This indicator shows multiple Bands with prices corresponding to specified overbought/oversold levels.
It is used to extrapolate the exact price levels currently matching a given set of levels based on prior price/RSI levels action.
You can think of it as a reverse where levels are moving dynamically around the price instead of price bouncing between straight lines.
- 6+6 = 12 customizable Overbought(R)/Oversold(S) Levels + 6 Mean(M) lines
- Multicolor levels/fill ranges
- Show/Hide specific S/R/M levels and fill ranges
1. uses plot*, fill and is based on RSIBANDS_LB
Good Luck! Feel free to explore and learn from the code
this indicator is based on RSIBANDS_LB. Perhaps, LB himself can better explain how reverse RSI is calculated. I modified his code to add more levels.
RSI Levels are specified in percentages , so some sort of normalization is needed for x - that's what that line does.
auc = AvgU = average of all up moves in the last ep price bars
adc = AvgD = average of all down moves in the last ep price bars
This is how RSI is calculated (script uses the same formula):