RSI PRECISION -AN ADVANCED VERSION OF THE CLASSIC RSI

Created by Giorgos Protonotarios, RSI PRECISION is an advanced version of the classic RSI that works on TradingView and it is free. The oscillator enhances RSI with market momentum and periodic price volatility.

◙ Usage: Identifying Overbought/Oversold Market Levels

◙ Trading: Trading any market, and especially Highly Volatile Markets (such as the cryptocurrency market)

◙ Standard Settings: 14 Periods or 21 Periods

□ Add RSI PRECISION on any TradingView chart here, it is 100% free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/

 WHAT IS RSI PRECISION?

RSI PRECISION is a technical analysis oscillator that identifies market tops/bottoms in any timeframe. The oscillator is very easy to use and enhances RSI readings with periodic market momentum and price volatility.

RSI PRECISION is the ideal tool to spot overbought/oversold market levels in highly volatile markets, such as Bitcoin and other crypto markets. In addition, RSI PRECISION provides a great variety of options (settings) and allows traders to fully customize their analysis according to different market conditions.

RSI PRECISION IN SHORT

Currently, RSI is the dominant tool for identifying overbought/oversold market levels. The problem with RSI is that it has several limitations, and its readings are hardly readable on large timeframes (weekly, monthly).

RSI PRECISION is an oscillator designed to enhance the classic RSI with price momentum and market volatility. As in the case of the common RSI, the new oscillator spots overbought/oversold market levels, however, it is very sensitive to volatile market conditions. This feature makes it ideal for analyzing tops/bottoms, as during tops/bottoms volatility booms.

The oscillator is extensively tested and proven to work with any financial-traded asset and on any timeframe. Nevertheless, there is the option to modify settings and create alternative versions of the main formula.

KEY FEATURES & OBJECTIVES

The RSI PRECISION formula combines the readings of the classic Relative Strength Index with market momentum and the periodic measurement of price volatility. The key objectives are the following:

(a) To make RSI readings more accurate on large timeframes

(b) To easily identify overbought/oversold market conditions

(c) To visualize market momentum in a user-friendly environment

(d) To make precise calculations near market tops/bottoms

(e) To offer the chance for experimentation via a plethora of settings

 

Image: RSI PRECISION vs Classic RSI on Weekly BTC

As it can be seen on the chart, RSI PRECISION is far more accurate on larger timeframes than the classic RSI.

 

 RSI PRECISION CALCULATIONS

The RSI PRECISION algorithm combines three components:

(i) RSI component

(ii) Price Momentum and periodic Price Volatility component

(iii) RSI Volatility component (not active, by default)

 

 

 BASIC  SETTINGS

These are the basic settings:

(a) RSI PERIODS

You can use RSI PRECISION on any period, however, it is recommended to use it on a 14-period or a 21-period timeframe.

(b) RSI FACTOR

You can modify the classic RSI weight in the formula.

(c) PERIODIC PRICE VOLATILITY

You can modify the market momentum/volatility weight in the formula.

(d) PERIODIC RSI VOLATILITY (%)

You can add an extra calculation of RSI volatility.

(e) CROSSOVER LEVELS

You can add visual alerts (green/red arrows) on any financial asset, in any timeframe.

(f) BASE LEVEL

The BASE LEVEL is the default value of market equilibrium. Below this level, readings are colored in red. Above this level, readings are colored in black.

 

 SWITCHING TO RSI PRECISION

RSI PRECISION is superior to the classic RSI as it is considerably more friendly and more accurate. Especially as concerns larger timeframes and highly volatile markets, RSI PRECISION is the ideal tool for spotting overbought/oversold market levels.

□ Add RSI PRECISION on any TradingView chart here, it is 100% free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/

 

□ RSI PRECISION -AN ADVANCED RSI

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April, 5th, 2021