Advanced RSI Analysis

The Advanced RSI Analysis indicator tracks the duration the Relative Strength Index (RSI) spends above or below user-defined thresholds to help identify trend exhaustion and potential market reversals.

Usage

The Usage section focuses on monitoring the time RSI spends in extreme territories. Unlike standard RSI indicators that only show a value, this tool quantifies how long the market has been overbought or oversold.

• Trend Exhaustion: If the RSI remains above 70 or below 30 for an extended number of bars, it may signal that a trend is becoming overextended.
• Divergence Integration: Users can enable regular and hidden divergences to find discrepancies between price action and momentum.
• Duration-Based Alerts: The script can notify you once the RSI has maintained a position beyond a threshold for a specific count of bars, filtering out brief spikes.

Details

The indicator calculates RSI based on a selected timeframe and period. It tracks "Duration" by counting consecutive bars where the RSI value exceeds the Upper Level or falls below the Lower Level.

A unique feature is the dynamic background coloring, which uses a gradient based on the current duration relative to the historical maximum duration, providing a visual heat map of momentum intensity. It also includes a statistics table that displays average and maximum durations to provide historical context for current market conditions.

Settings

RSI Settings

• RSI Timeframe: The timeframe used for RSI calculations.
• RSI Length: The number of bars used for the RSI calculation (default is 14).
• Upper Level: The threshold for overbought conditions (default is 70).
• Lower Level: The threshold for oversold conditions (default is 30).
• Extended Stats: Toggles additional data in the statistics table.

Divergence Settings

• Divergences: Enables regular bullish and bearish divergence labels.
• Hidden: Enables hidden bullish and bearish divergence labels.
• Pivot Lookback Right/Left: Determines the number of bars required to confirm a pivot point for divergence.
• Min/Max Range: Sets the lookback range for identifying divergence between two pivots.

Alerts and Labels

• Duration Alert Threshold: The minimum number of bars the RSI must stay beyond a level before an alert is triggered.
• Show Cross Labels: Toggles visual labels on the chart when RSI crosses the defined thresholds.

FAQ

How do I access the Advanced RSI Analysis?

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

What does "Duration" represent in this script?

Duration represents the number of consecutive candle closes where the RSI value remained above the upper threshold or below the lower threshold.

Can I use this on any timeframe?

Yes, the script includes a multi-timeframe (MTF) setting allowing you to analyze RSI behavior from higher timeframes while viewing lower timeframe price action.

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Note: This indicator is based on the original concept by CryptoSea and has been refactored for optimized performance and visualization.