RSI Projection v1

Application of concepts from Constance Brown "Technical Analysis for Trading Professionals", specifically: Chapter 7: Price Projections By Reverse Engineering Indicators, and Chapter 8: Price Objectives Derived From Positive and Negative Reversals In The RSI.

Specifically: I wanted to see if better Exit signals for the RSI could be generated from a basic application of some of the concepts in those chapters, and that is what I've found so far:
  • Exit when the RSI (purple) crosses below the orange line

  • Orange line is forecasted RSI for positive price reversals, blue line is forecasted RSI for negative price reversals

  • From what I can tell, this indicator does not work well during chop/consolidation and ranging periods, generating too many false signals without additional confluence from trending indicators and price analysis

  • This indicator should be considered highly experimental - do not use live trading without proper backtesting and parameter adjustment.

  • Tuning per asset and timeframe is required due to calculation type for highs/lows used for projection calculations
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.


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?