Positive and Negative Reversals in RSI

#12

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#13
here it's my one cent...about RSI...
/*_SECTION_BEGIN("RSI Divrgence Arrow mark");
SetChartOptions( 0, chartShowArrows | chartShowDates );

P = ParamField( "Price field" );
periods = Param( "Periods", 14, 1, 200, 1 );

Overbought = 70;
Oversold = 30;
Centre = 50;

Plot( Overbought, "", colorRed );
Plot( Oversold, "", colorGreen );
Plot( Centre, "", colorWhite, styleDashed );

Plot( RSIa( P, periods ), _DEFAULT_NAME(), ParamColor( "Color", colorcycle ), ParamStyle( "Style" ) );

n = Param( "% Reverse ", 14, 0, 100, 1 );

Buy = Sell = 0;

bi = BarIndex();

Var = Zig( RSI(), n );
t = Trough( RSI(), n, 1 );
p = Peak( RSI(), n, 1 );

onlywhen = Var == p;
pkPrice = SparseCompress(onlywhen, Close);
pkRsi = SparseCompress(onlywhen, p);
Sell = pkPrice > Ref(pkPrice, -1) AND pkRsi < Ref(pkRsi, -1);
Sell = SparseExpand(onlywhen, Sell);
Sy0 = SparseExpand(onlywhen, Ref(pkRsi, -1));
Sy1 = SparseExpand(onlywhen, pkRsi);
pkBi = SparseCompress(onlywhen, bi);
Sx0 = SparseExpand(onlywhen, Ref(pkBi, -1));

onlywhen = Var == t;
thPrice = SparseCompress(onlywhen, Close);
thRsi = SparseCompress(onlywhen, t);
Buy = thPrice < Ref(thPrice, -1) AND thRsi > Ref(thRsi, -1);
Buy = SparseExpand(onlywhen, Buy);
By0 = SparseExpand(onlywhen, Ref(thRsi, -1));
By1 = SparseExpand(onlywhen, thRsi);
thBi = SparseCompress(onlywhen, bi);
Bx0 = SparseExpand(onlywhen, Ref(thBi, -1));

PlotShapes( IIf( Sell, shapeDownArrow, shapeNone ), colorRed, 0 , Var, Offset = -20 );
PlotShapes( IIf( Buy, shapeUpArrow, shapeNone ), colorBrightGreen, 0, Var, Offset = -20 );

// Plot the Lines
FirstVisibleBar = Status( "FirstVisibleBar" );
Lastvisiblebar = Status( "LastVisibleBar" );

for ( b = Firstvisiblebar; b <= Lastvisiblebar AND b < BarCount; b++ )
{
if ( Buy )
Plot( LineArray( Bx0, By0, b, By1 ), "", colorRed, styleThick );
else if ( Sell )
Plot( LineArray( Sx0, Sy0, b, Sy1 ), "", colorBlue, styleThick );
}
_SECTION_END();*/




RSI.jpg
RSI.jpg
ThaNks to epottash...
 
#15
1622288443518.png

X point's are generally "Reverse Candle" or "Pin Bars" & from there we count periods like 2 bar to max 5 bar [ on daily chart ] for price projection, if we spot a NR or PR.

Note: Close values are used for all points in the price projection calculation which is shown in the picture above

Failed signals are the ones, where price projection TGTs are not met & that is where we plot trendline & wait for it's break on the other side, filtered by RSI or "SMA9 on RSI" breaking 60 line in the correct direction ( which is also to be treated as a major resistance or support point )

As long as PR/NR's keep hitting respective projection TGTs, the trend is intact, does not matter even if this is seen in overbought or oversold region of RSI.

Per Andrew, "failure of a buy signal is a sell signal" one of his best Drewism ;)
 
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