350 rsi swing

The 350 rsi swing indicator is a momentum-based tool designed to identify potential swing trading opportunities by tracking mean reversion signals within the Relative Strength Index (RSI).

Usage

The indicator generates visual signals based on the interaction between a smoothed RSI and specific overbought/oversold thresholds. Traders typically look for the following:

• Buy Signals: Represented by green circles, these appear when the 3-period Simple Moving Average (SMA) of the RSI crosses under the 20 level. This suggests the asset may be entering an oversold state suitable for a bullish swing.
• Sell Signals: Represented by red circles, these occur when the 3-period SMA of the RSI crosses over the 80 level. This indicates the asset may be overbought, potentially signaling a bearish reversal or pullback.

The indicator is best used in trending markets to identify pullbacks or in ranging markets to capture swings between extremes.

Details

The script calculates a standard 3-period RSI based on the closing price. To filter out noise and provide smoother signal generation, it then applies a 3-period Simple Moving Average (SMA) to that RSI value.

The core logic relies on the "crossunder" and "crossover" functions:

1. Overbought Logic: A signal triggers when the smoothed RSI crosses above 80.
2. Oversold Logic: A signal triggers when the smoothed RSI crosses below 20.

By using a very short RSI period (3) combined with a short SMA (3), the indicator reacts quickly to price changes while maintaining a level of smoothing that prevents excessive false signals.

Settings

• Oversold Level: Fixed at 20. This defines the threshold for bullish swing signals.
• Overbought Level: Fixed at 80. This defines the threshold for bearish swing signals.
• RSI SMA: The visual representation of the smoothed RSI line.
• Buy/Sell Plots: Circles that highlight specific crossing points on the oscillator.

FAQ

How do I interpret the circles on the chart?

The circles represent crossover events on the oscillator. A green circle at the 20 level suggests a potential long entry, while a red circle at the 80 level suggests a potential short entry or exit for longs.

On which timeframes does this work best?

The 350 rsi swing is versatile but is most commonly used on daily or 4-hour charts to capture medium-term swing moves.

How can I access the 350 rsi swing?

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