g. if you set up a RERSI line at a level of 50, then price will touch that line when the standard RSI indicator reads 50. Hopefully that makes sense, but compare the two if it doesn't.

Why is the RERSI useful if it's just plotting RSI values? Well, it simplifies things, and enables you to get a clearer picture of trend direction, RSI support and resistance levels, RSI trading signals, and it keeps your chart window uncluttered.

I've set up 5 RERSI lines to be plotted: Overbought and Oversold Levels, a Middle Level (generally leave this at 50), and then Down/Up Trend Lines . The latter two are loosely based on the work of Constance Brown (and they in turn were influenced by Andrew Brown), who posited that RSI doesn't breach certain levels during trends (e.g. 40-50 is often a support level during an uptrend).

Play around with the levels, and the RSI Length, to see how your particular market reacts, and where key levels may lie. Remember, this isn't meant as a stand-alone system (although I think there's potential to use it as such, especially with price action trading - which I guess wouldn't make it stand-alone then!!), and works best with confirmation from other sources.

Oh, and there's MTF capability, because I think that's useful for all indicators.

Any queries, please let me know.

Cheers,
RJR
Notes de version: v 1.1
- Update so script works with crypto markets (huge thanks to @NeoButane for pointing this out and providing the fix!)
Notes de version: Update to add a Zero Lag Moving Average to smooth the lines. This should make the signals much clearer.
Notes de version: Minor fix.
Script open-source

Dans le véritable esprit de TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par le règlement. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.

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Vous voulez utiliser ce script sur un graphique ?