RSI Projection v1

Application of concepts from Constance Brown "Technical Analysis for Trading Professionals", specifically: Chapter 7: Price Projections By Reverse Engineering Indicators, and Chapter 8: Price Objectives Derived From Positive and Negative Reversals In The RSI.

Specifically: I wanted to see if better Exit signals for the RSI could be generated from a basic application of some of the concepts in those chapters, and that is what I've found so far:
  • Exit when the RSI (purple) crosses below the orange line

  • Orange line is forecasted RSI for positive price reversals, blue line is forecasted RSI for negative price reversals

  • From what I can tell, this indicator does not work well during chop/consolidation and ranging periods, generating too many false signals without additional confluence from trending indicators and price analysis

  • This indicator should be considered highly experimental - do not use live trading without proper backtesting and parameter adjustment.

  • Tuning per asset and timeframe is required due to calculation type for highs/lows used for projection calculations
Open-source Skript

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