As author suggests, / divergences generated by SRSI are not as effective during strong trends. To avoid fading an established trend, the system is used in conjunction with a trend confirmation tool like indicator.
You can configure the OB/OS levels, default are 70/30.
The slow , TASC 2015-07
List of my public indicators: http://bit.ly/1LQaPK8
List of my app-store indicators: http://blog.tradingview.com/?p=970
List of my indicators at Appstore: http://blog.tradingview.com/?p=970
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// // @author LazyBear // // List of my public indicators: http://bit.ly/1LQaPK8 // List of my app-store indicators: http://blog.tradingview.com/?p=970 // study("Apirine Slow RSI [LazyBear]", shorttitle="ASRSI_LB", overlay=false, precision=3) periods = input( 6, title="Smoothing", minval=1, maxval=100 ) smooth = input( 14, title="RSI Length", minval=1, maxval=100 ) price = input(close, title="Source") calc_wima(src, length) => MA_s=(src + nz(MA_s * (length-1)))/length MA_s r1 = ema( price, periods ) r2 = iff( price > r1, price - r1, 0 ) r3 = iff( price < r1, r1 - price, 0 ) r4 = calc_wima( r2, smooth ) r5 = calc_wima( r3, smooth ) rr = iff( r5 == 0, 100, 100 - ( 100 / ( 1 + ( r4 / r5 ) ) ) ) obl=input(70, title="OB Level") ovl=input(30, title="OS Level") obl1=hline(obl, title="OB", color=gray), osl1=hline(ovl, title="OS", color=gray) fill(obl1,osl1, color=gray, transp=80, title="RegionFill") hline(50, title="MidLine", color=gray) plot( rr, title="SlowRSI", color=red, linewidth=2 )