RSI Hunter

Concept and Methodology This indicator is an advanced technical tool that "reverse engineers" J. Welles Wilder’s standard Relative Strength Index (RSI).

While a standard RSI takes price data and outputs an oscillator value (0-100), this script performs the inverse operation. It calculates exactly what Price the current candle must reach to generate a specific RSI value (e.g., RSI 74 or RSI 26). By projecting these price levels onto the chart, traders can visualize Overbought and Oversold zones in real-time, turning the RSI from a lagging confirmation tool into a leading price-target system.

Key Features

1. Multi-Timeframe (MTF) Projection The indicator allows you to map RSI levels from a higher timeframe onto your current chart. For example, you can view the 3-Hour RSI "Overbought" price levels while trading on a 5-minute chart. This creates distinct "stepped" support and resistance lines that remain valid for the duration of the higher timeframe's candle.

2. Dual Zone Logic The script projects two distinct bands of resistance and support:

Inner Zone (Early Warning): Defaults to RSI 69 / 31. This represents the initial threshold of over-extension.

Outer Zone (Extreme): Defaults to RSI 74 / 26. This represents statistical extremes where mean reversion probabilities are higher.

Zone Shading: The area between the Inner and Outer lines is shaded (Red for Resistance, Green for Support) to visually identify the "Reversal Zone."

3. Smart Wick & Rejection Filter (New) This version introduces a robust filtration system designed to reduce false signals during strong trending moves (often referred to as "falling knives").

How it works: The signal logic is Intra-bar Aware. It continuously asks two questions:

Did the price touch the zone? (Did the High/Low breach the Inner line?)

Did the price reject? (Did the candle Close back inside the neutral channel?)

The Result: Signals are generated only when the price tests the level but closes safely back inside the range. This captures both long-tail wick rejections (single bar) and trend reversals, while suppressing signals when the candle closes deep inside the Overbought/Oversold zones.

How to Interpret

Stepped Lines: These are the dynamic resistance (Red) and support (Green) levels based on the selected Timeframe's RSI.

Large Arrows (Deep Red / Lime Green): Triggered when price touches the Outer (Extreme) band and rejects/closes back below the Inner band.

Small Arrows (Standard Red / Green): Triggered when price touches the Inner (Early) band and rejects/closes back, but did not reach the Outer extreme.

Settings & Defaults

RSI Length: 23

Timeframe: 3 Hours (180 minutes)

Targets: 74/26 (Outer) and 69/31 (Inner)

Filter: "Wait for Confirmed Exit" is ON by default.

Disclaimer This tool is for informational and educational purposes only. RSI projections are mathematical calculations based on historical price averages and do not guarantee future market movements. Always use proper risk management.