The ( ) is calculated using the following formula: = 100 - 100 / (1 + RS ) Where RS = average gain of upward phases during the specified time frame / average loss of downward phases during the specified time frame.
An asset price is considered overbought (due for a correction) if the is above 70 and oversold (due for a recovery) if it is below 30. More extreme values (80/20) are also used to avoid false readings.
In a strong uptrend, the often reaches 70 and above for long periods, and downtrends can remain at 30 or below for long periods.
Divergence detection in is one of the important functions of this indicator. The reason is that an divergence is a more reliable signal than the overbought and oversold indicators themselves. You will get overbought and oversold signals all the time. However, the divergence is a rare event.
In general, divergence means that the indicator is moving in the opposite direction compared to the price. So while the price is moving, the is telling us in advance to expect a change in direction.
A positive divergence is when the price trend has lower lows and lower highs, while the indicator does the opposite - higher highs and higher lows. The price continues to fall while the indicator begins to rise.
Negative divergence is the opposite of positive divergence. It applies to uptrends where the price reaches higher highs and higher lows. However, the shows lower highs and lower lows - the price goes up but the goes down. The price closes with higher highs and higher lows, while the indicator does the opposite - lower lows and lower highs, confirming a negative divergence. As a result, there is a sharp decline in the price.
RSX Indicator - Base script: SharkCIA by Jaggedsoft (Linked in the source code)
The RSX is the noise-free variant of the more popular oscillator. Typically, any indicator can be smoothed by applying a moving average. However, a major disadvantage of such a method is that there is a time lag between the indicator and the price. RSX Indicator attempts to do this without signal delay.
What distinguishes this indicator from others of this type?
- Display of indicator together/alone with RSX and smoothed
- display of the indicator (option: "RSI: On/Off")
- display of the RSX indicator (option: "RSX: On/Off")
- display of the indicator as smoothed version (option: "RSI Smoothed: On/Off")
- offers the possibility to choose between different view variants
- many settings for additional information, layout and divergence identification
- enables completely new comparison possibilities and insights with the additional variants
- Code optimisation: Unnecessary duplicate queries removed
- added a new, very interesting option to display the RSI as a histogram (enabled by default).
- For the histogram display, the variant (RSI, RSX, RSI Smoothed) can now be selected via the option 'Histogram: Variant' can be selected
- Added new entries 'RSI Only', 'RSX Only' for the Option "Template: Visual Types"
- add optional "RSI Laguerre"
- Option "Template: Visual Types " removed for a better overview in the settings
- Group inputs in the same section
- Refactor function _funcCalcMA() using switch operator
- activate timeframe gaps by default
- add optional "MFI" (Money Flow Index indicator) for more interesting comparisons.
- set the default Value of Calculation Source to 'hlc3' (Before: close). Is still adjustable.
- Now it is possible to set additional smoothing types for all variants
- Calculation of moving averages extended with new type "Karobein"
- Added another interesting option "Volume Based Calculation On/Off
- I have decided to narrow the indicator back down to its originally intended variants "RSI / RSX". All previous features such as additional histogram, additional smoothing settings, volume-based calculation, highlighting of breakouts remain. I hope this will make the indicator clearer for you again.
- add new MA Type => "TEMA" (Triple EMA)
Ganz im Spirit von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es besser verstehen und überprüfen können. Herzlichen Glückwunsch an den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Veröffentlichung unterliegt den Hausregeln. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.
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