RSI Algo with alert

The RSI Algo indicator is a momentum-based signal tool that identifies potential trend reversals and continuation points by tracking RSI movement relative to specific overbought and oversold thresholds.

Usage

The Usage section focuses on identifying entry and exit points based on the Relative Strength Index (RSI). Users can utilize the default signals to spot momentum shifts when the RSI crosses the defined upper or lower boundaries.

• Standard Mode: By default, the script generates "Buy" labels when the RSI is rising and crosses the upper threshold, and "Sell" labels when the RSI is falling and crosses the lower threshold.
• Inverse Mode: By enabling the "Inverse Algorithm" setting, the logic flips, allowing traders to seek mean-reversion opportunities where falling below thresholds triggers buys and rising above triggers sells.
• Visual Aids: The script includes optional line plots and labels to highlight specific trend changes directly on the price chart.

Details

The script calculates the standard RSI over a user-defined period. Unlike traditional RSI oscillators that sit in a separate pane, this tool is designed for the price overlay. It monitors whether the RSI is rising or falling over a 1-bar lookback and checks for crossings of the threshold levels.

The "Trend Change" logic ensures that signals are not repeated consecutively if the position state hasn't changed, providing a cleaner chart output. The visual components are offset from the high/low of the bars to remain legible during high volatility.

Settings

• Period: Sets the lookback length for the RSI calculation (Default is 14).
• Upper Threshold: Defines the level at which the RSI is considered overbought or used for signal triggers (Default is 70).
• Lower Threshold: Defines the level at which the RSI is considered oversold or used for signal triggers (Default is 30).
• Inverse Algorithm: When enabled, it flips the buy/sell logic to accommodate different trading styles (e.g., trend following vs. mean reversion).
• Show Lines: Toggles the visibility of the trend line segments on the chart.
• Show Labels: Toggles the visibility of the "Buy" and "Sell" text labels.

FAQ

How do I use the RSI Algo for trend following?

Keep the "Inverse Algorithm" setting disabled. This will trigger signals when momentum is confirmed by the RSI crossing thresholds in the direction of the current move.

Can I set up automated alerts with this script?

Yes, the script includes alert conditions for "Buy Trend", "Sell Trend", and "Trend Change" which can be used to create TradingView alerts.

How do I access RSI Algo?

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