Example: Graph style - 4th Dimension RSI

The Example: Graph style - 4th Dimension RSI indicator is a visualization tool designed to display the relationship between RSI levels and price changes over time using a scatter-plot style graph.

Usage

The tool can be used to identify how specific RSI levels correlate with historical price momentum. By plotting data points in a non-standard coordinate system, users can observe:

• The clustering of price changes at various RSI levels.
• The momentum of recent price action relative to RSI overbought and oversold thresholds.
• Potential cyclical patterns where price change magnitude shifts as the RSI reaches extremes.

The indicator uses circle plots of varying sizes and colors to represent the progression of time, with the most recent data being more prominent.

Details

This script employs a unique graphing technique by inverting the standard time-series axis. It maps the RSI value to a horizontal offset and the price change to the vertical axis.

• X-Axis (Horizontal): Represents the RSI value (scaled from 0 to 100) using bar offsets.
• Y-Axis (Vertical): Represents the change in price (ta.change(close)).
• Time Representation: A data range of the last 10 periods is tracked. Circles are drawn with a gradient and varying line widths to indicate the age of the data point, where thicker circles represent more recent activity.

Settings

The provided script contains internal constants rather than user-facing inputs, but its behavior is governed by:

• Data Range: Set to 10 periods, determining how many historical scatter points are displayed simultaneously.
• RSI Period: Fixed at 14 periods for calculating the relative strength index.
• Visual Boundaries: Static lines define the visual container and help identify where the RSI values fall within the 0-100 range relative to the chart's price change scale.

FAQ

How do I interpret the horizontal position of the circles?

The horizontal position indicates the RSI value. The far-left side of the boundary represents an RSI of 0, while the far-right side represents 100. Dotted lines are provided to help visualize the 30 (oversold) and 70 (overbought) regions.

What does the vertical position represent?

The vertical position corresponds to the price change. Points above the zero line indicate positive price changes, while points below indicate negative price changes.

How can I get access to Example: Graph style - 4th Dimension RSI?

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