RSI Horizontal resistance levels

The RSI Horizontal resistance levels tool automatically plots horizontal price rays on the chart whenever the Relative Strength Index (RSI) enters a user-defined value range, helping traders identify price levels associated with specific momentum states.

Usage

The script is used to spotlight price levels where sentiment has historically shifted or balanced. By default, it tracks the RSI at the 50 level, identifying the "equilibrium" price. Users can adapt the tool for different strategies:

• Trend Pullbacks: Set the level to 50 ± tolerance to find areas where the market finds balance during a trend.
• Overbought Rejections: Set the level to 70 ± tolerance to mark price levels where the market previously reached overbought conditions.
• Oversold Bounces: Set the level to 30 ± tolerance to mark price levels where the market previously reached oversold conditions.

When the RSI enters the specified band, a horizontal ray is drawn from the closing price and extended to the right. To keep the chart clean, the indicator only displays a set number of the most recent rays.

Details

The indicator calculates a raw RSI based on the closing price. Unlike traditional RSI setups that focus on the oscillator itself, this script translates oscillator states back onto the price chart. When the condition RSI >= (Level - Tolerance) and RSI <= (Level + Tolerance) is met, the current closing price is used as the anchor for a new horizontal ray. This allows traders to see if current price action reacts to historical levels that were established during similar momentum conditions.

Settings

• RSI Length: The look-back period used for the RSI calculation (default is 3 for higher sensitivity).
• RSI Level: The central RSI value used to trigger the creation of a horizontal ray.
• Tolerance: The width of the band on either side of the RSI Level. A tolerance of 1 with a level of 50 creates a range from 49 to 51.
• Max Rays: Controls the maximum number of active horizontal levels displayed on the chart.
• Ray Color: Sets the visual color of the horizontal rays.
• Ray Width: Sets the thickness of the horizontal rays.

FAQ

How do I access RSI Horizontal resistance levels?

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

Can I use this for intraday trading?

Yes, by using shorter RSI lengths (like the default 3), the indicator can highlight rapid intraday rotations and short-term pivots.

Why do some lines disappear?

The "Max Rays" setting limits the number of lines on the chart to prevent clutter. When a new level is created that exceeds this limit, the oldest level is automatically deleted.