Point and Figure (PnF) RSI

The Point and Figure (PnF) RSI indicator provides a specialized Relative Strength Index calculation based on Point and Figure charting logic to filter out market noise and focus on significant price movements. By utilizing an internal P&F engine, this tool allows traders to view RSI values derived from filtered price columns rather than standard time-based bars, making it easier to identify core trend shifts and support/resistance levels.

Usage

The Point and Figure (PnF) RSI can be used to identify overbought and oversold conditions in a way that ignores insignificant price fluctuations. Traders can choose between two main calculation methods:

• PNF type: Calculates RSI based on the closing price of each P&F column. This is ideal for identifying broader trend exhaustion.
• RENKO type: Calculates RSI on every price change according to the number of boxes filled. This provides a more granular view of momentum.

For example, using the "RENKO type" with a reversal setting of 2 creates an output similar to a Renko-based RSI, which is highly effective for scalping or following strong trends.

Details

Point and Figure (P&F) charting is a time-independent method that focuses purely on price action. This script implements its own P&F engine to determine columns of "X"s (rising prices) and "O"s (falling prices) based on user-defined box sizes and reversal amounts. The RSI is then applied to these filtered data points. This implementation ensures the script is non-repainting and operates directly on the time chart while maintaining P&F logic.

Settings

PnF Configuration

• Method: Selects the box scaling method: User Defined, ATR, Traditional, or Percentage.
• Atr Period: Sets the lookback period for the ATR-based dynamic box size.
• Box Size: Sets a fixed price value for the box when "User Defined" is selected.
• Percentage %: Sets the box size as a percentage of the current price.
• Reversal: The number of boxes required to change the column direction (default is 3).
• Source: Determines whether the engine uses 'close' or 'high/low' prices.

RSI Settings

• Length: The number of P&F data points used in the RSI calculation.
• Overbought Level: The threshold for overbought conditions (default 80).
• Oversold Level: The threshold for oversold conditions (default 20).
• Type: Chooses between 'PNF type' (column-based) or 'RENKO type' (box-based) calculation.

FAQ

How do I interpret the different box size methods?

The "Traditional" method uses a standard predefined table based on price ranges, while "ATR" and "Percentage" adjust the sensitivity dynamically based on volatility or price levels.

What is the advantage of using P&F RSI over standard RSI?

Standard RSI reacts to every candle, regardless of how much price actually moved. P&F RSI only updates when a significant price threshold (the box size) is reached, effectively filtering out "market noise."

How can I access Point and Figure (PnF) RSI?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.