RSI Impact Heat Map

The RSI Impact Heat Map indicator measures and visualizes the statistical outcome of RSI crossover or crossunder events through a dynamic heatmap. It allows traders to evaluate the subsequent price displacement over a specified duration, helping to identify whether certain RSI levels historically lead to bullish, bearish, or high-volatility environments.

Usage

The script tracks a specific RSI "Event" (Crossover or Crossunder) and measures the "Impact" after a user-defined number of bars. The impact is quantified by the highest and lowest price displacement from the initial trigger price.

The resulting data is plotted on a heatmap table. Each cell in the heatmap represents a range of positive and negative displacement.

• Top Right (Q1): High concentration indicates high volatility and risk, as both positive and negative displacements are significant.
• Top Left (Q2): High concentration suggests a bearish environment with significant negative displacement.
• Bottom Left (Q3): High concentration suggests insignificant price movement (low volatility).
• Bottom Right (Q4): High concentration suggests a bullish environment with significant positive displacement.

Details

Impact is calculated using either ATR multiples or price percentage. For every trigger detected, the script records the maximum move up and down within the lookback window. To ensure the heatmap remains readable and relevant, the range is automatically adjusted using a percentile calculation (e.g., 95th percentile) to filter out extreme outliers that would otherwise compress the main data distribution.

Settings

RSI

• Source: The price source used for RSI calculation.
• Length: The lookback period for the RSI.
• Trigger: Selection between 'Crossover' or 'Crossunder'.
• Trigger Value: The specific RSI level (e.g., 70 or 30) that triggers the impact measurement.

Impact

• Duration: The number of bars after the trigger to monitor for price displacement.
• Reference: Determines if displacement is measured in ATR units or as a percentage of the price.

Display

• Heat Map Size: Defines the granularity of the table (e.g., 50x50 cells). Smaller sizes aggregate data more broadly, while larger sizes provide more detail.
• Outliers Percentile: Sets the threshold for the maximum range of the heatmap to exclude extreme price spikes.
• Background / Heatmap Color: Visual customization for the table and the density indicators.

FAQ

How do I interpret the quadrants in the table? The quadrants provide a summary of the distribution: top-left indicates bearish bias, bottom-right indicates bullish bias, top-right indicates high volatility, and bottom-left indicates low impact.

How do I adjust the granularity of the results? You can change the "Heat Map Size" setting. A value of 50 creates a 51x51 grid; increasing this value provides more granular data points but requires more screen space.

How can I access the RSI Impact Heat Map? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.