OUR LATEST INDICATOR (FREE ON TRADING VIEW)

RSI Precision is a refined version of the Relative Strength Index. By adding a momentum algorithm to its formula, RSI Precision gives more sensitive signals than the classic RSI, a feature that stands out on longer timeframes. Additionally, the new indicator works as an advanced signaling machine, offering five categories of leading trading signals: RSI, MACD, StochRSI, SMA, and Golden/Death Crosses.

■ Trading Signals: RSI cross | MACD signal line cross | StochRSI cross | SMA cross | Golden/Death cross

■ Add RSI Precision on TradingView: 🔗 https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

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⚙️ RSI Precision Objectives & History

Here are the objectives of the new indicator and a brief history of its versions:

(1) Building a stronger RSI that works as an “all-in-one” indicator

(2) Showing overbought and oversold levels in a simple, user-friendly way

(3) Providing more accurate readings near market tops and bottoms, where price volatility is always booming

(4) Making precise calculations on longer timeframes (weekly, monthly), where the classic RSI readings are hardly readable

(5) Combining five categories of trading signals into one indicator

🕰️ History

In this third version, the core formula of RSI Precision stays the same, but it now includes new trading signals and many additional parameters.

🔗 RSI PRECISION v.2 (Adding MACD & SMA Signals)

🔗 RSI PRECISION v.1 (Basic Version)

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🆕 What's New in Version 3

• Selected StochRSI signals

• Low-timeframe SMA signals (<60 minutes)

• High-timeframe SMA signals (>60 minutes)

• SMA applied to RSI Precision readings

• Fully customizable settings with helpful tooltips

👉 Note: You can turn off any trading signal by unselecting it in Settings > Style.

As shown in the chart below, RSI Precision provides five categories of trading signals and allows full customization, including the RSI formula itself. 

Chart: RSI Precision v.3 on monthly EURUSD

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□ New Trade Signals Categories (v.3)

1️⃣ STOCHRSI SIGNALS (SELECTION)

Selected StochRSI signals appear as a cross (+) at the top or bottom of the indicator. The default StochRSI settings are 8.5.3, which can be customized. By default, a crossover is triggered when StochRSI rises above 25, and a cross-under when it falls below 75.

(i) Bullish StochRSI Cross

Symbol: Cross (+) at the Top

Event: StochRSI crosses above level 25

(ii) Bearish StochRSI Cross

Symbol: Cross (+) at the Bottom

Event: StochRSI crosses below level 75

 

2️⃣ SMA CROSSOVERS (LOW/HIGH TIMEFRAMES)

These signals occur when the asset price crosses a preset SMA. There are two SMAs: one for low timeframes and one for high timeframes. Both periods are adjustable, with a default of 200 periods.

(i) Low-Timeframe SMA Cross (<60 minutes)

Symbol: Bullish (↥) at the top, Bearish (↧) at the bottom

Event: Price crosses above or below the selected SMA on low timeframes

(ii) High-Timeframe SMA Cross (>60 minutes)

Symbol: Bullish (↥) at the top, Bearish (↧) at the bottom

Event: Price crosses above or below the selected SMA on high timeframes

 

3️⃣ SMA LINE ON RSI PRECISION

A simple SMA line is applied to RSI Precision readings, set to 50 periods by default.

• SMA Line (blue-dashed)

You can disable it in Settings > Style.

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□ Previous Version Trade Signal Categories (Included)

The third version of RSI Precision also includes all trading signals from previous versions.

 

4️⃣ RSI PRECISION CROSSES

This signal shows bullish or bearish RSI Precision crosses. By default, a bullish crossover is at 5 and a bearish crossover at 100. These values can be customized.

(i) Bullish RSI Precision Cross

Symbol: Green arrow (▲) at the Top

Event: RSI Precision crosses above level 5

(ii) Bearish RSI Precision Cross

Symbol: Red arrow (▼) at the Bottom

Event: RSI Precision crosses below level 100

 

5️⃣ MACD CROSSOVER SIGNALS

MACD signals appear as green or red dots (•) with default settings of 12, 6, 9.

(i) Bullish MACD Cross

Symbol: Green Dot (•) at the Top

Event: MACD crosses above its signal line

(ii) Bearish MACD Cross

Symbol: Red Dot (•) at the Bottom

Event: MACD crosses below its signal line

Note: On lower timeframes, MACD can produce too many signals. You can disable them in Settings > Style by unchecking ‘Bullish MACD Cross’ and ‘Bearish MACD Cross’.

 

6️⃣ GOLDEN/DEATH CROSSES (SMA CROSSOVERS)

A Golden Cross occurs when the 50-day SMA crosses above the 200-day SMA, considered bullish. A Death Cross occurs when the 50-day SMA crosses below the 200-day SMA, considered bearish.

These crosses are shown as (X). By default, the fast SMA is 50 periods and the slow SMA is 200 periods, both customizable.

(i) Bullish SMA Cross

Symbol: (X) at the Top

Event: Fast SMA crosses above Slow SMA

(ii) Bearish SMA Cross

Symbol: (X) at the Bottom

Event: Fast SMA crosses below Slow SMA

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🧮 RSI Precision Algorithm & Key Components

RSI Precision includes seven different algorithms, organized into two main categories:

• The Core RSI Formula (explained below)

• The six Trading Signal Algorithms (explained earlier)

Explaining the Core RSI Formula

The core formula of the indicator has three components. The first mimics the classic Relative Strength Index. The second component is the Periodic Price Volatility (PPV), which adds price momentum to the formula, making RSI Precision more sensitive and accurate than the classic RSI. The third component is the RSI Volatility, which adds a touch of RSI volatility to the overall readings.

(a) Relative Strength Index component – the classic RSI

(b) Periodic Price Volatility component (PPV) – essential

(c) RSI Volatility component – minor effect, less critical

Here is how the three components of the RSI Precision formula work, along with their basic settings.

Breaking Down the 3 Components

A breakdown of the three components that make up the indicator.

(i) CLASSIC RSI

This measurement represents the classic RSI. If the other two components are set to 0%, setting this to 100% makes RSI Precision identical to the classic RSI.

-By default, 100%

(ii) PERIODIC PRICE VOLATILITY -PPV

The Periodic Price Volatility (PPV) measures price momentum and is a key part of the core formula. Its weight in the formula can be easily adjusted.

-By default, 100%

(iii) RSI VOLATILITY

This is an additional measure of volatility, focusing solely on periodic RSI volatility rather than price volatility and momentum.

-By default, 5%

 

🔗 ADD RSI PRECISION 3 FOR FREE: You can add RSI PRECISION here on TradingView.com, it is 100% free: » https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

 

□ RSI Precision (Plus MACD & SMA Signals)

Coded by Giorgos Protonotarios, Financial Analyst

for TradingCenter.org (c), October 2022