Weekly RSI Buy/Sell Signals

The Weekly RSI Buy/Sell Signals indicator is a trend-following tool that identifies potential price reversals and momentum shifts by monitoring Relative Strength Index (RSI) values from the weekly timeframe. By anchoring signals to higher-timeframe data, it helps traders filter out market noise and align their entries with broader market trends.

Usage

The indicator provides visual buy and sell markers directly on the chart based on specific RSI threshold crossings:

• Buy Signals: A "BUY" label appears when the weekly RSI crosses above the oversold threshold (30). This suggests that the asset may be recovering from an undervalued state and gaining upward momentum.
• Sell Signals: A "SELL" label appears when the weekly RSI crosses below the overbought threshold (70). This indicates a potential shift toward bearish momentum after reaching overextended levels.

Because the calculation uses a weekly timeframe, these signals are best suited for long-term swing trading or as a trend filter for shorter-term strategies. The RSI value and threshold levels are also plotted to provide continuous context of the current momentum state.

Details

The script utilizes the request.security function to fetch data from the weekly ("W") timeframe. This ensures that the signals remain consistent regardless of whether the user is viewing a daily, hourly, or even a 5-minute chart.

The underlying logic uses a standard 14-period RSI. The use of higher-timeframe RSI data acts as a natural smoothing mechanism, reducing the frequency of whipsaws often found in lower-timeframe momentum oscillators. By focusing on the 30 and 70 levels, the tool emphasizes major cyclical turns in the market.

Settings

• RSI Length: (Internal) Uses a standard 14-period setting for the Relative Strength Index calculation.
• Overbought Level: (Internal) Set at 70 to identify when the weekly trend is potentially overextended to the upside.
• Oversold Level: (Internal) Set at 30 to identify when the weekly trend is potentially overextended to the downside.

FAQ

How do I access Weekly RSI Buy/Sell Signals?

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

Can I use this on intraday timeframes?

Yes, the indicator is designed to display weekly RSI signals on any chart timeframe (e.g., 1H, 4H, Daily). The signals will only update when the weekly RSI conditions are met.

Are the signals repainting?

The signals are based on weekly closing data fetched via request.security. When used on intraday charts, the current week's signal may fluctuate until the weekly bar closes, but historical signals remain fixed based on completed weekly intervals.