Dynamic RSI for ThinkorSwim

P

petergluis

Active member
I converted Dynamic RSI to ThinkorSwim. The Dynamic RSI indicator is a kind of exponential RSI . The overbought and oversold levels (respectively HiLine and LoLine) are calculated according to the recent highest and lowest values of the Dynamic RSI line.
https://www.tradingview.com/script/2FYksyrm-Dynamic-RSI/
https://imgur.com/exxD6al


Ruby: 
#https://www.tradingview.com/script/2FYksyrm-Dynamic-RSI/
#© Dreadblitz
declare lower;
def DZbuy = 0.1;
def DZsell = 0.1;
input period = 14;
input averageType = AverageType.WILDERS;
Def Lb = 60;
input price = close;
input length = 14;
def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

plot RSI = 50 * (ChgRatio + 1);
RSI.DefineColor("UpTrend", Color.GREEN);
RSI.DefineColor("DownTrend", Color.RED);
RSI.SetLineWeight(3);
RSI.SetPaintingStrategy(PaintingStrategy.LINE);
RSI.SetStyle(Curve.FIRM);
RSI.AssignValueColor(if RSI  > RSI  [1] then RSI.Color("UpTrend") else RSI.Color("DownTrend"));

def RSILine = 50 * (ChgRatio + 1);
def jh = highest(RSILine, Lb);
def jl = lowest(RSILine, Lb);
def jc = (wma((jh-jl)*0.5,Period) + wma(jl,Period));
def Hiline = jh - jc * DZbuy;
def Loline = jl + jc * DZsell;
def R = (4 * RSILine + 3 * RSILine[1] + 2 * RSILine[2] + RSILine[3] ) / 10;

plot a = R;
a.DefineColor("UpTrend", Color.light_GREEN);
a.DefineColor("DownTrend", Color.light_RED);
a.SetLineWeight(2);
a.SetPaintingStrategy(PaintingStrategy.LINE);
a.SetStyle(Curve.FIRM);
a.AssignValueColor(if a  >a  [1] then a.Color("UpTrend") else a.Color("DownTrend"));
plot b = Hiline;
b.SetDefaultColor(GetColor(4));
b.SetLineWeight(2);
plot c = Loline;
c.SetDefaultColor(GetColor(9));
c.SetLineWeight(2);
plot d = jc;
d.DefineColor("UpTrend", Color.cyan);
d.DefineColor("DownTrend", Color.magenta);
d.SetLineWeight(2);
d.SetPaintingStrategy(PaintingStrategy.LINE);
d.SetStyle(Curve.FIRM);
d.AssignValueColor(if RSI > d then d.Color("UpTrend") else d.Color("DownTrend"));
Addcloud(RSI, a, color.green, color.red);
Plot overbought =80;
overbought.SetDefaultColor(GetColor(5));
plot oversold = 20;
oversold.SetDefaultColor(GetColor(6));
 
Last edited by a moderator:

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I combined dynamic RSI with Stochastic RSI to monitor overbought and oversold states.
https://imgur.com/6JoNK1g

Ruby: 
#https://www.tradingview.com/script/2FYksyrm-Dynamic-RSI/
#© Dreadblitz
declare lower;
def DZbuy = 0.1;
def DZsell = 0.1;
input period = 14;
input averageType = AverageType.WILDERS;
Def Lb = 60;
input price = close;
input length = 14;
def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;
input KPeriod =5;
input DPeriod = 3;
input priceH = high;
input priceL = low;
input priceC = close;
input slowing_period = 3;
input averageType1 = AverageType.SIMPLE;
input showBreakoutSignals = {default "No", "On FullK", "On FullD", "On FullK & FullD"};

plot RSI = 50 * (ChgRatio + 1);
RSI.DefineColor("UpTrend", Color.GREEN);
RSI.DefineColor("DownTrend", Color.RED);
RSI.SetLineWeight(4);
RSI.SetPaintingStrategy(PaintingStrategy.LINE);
RSI.SetStyle(Curve.FIRM);
RSI.AssignValueColor(if RSI  > RSI  [1] then RSI.Color("UpTrend") else RSI.Color("DownTrend"));

def RSILine = 50 * (ChgRatio + 1);
def jh = highest(RSILine, Lb);
def jl = lowest(RSILine, Lb);
def jc = (wma((jh-jl)*0.5,Period) + wma(jl,Period));
def Hiline = jh - jc * DZbuy;
def Loline = jl + jc * DZsell;
def R = (4 * RSILine + 3 * RSILine[1] + 2 * RSILine[2] + RSILine[3] ) / 10;

plot a = R;
a.DefineColor("UpTrend", Color.light_GREEN);
a.DefineColor("DownTrend", Color.light_RED);
a.SetLineWeight(2);
a.SetPaintingStrategy(PaintingStrategy.LINE);
a.SetStyle(Curve.FIRM);
a.AssignValueColor(if a  >a  [1] then a.Color("UpTrend") else a.Color("DownTrend"));
plot b = Hiline;
b.SetDefaultColor(GetColor(4));
b.SetLineWeight(2);
plot c = Loline;
c.SetDefaultColor(GetColor(9));
c.SetLineWeight(2);
plot d = jc;
d.DefineColor("UpTrend", Color.cyan);
d.DefineColor("DownTrend", Color.magenta);
d.SetLineWeight(2);
d.SetPaintingStrategy(PaintingStrategy.LINE);
d.SetStyle(Curve.FIRM);
d.AssignValueColor(if RSI > d then d.Color("UpTrend") else d.Color("DownTrend"));
Addcloud(RSI, a, color.green, color.red);
Plot overbought =90;
overbought.SetDefaultColor(GetColor(2));
Plot overbought1 =80;
overbought1.SetDefaultColor(GetColor(2));
plot oversold1 = 20;
oversold1.SetDefaultColor(GetColor(6));
plot oversold = 10;
oversold.SetDefaultColor(GetColor(6));
def lowest_k = Lowest(priceL, KPeriod);
def c1 = priceC - lowest_k;
def c2 = Highest(priceH, KPeriod) - lowest_k;
def FastK = if c2 != 0 then c1 / c2 * 100 else 0;

plot FullK = MovingAverage(averageType1, FastK, slowing_period);
plot FullD = MovingAverage(averageType1, FullK, DPeriod);


def upK = FullK crosses above OverSold;
def upD = FullD crosses above OverSold;
def downK = FullK crosses below OverBought;
def downD = FullD crosses below OverBought;

plot UpSignal;
plot DownSignal;
switch (showBreakoutSignals) {
case "No":
    UpSignal = Double.NaN;
    DownSignal = Double.NaN;
case "On FullK":
    UpSignal = if upK then OverSold else Double.NaN;
    DownSignal = if downK then OverBought else Double.NaN;
case "On FullD":
    UpSignal = if upD then OverSold else Double.NaN;
    DownSignal = if downD then OverBought else Double.NaN;
case "On FullK & FullD":
    UpSignal = if upK or upD then OverSold else Double.NaN;
    DownSignal = if downK or downD then OverBought else Double.NaN;
}

UpSignal.setHiding(showBreakoutSignals == showBreakoutSignals."No");
DownSignal.setHiding(showBreakoutSignals == showBreakoutSignals."No");

FullK.SetDefaultColor(GetColor(1));
Fullk.SetLineWeight (1);
FullD.SetDefaultColor(GetColor(0));
FullD.SetLineWeight (1);
OverBought.SetDefaultColor(GetColor(1));
OverSold.SetDefaultColor(GetColor(1));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
 
I add color changes to Stochastic RSI in order to follow the trend changes. When RSI surpasses upperline, and stochastic RSI is greater than 90, it is overbought for the trend reversal or for the pullback. When RSI falls below lowerline, and stochastic RSI is smaller than 10, it is oversold for the trend reversal or for a dead cat bounce.

https://imgur.com/2ifKH4A
Ruby: 
#https://www.tradingview.com/script/2FYksyrm-Dynamic-RSI/
#© Dreadblitz
declare lower;
def DZbuy = 0.1;
def DZsell = 0.1;
input period = 14;
input averageType = AverageType.WILDERS;
Def Lb = 60;
input price = close;
input length = 14;
def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;
input KPeriod =5;
input DPeriod = 3;
input priceH = high;
input priceL = low;
input priceC = close;
input slowing_period = 3;
input averageType1 = AverageType.SIMPLE;
input showBreakoutSignals = {default "No", "On FullK", "On FullD", "On FullK & FullD"};

plot RSI = 50 * (ChgRatio + 1);
RSI.DefineColor("UpTrend", Color.GREEN);
RSI.DefineColor("DownTrend", Color.RED);
RSI.SetLineWeight(4);
RSI.SetPaintingStrategy(PaintingStrategy.LINE);
RSI.SetStyle(Curve.FIRM);
RSI.AssignValueColor(if RSI  > RSI  [1] then RSI.Color("UpTrend") else RSI.Color("DownTrend"));

def RSILine = 50 * (ChgRatio + 1);
def jh = highest(RSILine, Lb);
def jl = lowest(RSILine, Lb);
def jc = (wma((jh-jl)*0.5,Period) + wma(jl,Period));
def Hiline = jh - jc * DZbuy;
def Loline = jl + jc * DZsell;
def R = (4 * RSILine + 3 * RSILine[1] + 2 * RSILine[2] + RSILine[3] ) / 10;

plot a = R;
a.DefineColor("UpTrend", Color.light_GREEN);
a.DefineColor("DownTrend", Color.light_RED);
a.SetLineWeight(2);
a.SetPaintingStrategy(PaintingStrategy.LINE);
a.SetStyle(Curve.FIRM);
a.AssignValueColor(if a  >a  [1] then a.Color("UpTrend") else a.Color("DownTrend"));
plot b = Hiline;
b.AssignValueColor(if b> b[1] then Color.uptick else if b<b[1] then Color.lime else color.light_gray);
b.SetLineWeight(4);
plot c = Loline;
c.AssignValueColor(if c> c[1] then Color.uptick else if c<c[1] then Color.lime else color.light_gray);
c.SetLineWeight(4);
plot d = jc;
d.DefineColor("UpTrend", Color.cyan);
d.DefineColor("DownTrend", Color.magenta);
d.SetLineWeight(2);
d.SetPaintingStrategy(PaintingStrategy.LINE);
d.SetStyle(Curve.FIRM);
d.AssignValueColor(if RSI > d then d.Color("UpTrend") else d.Color("DownTrend"));
Addcloud(RSI, a, color.green, color.red);
Plot overbought =90;
overbought.SetDefaultColor(GetColor(2));
Plot overbought1 =80;
overbought1.SetDefaultColor(GetColor(2));
plot oversold1 = 20;
oversold1.SetDefaultColor(GetColor(6));
plot oversold = 10;
oversold.SetDefaultColor(GetColor(6));
def lowest_k = Lowest(priceL, KPeriod);
def c1 = priceC - lowest_k;
def c2 = Highest(priceH, KPeriod) - lowest_k;
def FastK = if c2 != 0 then c1 / c2 * 100 else 0;

plot FullK = MovingAverage(averageType1, FastK, slowing_period);

plot FullD = MovingAverage(averageType1, FullK, DPeriod);


def upK = FullK crosses above OverSold;
def upD = FullD crosses above OverSold;
def downK = FullK crosses below OverBought;
def downD = FullD crosses below OverBought;

plot UpSignal;
plot DownSignal;
switch (showBreakoutSignals) {
case "No":
    UpSignal = Double.NaN;
    DownSignal = Double.NaN;
case "On FullK":
    UpSignal = if upK then OverSold else Double.NaN;
    DownSignal = if downK then OverBought else Double.NaN;
case "On FullD":
    UpSignal = if upD then OverSold else Double.NaN;
    DownSignal = if downD then OverBought else Double.NaN;
case "On FullK & FullD":
    UpSignal = if upK or upD then OverSold else Double.NaN;
    DownSignal = if downK or downD then OverBought else Double.NaN;
}

UpSignal.setHiding(showBreakoutSignals == showBreakoutSignals."No");
DownSignal.setHiding(showBreakoutSignals == showBreakoutSignals."No");
Fullk.DefineColor("UpTrend", Color.cyan);
Fullk.DefineColor("DownTrend", Color.magenta);
Fullk.AssignValueColor(if Fullk > Fullk  [1] then Fullk.Color("UpTrend") else Fullk.Color("DownTrend"));
Fullk.SetLineWeight (1);
FullD.DefineColor("UpTrend", Color.cyan);
FullD.DefineColor("DownTrend", Color.magenta);
FullD.AssignValueColor(if FullD > FullD[1] then FullD.Color("UpTrend") else FullD.Color("DownTrend"));
FullD.SetLineWeight (1);
OverBought.SetDefaultColor(GetColor(1));
OverSold.SetDefaultColor(GetColor(1));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
addcloud(fullk, fulld, color.cyan, color.magenta);
 
Last edited:
poststreet said:
what advantage does this indicator have over a regular old rsi 14 study .
Click to expand...
The regular RSI has static OB / OS levels which some instruments may never reach.

Adding dynamic ranges based on the equity's historic range, provides more realistic overbought and oversold ranges.

PS: I don't personally use oscillators in this manner. But adding ranges to your indicators and to your candles, is always a good idea.
Knowing where price or any other indicator is within its trading range is an integral part of trading decisions.
 
Last edited:
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