RSI+ (Overbought/Oversold Indicator)
Aug 25, 2017
The RSI+ (Overbought/Oversold Indicator) tool identifies and highlights extreme market conditions by plotting signals directly on the price chart when the Relative Strength Index crosses user-defined thresholds.
Usage
The Usage section focuses on identifying potential exhaustion points or trend strength. When the RSI value crosses above the "Overbought" threshold, a red downward triangle appears above the bar, suggesting the market may be overextended to the upside. Conversely, when the RSI crosses below the "Oversold" threshold, a green upward triangle appears below the bar, indicating the market may be overextended to the downside.
These signals are commonly used for:
- Identifying potential exit points for existing trades.
- Anticipating pullbacks or mean-reversion moves.
- Confirming the presence of high-momentum impulsive trends.
Details
The script calculates a standard Relative Strength Index (RSI) based on the closing price of the bars. Unlike traditional RSI oscillators that appear in a separate pane, this indicator overlays signals directly on the main chart for better visual integration with price action. It includes a specific toggle for real-time calculation to control how signals appear on active bars versus historical data.
Settings
- RSI Length: Determines the number of bars used to calculate the RSI (default is 14).
- RSI Overbought: Sets the upper threshold value (default is 70) that triggers an overbought signal.
- RSI Oversold: Sets the lower threshold value (default is 30) that triggers an oversold signal.
- Draw On Real-Time Bars: A boolean toggle that controls whether signals should be plotted on the current, unconfirmed live bar.
FAQ
How do I use the alerts for this indicator?
You can set up alerts using the built-in alert conditions. The script provides three options: a general alert for any threshold cross, a specific alert for Overbought conditions, and a specific alert for Oversold conditions.
Can I change the visual style of the signals?
Yes, the shape, color, and location of the triangles can be adjusted via the "Style" tab in the indicator settings menu on TradingView.
How can I access RSI+ (Overbought/Oversold Indicator)?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
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