RSI Failure Swing

RSI Failure Swing is the definitive clean build of Wilder's RSI failure swing, run as a four-stage state machine on the oscillator itself. The pane plots a 14-period RSI colored by its side of the 50 midline, with dashed bands at 70 and 30; as a sequence unfolds it draws the swing legs, a dashed fail point line, and labels at the fail point and the higher low or lower high. Detection reacts only to swings confirmed by the Swing Strength window, so marked points do not repaint.

How to Trade the RSI Failure Swing?

• Bull FS: RSI broke above its fail point after holding a higher low above an oversold swing low — the traditional completion trigger.
• Bear FS: the mirror image — RSI broke below its fail point after a lower high beneath an overbought swing high.
• Fail Point Line: while a setup is armed, the dashed line marks the level whose break completes the swing.
• HL / LH labels: the pullback that arms a setup; aggressive entries key off these, conservative ones wait for the break.

Setup and Completed alerts cover both directions.

RSI Failure Swing Settings

• RSI Length (default 14): lookback of the Wilder RSI the swings are read on.
• Source (default close): series the RSI is computed from.
• Overbought Level (default 70) / Oversold Level (default 30): the extremes a sequence must start beyond.
• Swing Strength (default 3): bars required on each side of a turning point; higher values isolate larger structures but confirm later.
• Strict Pullback Rule (default enabled): voids a setup when RSI re-enters the extreme zone, restarting detection.
• Style toggles for the gradient fill, swing structure, fail point line, and both label sets are on by default.

Frequently Asked Questions

How does this differ from Cardwell positive and negative reversals?

Both patterns live on the RSI, but Cardwell positive & negative reversals compare oscillator swings against the prices that produced them and argue for continuation. A failure swing needs no price reference at all, and its message is reversal.

Why must the first swing start beyond 70 or 30?

The opening excursion is what separates a real momentum turn from mid-range noise. The build enforces it literally: bullish sequences anchor only on swing lows below the Oversold Level, bearish ones only on swing highs above the Overbought Level.

Do the labels repaint?

No. A swing point needs Swing Strength bars on each side before it exists, and the state machine advances on confirmed bars only, so a printed label stays put. The cost is confirmation delay, which grows with Swing Strength.