colinmck

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?

Comments

what if there is no colour?
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Cheers m8t !!!
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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...
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Useful and easy to read - just how I like my indicators. Thanks!
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Hm, for me it doesnt draw on chart...its not working at all?
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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.
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colinmck belle88
@belle88, Cool, then feel free to grab this and tweak it for your needs
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JordanBRZ belle88
@belle88, What's the perfect one? :x
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Thanks so much for the indicator, loved it
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colinmck Holidaya35
@Holidaya35, You're very welcome!
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