RSI Ensemble Confidence [CHE]

vor 3 Stunden

RSI Ensemble Confidence — Measures RSI agreement across multiple lengths and price sources

Summary
This indicator does not just show you one RSI — it shows you how strongly dozens of different RSI variants agree with each other right now.
The Confidence line (0–100) is the core idea:
- High Confidence → almost all RSIs see the same thing → clean, reliable situation
- Low Confidence → the RSIs contradict each other → the market is messy, RSI signals are questionable

How it works (exactly as you wanted it described)

1. Multiple RSIs instead of just one
The indicator builds a true ensemble:
- 4 lengths (default 8, 14, 21, 34)
- 6 price sources (Close, Open, High, Low, HL2, OHLC4 – individually switchable)
→ When everything is enabled, up to 24 different RSIs are calculated on every single bar.
These 24 opinions form a real “vote” about the current market state.

2. Mean and dispersion
From all active RSIs it calculates:
- rsiMean → the average opinion of the entire ensemble (orange line)
- rsiStd → how far the individual RSIs deviate from each other
Small rsiStd = they all lie close together → strong agreement
Large rsiStd = they are all over the place → contradiction

3. Confidence (0–100)
The standard deviation is compared to the user parameter “Max expected StdDev” (default 20):
- rsiStd = 0 → Confidence ≈ 100
- rsiStd = maxStd → Confidence ≈ 0
- Everything in between is scaled linearly
If only one RSI is active, Confidence is automatically set to ~80 for practicality.

What you see on the chart

1. Classic reference RSI – blue line (Close, length 14) → your familiar benchmark
2. Ensemble mean – orange line → the true consensus RSI
±1 StdDev band (optional) → shows dispersion directly:
- narrow band = clean, consistent setup
- wide band = the RSIs disagree → caution
3. Confidence line (aqua, 0–100) → your quality meter for any RSI signal
4. StdDev histogram (optional, fuchsia columns) → raw dispersion if you prefer the unscaled value
5. Background coloring
- Greenish ≥ 80 → high agreement
- Orange 60–80 → medium
- Reddish < 40 → strong disagreement
- Transparent below that
6. Two built-in alerts
- High Confidence (crossover 80)
- Low Confidence (crossunder 40)

Why this indicator is practically useful

1. Perfect filter for all RSI strategies
Only trade overbought/oversold, divergences, or failures when Confidence ≥ 70. Skip or reduce size when Confidence < 40.

2. Protection against overinterpretation
You immediately see whether a “beautiful” RSI hook is confirmed by the other 23 variants — or whether it’s just one outlier fooling you.

3. Excellent regime detector
Long periods of high Confidence = clean trends or clear overbought/oversold phases
Constantly low Confidence = choppy, noisy market → RSI becomes almost useless

4. Turns gut feeling into numbers
We all sometimes think “this setup somehow doesn’t feel right”. Now you have the exact number that says why.

Disclaimer
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Do not use this indicator on Heikin-Ashi, Renko, Kagi, Point-and-Figure, or Range charts, as these chart types can produce unrealistic results for signal markers and alerts.

Best regards and happy trading
Chervolino

vor 3 Stunden

Versionshinweise

Improved naming, clarified ensemble stats, added SMA-based std coloring and kept all plots in single-line global scope.