algomojo

Sentimental Smooth RSI

Sentimental RSI helps shorter term discretionary Traders to prepare for their trading decision. It doesn't gives buy or sell signals but guides you to focus on right side of the trade most of the time especially when your holding period is for 2-3 days.

Just like any other indicator, it has whipsaws but responsive and smooth compared to the traditional RSI where the noise factor reduces and helps you to focus on mean reversion trades.

The Color Transition from Red to Green indicates possible mean reversion from negative to a positive trend
The Color Transition from Green to Red indicates possible mean reversion from positive to the negative trend

Indicator suits to understand the underlying sentiment on the higher timeframes like 4h, Daily. Helps you to understand the underlying trend setup during your pre-trade analysis.

Recommended Timeframe. To avoid frequent whipsaws it is a good idea to apply on a higher timeframe like 4 hourly, Daily, Weekly. Avoid applying in lower timeframes.

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.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?