Visual RSI

The Visual RSI indicator projects Relative Strength Index (RSI) levels directly onto the price chart to provide a clearer perspective on overbought and oversold conditions relative to price action. By mapping specific RSI thresholds to price levels, it allows traders to identify potential reversal zones without needing to look away from the main chart area.

Usage

The tool is designed to simplify the interpretation of the RSI by visualizing where specific momentum shifts occurred.

• Bullish Signal: A potential buy point occurs when the price reaches or drops below the projected "Low" level (oversold) and begins to break back upward.
• Bearish Signal: A potential sell point occurs when the price reaches or exceeds the "High" level (overbought) and begins to decline.
• Average Line: The median line between the last identified overbought and oversold price points serves as a dynamic equilibrium level.
• Linear Regression: The script also features an optional Linear Regression channel to help identify the broader trend and deviation-based support/resistance.

Details

The script calculates the standard RSI based on a user-defined length. When the RSI crosses the "Oversold" threshold, the current price is captured as a "Low" level. Conversely, when the RSI crosses under the "Overbought" threshold, the price is captured as a "High" level. These levels remain static until a new crossover occurs, creating a stepped visualization of momentum-based price levels. The indicator also incorporates a Linear Regression calculation to provide secondary trend confirmation through standard deviation bands.

Settings

• RSI Length: Determines the lookback period for the RSI calculation (default is 14).
• Oversold: The RSI level used to define the lower price threshold (default is 35).
• Overbought: The RSI level used to define the upper price threshold (default is 65).
• Show Trend Lines: Toggles the display of dashed lines extending from the RSI price levels.
• Display info panels: Enables or disables the labels showing the specific price values for the RSI levels.
• LinReg Length: Sets the lookback period for the Linear Regression channel.
• Deviation: Adjusts the width of the Linear Regression outer bands.
• Display LinReg panels: Toggles the labels for the Linear Regression high, low, and median values.

FAQ

How do I interpret the projected price levels?

The "High" and "Low" levels represent the price points where the RSI last reached its overbought and oversold thresholds. These act as horizontal support and resistance zones based on momentum.

Can this be used on any timeframe?

Yes, the Visual RSI is versatile and can be applied to any timeframe, though it is commonly used on 1-minute and 15-minute charts for scalping and day trading.

How can I access Visual RSI?

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