// Created by UCSgears based on Larry Conner's RSI 2 Strategy on 8/31/2014 study(title="UCS_Larry Conner's RSI 2 Strategy", shorttitle="UCS_LC_RSI-2") // inputs source = close rsilength = input(2, minval=1, title="RSI Length") os = input (10, minval = 1, title = "oversold") ob = input (90, minval = 1, title = "overbought") malength1 = input(50, minval=1, title="SMA1 Length") malength2 = input(200, minval=1, title="SMA2 Length") HVlength = input(100, minval=1, title="HV Length") ADXlength = input(10, minval=1, title="ADX Length") lensig = input(14, title="ADX Smoothing", minval=1, maxval=50) vmalength = input(21, minval=1, title="Volume SMA Length") //Calculation //RSI_2 up = rma(max(change(source), 0), rsilength) down = rma(-min(change(source), 0), rsilength) rsi = down == 0 ? 100 : up == 0 ? 0 : 100 - (100 / (1 + up / down)) plot(rsi, color=purple) band1 = hline(ob) band0 = hline(os) fill(band1, band0, color=purple, transp=90) //Moving Average SMA200 = sma(source, malength2) SMA50 = sma(source, malength1) //Historical Volatility annual = 365 per = isintraday or isdaily and interval == 1 ? 1 : 7 hv = 100 * stdev(log(close / close), HVlength) * sqrt(annual / per) //Volume Condition VSMA21 = sma(volume, vmalength) //ADX adxup = change(high) adxdown = -change(low) trur = rma(tr, ADXlength) plus = fixnan(100 * rma(adxup > adxdown and adxup > 0 ? adxup : 0, ADXlength) / trur) minus = fixnan(100 * rma(adxdown > adxup and adxdown > 0 ? adxdown : 0, ADXlength) / trur) sum = plus + minus adx = 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), lensig) //Definition //Stock Qualification sq = (adx > 30 and hv > 30 and VSMA21 > 250000) ? 1 : 0 //Buy Qualification buy = (SMA50 > SMA200 and rsi < os) ? 1 : 0 //Sell Qualification sell = (SMA50 < SMA200 and rsi > ob) ? 1 : 0 //Plot plotchar(sell, title="i", char='S', location=location.top, color=red, transp=0, offset=0) plotchar(buy, title="i", char='B', location=location.bottom, color=green, transp=0, offset=0) //Added in BackGround High-lighting noTrade = buy == 0 and sell == 0 bgcolor(noTrade ? white : na, transp=50) bgcolor(sell ? red : na, transp=60) bgcolor(buy ? green : na, transp=60)
You can get this for free - http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:rsi2
I have used a extensively modified version of this. Back in the first quarter of 2014, Its way too intense, Two Time Frames combined for signals. And added in many filters. Mostly used it only on Strong Trending Stocks. Not something that moves sideways like this. Was really profitable, with my scan.
I still use this in a way to trade Pullbacks, but its totally modified, doesn't even have any of the above mentioned parameters in my scan codes.
Btw, Chris Moody has done a better version of this. He also has a tons of comments you can learn to trade this, Ignore THIS.
This generates enough false signals. I Agree, its the traders responsibility to trade responsibly. I have my edge ignoring a false signal. You need to find yours.
For example. Difference between LB Squeeze and my Squeeze (not published) Little different, but I prefer looking at less smoother version
Difference between TVI published vs what I look at. Trust me, People can spend closer to a grand for this same information in a fancy package.
The Custom ATR - Keltner channel can be closer to 600 bucks, with a fancy pdf, showing you settings.
Worst of all, Momentum Histogram / Momentogram with settings can be 500 bucks.
Trust me, I don't buy them. I code them and figure out a closer version, using mostly free tools.
Tradingview is offering the CRSI indicator *, but you can't see the Pinescript code which this indicator uses and therefore I can't build any advanced custom alerts with it. Could you create a CRSI indicator for the Tradingview community with your 'our own tweaks to it. So that you don't get bitten by any law suits'? :)
Here is some code: