mfox
Member
I originally found this little beauty on TradingView, written by WhenToTrade. It combines the dominant cycle length to create adaptive RSI overbought/oversold bands for more responsive signals.
The image was taken from WhenToTrade's own listing here. However, I've found it works perfectly fine on any time frame, for general stocks as well as crypto. I have been combining it with the Volatility Box and a simple MACD. Today I used this combination and pulled a 20 minute, 80% profit from EGOC.
For my next trick, I'll be attempting to convert one of WhenToTrade's other indicators, the Detrended Rhythm Oscillator, which gives insight into the proper dominant cycle to use, accounting for time frame.
Enjoy.
Code:
# Cyclic RSI
# Origanlly found on Tradingview: https://www.tradingview.com/v/TmqiR1jp/
# Shout out to WentToTrade for the amazing indicator.
# Written in ThinkScript by mfox
# The cyclic smoothed RSI indicator is an enhancement of the classic RSI , adding
# additional smoothing according to the market vibration,
# adaptive upper and lower bands according to the cyclic memory and
# using the current dominant cycle length as input for the indicator.
# The cRSI is used like a standard indicator. The chart highlights trading signals where the signal line # crosses above or below the adaptive lower/upper bands. It is much more responsive to market moves than the basic RSI.
# The indicator uses the dominant cycle as input to optimize signal, smoothing and cyclic memory. To get more in-depth information on the cyclic-smoothed RSI indicator, please read Chapter 4 "Fine tuning technical indicators" of the book "Decoding the Hidden Market Rhythm, Part 1" available at your favorite book store.
declare lower;
def src = close;
input domcycle = 20;
def cyclelen = domcycle / 2;
def vibration = 10;
def leveling = 10.0;
def cyclicmemory = domcycle * 2;
input RSIOversold = 30;
input RSIOverbought = 70;
plot h1 = RSIOversold;
h1.SetDefaultColor(Color.WHITE);
h1.SetPaintingStrategy(PaintingStrategy.DASHES);
h1.SetLineWeight(1);
plot h2 = RSIOverbought;
h2.SetDefaultColor(Color.WHITE);
h2.SetPaintingStrategy(PaintingStrategy.DASHES);
h2.SetLineWeight(1);
def torque = 2.0 / (vibration + 1.0);
def phasingLag = (vibration - 1.0) / 2.0;
script nz {
input data = 0;
def ret_val = if IsNaN(data) then 0 else data;
plot return = ret_val;
}
script rma {
input src = 0;
input length = 0;
def alpha = 1 / length;
def sum = alpha * src + ( 1 - alpha) * nz(sum[1]);
plot return = sum;
}
script change {
input data = 0;
plot return = data - GetValue(data, 1);
}
def up = rma(Max(change(src), 0), cyclelen);
def down = rma(-Min(change(src), 0), cyclelen);
def rsi = if down == 0 then 100 else if up == 0 then 0 else 100 - 100 / (1 + up / down);
def crsi = torque * (2 * rsi - rsi[phasingLag]) + (1 - torque) * nz(crsi[1]);
def lm_hist = if crsi > Highest(crsi, cyclicmemory - 1) and !IsNaN(lm_hist[1])
then crsi
else if -crsi < Lowest(crsi, cyclicmemory - 1) and !IsNaN(lm_hist[1])
then -crsi
else 0;
def lmax = -Highest(lm_hist, cyclicmemory - 1);
def lmin = -Lowest(lm_hist, cyclicmemory - 1);
def mstep = (lmax - lmin) / 100;
def aperc = leveling / 100;
def db = fold dbx = 0 to 100
while (fold blx = 0 to cyclicmemory - 1
with b
do b + if crsi[blx] < lmin + mstep * dbx
then 1
else 0) / cyclicmemory >= aperc
do lmin + mstep * dbx;
def ub = fold ubx = 0 to 100
while (fold ulx = 0 to cyclicmemory - 1
with a
do a + if crsi[ulx] >= lmax - mstep * ubx
then 1
else 0) / cyclicmemory >= aperc
do lmax - mstep * ubx;
plot lowband = db;
lowband.SetDefaultColor(Color.GREEN);
plot highband = ub;
highband.SetDefaultColor(Color.RED);
plot C = crsi;
C.SetDefaultColor(Color.PLUM);
plot Oversold = C < lowband;
Oversold.Hide();
plot Overbought = C > highband;
Overbought.Hide();
plot SuperOversold = lowband < RSIOversold and Oversold;
SuperOversold.Hide();
plot SuperOverbought = highband > RSIOverbought and Overbought;
SuperOverbought.Hide();
AddCloud(db, ub, Color.DARK_GRAY, Color.DARK_GRAY);
AddCloud(0, if SuperOversold then 100 else Double.NaN, Color.GREEN, Color.GREEN);
AddCloud(0, if SuperOverbought then 100 else Double.NaN, Color.RED, Color.RED);The image was taken from WhenToTrade's own listing here. However, I've found it works perfectly fine on any time frame, for general stocks as well as crypto. I have been combining it with the Volatility Box and a simple MACD. Today I used this combination and pulled a 20 minute, 80% profit from EGOC.
For my next trick, I'll be attempting to convert one of WhenToTrade's other indicators, the Detrended Rhythm Oscillator, which gives insight into the proper dominant cycle to use, accounting for time frame.
Enjoy.
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