ZenAndTheArtOfTrading

RSI Swing Signal

This indicator is a tool designed to be used with Steven Hart's RSI Exhaustion strategy. For more information google TheTradingChannel or look him up on YouTube :)

The default RSI settings for this strategy are:

RSI Overbought: 80
RSI Oversold: 20
Length: 7

When the RSI gets above 80, the line will turn red and the script will begin looking for a specific type of engulfing candle to go short. The same is true when the RSI gets below 20, but the line will turn green and look for longs. It is best used as a back-testing aid, but it can also be used to send emails or SMS alerts whenever the conditions are met. It can also be used as an alternative colored RSI indicator by removing the signals in the settings menu and changing the RSI parameters to whatever you normally use. This can aid in RSI divergence and overbought/sold strategies.

Entries:

The bright green and bright red lines represent the first type of engulfing candle.
The dark green and red lines represent the second type of engulfing candle.

Some pairs perform best with only one of these entries, while others work fine with both.

This is a counter-trend or consolidation strategy, and is best used in combination with trend-continuation or trend-following strategies. As always, make sure you back-test it before you use it to trade as it works better on some pairs than others.
Release Notes: Fixed script picking up some invalid engulfing candles.
Release Notes: Added alert functionality.
Release Notes: Added strategy back-testing results.
Release Notes: Here is a companion indicator I made for this oscillator which plots your entry, SL and TP to the chart:

CLICK HERE TO SEE COMPANION INDICATOR
Release Notes: Minor improvements.
Release Notes: Minor improvements
Release Notes: Minor improvements
Release Notes: Updated to Pine Script version 4

My Resources Hub: https://theartoftrading.com
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FREE Pine Script Basics Course: http://rebrand.ly/zpsbc
Pine Script MASTERY Course: http://rebrand.ly/zpsmc
My Indicators & Strategies: http://rebrand.ly/zmisc
Open-source script

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.

Want to use this script on a chart?