RSI chop filter

This demonstrates how you might filter your signals using RSI , but the same technique could be applied to Stochastic RSI and any other oscillator that has overbought and oversold conditions.

Use it as a visual indicator to determine when to enter a trade:

Red = Chop zone (no trade)
Bright red = Tight chop (dear god stay away)
Green = Overbought or oversold (signals permitted)
Bright green = Crossing up/down (take the trade)

To apply the filter, simply add 'and not chop' after your conditions as seen in the commented out example.
Release Notes: Swapping out a variable. A minor improvement.
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?


what if there is no colour?
Cheers m8t !!!
Thanks Colin...great work! Those red squares should keep me from overtrading. ....And I'm also definitely intrigued about how your 5 Minute Trader chart might work with what I'm doing, if I could have access...
Useful and easy to read - just how I like my indicators. Thanks!
Hm, for me it doesnt draw on chart...its not working at all?
Its not bad but you could get more out of it. Changing the RSI length would be great. I notice with current settings its often a bit late.

And what about the moment there are no visuals? Volume weighted RSI would be really cool.
colinmck belle88
@belle88, Cool, then feel free to grab this and tweak it for your needs
JordanBRZ belle88
@belle88, What's the perfect one? :x
Thanks so much for the indicator, loved it
colinmck Holidaya35
@Holidaya35, You're very welcome!
+2 Reply