Reverse Cutlers Relative Strength Index On Chart

The Reverse Cutlers Relative Strength Index On Chart indicator is a technical tool designed to reverse-engineer the price required to reach a specific Cutlers RSI value or trigger a signal line crossover. By plotting these levels directly on the price chart, it provides traders with clear, actionable price targets derived from momentum oscillator logic.

Usage

The indicator provides several price-based levels that respond to Cutler's RSI logic. Unlike the standard RSI which uses Wilder's smoothing, Cutler's RSI utilizes Simple Moving Averages (SMA) to eliminate data length dependency and initialization errors.

Traders can use the plotted lines to identify:

• RSI (eq): The price level required for the RSI to remain equal to its previous value.
• Signal Line Crossovers: The price needed to cross the RSI Moving Average (SMA or EMA).
• Market Zones: Price levels corresponding to Bull Critical (80-100), Bull Control (62-80), Midline (50), Bear Control (20-38), and Bear Critical (0-20) zones.
• Test Price RSI: An analysis feature where a user-defined "Test Price" outputs its theoretical RSI value in the info box.

The script includes an optional info box that can display these values for the current bar (fixed once the bar opens) or the next bar (projections that fluctuate with price).

Details

The concept of reverse-engineering RSI was popularized by Constance Brown and Giorgos Siligardos. This implementation specifically uses Cutler’s variation of the RSI.

The core logic rests on the fact that RSI is an oscillator bound between 0 and 100. By isolating the price variable in the RSI formula, the script calculates the exact close required to satisfy specific momentum conditions. This helps in planning entries and exits based on momentum milestones before they are actually reached on the oscillator.

Settings

RSI Settings

• Input data source: The price source used for calculations (default is Close).
• RSI period: The lookback period for the RSI calculation.
• Signal line period: The lookback period for the Moving Average applied to the RSI.
• MA Type: Choose between SMA or EMA for the signal line.

Plot Settings

• Plot results for: Toggle between displaying levels for the "Current bar" or "Next bar".
• RSI (eq) / Signal Line / Midline: Individual toggles to display specific price target lines.
• Test price: A user-defined price to see what its corresponding RSI value would be.
• User alert levels: Custom RSI thresholds (High/Low) that plot as price levels on the chart.

Infobox Settings

• Show Infobox: Toggles the visibility of the data table.
• Infobox size / color: Customization options for the visual appearance of the data table.
• Info results for: Select if the table shows current data or next-bar projections.

Scale & Zone Levels

• Critical/Control Levels: Adjustable RSI values used to define the boundaries of bull and bear market zones.

FAQ

How do I use the "Next bar" projections?

Select "Next bar" in the Plot or Infobox settings. These values are dynamic and will update in real-time as the current price moves, showing you where the next candle needs to close to hit your RSI targets.

Why does this look different from standard RSI?

This script uses Cutler's RSI (SMA-based) rather than Wilder's smoothing. This ensures that the results are more consistent across different chart history lengths and avoids the "warm-up" period required by Wilder's method.

How can I access this indicator?

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