The Forbidden RSI [CHE]

22. Dez. 2022

My main goal of programming and publishing an indicator is that everyone should have the opportunity to use indicators that do not show false signals or where there is maximum practical use, so I publish this indicator:

This script is an advanced variant of the Onset Trend Detector, a technical indicator for trend analysis developed by John F. Ehlers.
It is based on a non-linear quotient transformation and expands upon Mr. Ehlers' previous studies, the Super Smoother Filter and the Roofing Filter,
to address the lag issue common to moving average type indicators.

The algorithm in this script registers the most recent peak value and normalizes it. The normalized value then decays slowly until the next
peak swing. The ratio of the previously filtered value to the corresponding peak value is then transformed using a quotient transformation to
provide the resulting oscillator.

This script implements an indicator called "The forbidden RSI" (TFRSI). This indicator was developed by chervolino as an improvement on the
standard Relative Strength Index (RSI), which is a technical indicator used to measure the strength of a trend and identify potential buy and sell signals.

The TFRSI is calculated based on the close price and is typically plotted on a scale from -20 to 120, with values above 100 indicating that
the asset is overbought (likely to decline in value) and values below 1 indicating that it is oversold (likely to increase in value). The script
allows the user to customize the length of the RSI and the length of the trigger used to smooth the signal.

In order to calculate the TFRSI, the script first initializes some constants and then performs a series of calculations to determine the value of
"HP", "ag", and "Sp". The RSI value is then calculated based on the values of "X", which is based on "ag" and "Sp", and "q1", which is based on "X"
and the trigger length. The RSI value is plotted in a chart along with upper and lower bounds and a filled region representing the background.

Please check it out, it works perfectly to find good analysis and entries for both, longs and shorts.

Best regards

Chervolino

Note: I hope that the moderators like my script and the explanation and don't delete it this time

vor 36 Minuten

Versionshinweise

The updated version of the Pine Script for "The Forbidden RSI" (TFRSI) indicator introduces several enhancements and modifications compared to the previous version. Here's a detailed comparison of the changes:

1. Script Version Update
- Old Version: Written in `//version=5`.
- New Version: Updated to `//version=6`.

2. Input Formatting
- Adjusted input titles for better readability:
- Old: `'Trigger Length'` was not explicitly labeled.
- New: `'Trigger Length'` is now explicitly assigned a `title`.

3. Constants Initialization
- Constants are now initialized on separate lines for clarity:
- Old: All constants (`HP`, `a1`, `b1`, etc.) were defined in a single line.
- New: Each constant is defined on a separate line for improved readability.

4. Enhanced Gradient Fills
- Gradient fills for overbought and oversold regions have been added:
- Old: A single background fill (`fill`) existed between upper and lower RSI bands.
- New:
- Added a gradient fill for the overbought region (110 to 100) with a green gradient.
- Added a gradient fill for the oversold region (0 to -10) with a red gradient.

5. New Feature: Trend Strength Table
- A trend strength table has been added to the chart:
- Old: No trend strength visualization was included.
- New:
- Introduced a table (`trend_table`) that displays the trend strength as filled segments.
- The table dynamically updates based on the RSI value, using a segmented gradient from gray (empty) to purple (filled).

6. Additional Plot
- Added a hidden middle line plot for gradient calculations:
- Old: No additional plot for assisting gradient fill.
- New: A `midLinePlot` is added with `display = display.none`.

7. Syntax Improvements
- Improved formatting and syntax for better maintainability:
- Constants and calculations are formatted with clear spacing and logical alignment.
- Added missing or adjusted inline comments for better understanding.

8. Enhanced Table Features
- Trend strength table includes:
- Dynamic cell coloring based on RSI value.
- Transparency adjustments for partially filled cells.
- Display of numeric trend strength at the bottom.

9. Miscellaneous Updates
- Adjusted colors and transparency for visual consistency.
- Incorporated better variable naming practices:
- Example: Renamed `RSI_Length` from `RSI_Length` to `RSI Length`.

Summary of New Features
The updated version focuses on visual enhancements, better code readability, and new functionalities like the trend strength table and gradient fills. These changes improve the script’s usability and provide more detailed trend analysis for the user.