RSI Master

Getting started#

1. 1
   Open TradingView and click Indicators

   Search for "RSI Master SimpleAlgo" in the Community scripts tab.
2. 2
   Add RSI Master to your chart
3. 3
   Keep the defaults

   RSI length 14 with levels at 70 and 30, the same as a standard RSI pane. The zone edges are smoothed over 3 bars.
4. 4
   Add alerts if you want them

   Set them to "Once per bar close".

What you see on the chart#

• The pink line is where overbought begins and the mint line is where oversold begins, in price, right now.
• Each zone is full at its edge and fades away from price over about two ATRs. The fade is only drawing: overbought carries on upward past the glow.
• Grey candles are the middle of the range. They warm toward pink as RSI climbs and cool toward mint as it falls, and are fully lit once price is inside a zone.
• A dot marks the first close into a zone. A small arrow marks the exit, down out of overbought and up out of oversold.

How it works#

RSI#

RSI is the standard Wilder RSI, 14 bars by default, with the same smoothing every charting platform uses, so the number matches the RSI in your pane.

The price behind a level#

RSI on the next bar depends on today's averages and one unknown: the next move. So for any level, the formula can be solved for the move that gets there. Run it for 70 and you have the overbought edge; run it for 30 and you have the oversold edge. A short average keeps the edges calm without hiding the moves that matter.

In and out#

Price is in a zone when RSI is at or past the level. The first bar in gets a dot and the first bar out gets an arrow. When price flickers in and out over a few bars, only the first exit gets an arrow, so a choppy edge doesn't turn into a row of them.

The record#

Overbought means different things on different charts. So each zone entry is judged by what price did next, measured from the entry close: a full ATR against the zone first counts as reversed, a full ATR with it first counts as followed through, and an entry that does neither within ten bars is dropped rather than guessed. The last ten for each zone are kept, and the panel shows the record for the nearer zone. It describes the chart you're looking at; it doesn't predict the next visit.

The panel#

Alerts#

• Overbought: price closed into the overbought zone
• Left overbought: price left it
• Oversold: price closed into the oversold zone
• Left oversold: price left it

Set them to Once per bar close. A zone entry on a live bar can still be undone before the close.

Settings#

How to read it#

1. 1
   Read the distance first

   How many ATRs to overbought or oversold. A trade with room before momentum is stretched is a different trade from one a candle away from the zone.
2. 2
   Then the zone

   Inside the overbought zone is overbought by the exact definition you already use. Whether that means anything for a trade depends on the chart.
3. 3
   Then the record

   It shows what reaching that zone led to on this chart recently. Read the count next to it, and use it alongside the rest of your analysis.
4. 4
   The arrow

   The exit from a zone is the oldest RSI signal: momentum stretched, then let go. It describes what just happened, not what to do.

Timeframes#

Nothing is tied to a timeframe. On a 5 minute chart the zones are a few points away and price visits them several times a session; on a daily chart they can be far away and visits are weeks apart.