Default is a Cyclic Smoothed RSI with adaptive bands. Smoothing according to the market vibration is applied to the RSI to cut out the noise and false signals. Instead of traditional overbought and oversold lines, bands are plotted by measuring the recent cyclic activity. This creates overbought and oversold regions reflective of the current market, thus more responsive and can identify smaller, quicker turns.
Price will often react in the direction of the broken bands. Timing using this RSI for bullish entries would be looking for bullish price action candle patterns when the rsi crosses above the bottom band and looking for bearish price action candle patterns when the rsi crosses below the top band.
Optional settings available: Traditional RSI Either RSI's with traditional 70/30 bands Alerts for entering overbought and oversold territory
Cheers, PrivacySmurf (Sorry for all the reposts. I'm horrible at complying with the TV script publishing guidelines. I hope I got this one right.) ---------------- To get more in-depth information on the Cyclic-Smoothed RSI, please read Chapter 4: "Fine-tuning Technical Indicators" of the book "Decoding the Hidden Market Rhythm, Part 1" by Lars Von Thienen.
Release Notes
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Version 2: Updated to Pinescript Version 5
To make the script more intuitive I swapped the fill colors on overbought and oversold regions.
Entering overbought territories will typically align with price increases (green fill). Enter oversold territories will typically align with price decreases (red fill).
Best bullish entries on RSI with adaptive bands come when both bands are below (or near) the midline and RSI breaks above. Best bearish entries on RSI with adaptive bands come when both bands are above (or near) the midline and RSI breaks below.
--- Added option to plot midline. Fixed Traditional RSI overbought/oversold fill plot error.
Release Notes
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Version 2.1 Added titles of plots for easy identification and personal modification