RSI PRECISION -AN ADVANCED VERSION OF THE CLASSIC RSI

Created by Giorgos Protonotarios, RSI PRECISION is an advanced version of the classic RSI indicator, available for free on TradingView. This oscillator enhances the traditional RSI by incorporating market momentum and periodic price volatility.

◙ Primary Use: Identifying Overbought/Oversold Market Levels

◙ Trading: Applicable to any financial market, especially effective for analyzing highly volatile assets (such as cryptocurrencies)

◙ Standard Settings: 14 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 designed to identify market tops and bottoms across any timeframe. It is user-friendly and enhances traditional RSI readings by incorporating periodic market momentum and price volatility.

RSI PRECISION is an ideal tool for spotting overbought and oversold market levels in highly volatile markets, such as Bitcoin and other cryptocurrencies. Additionally, RSI PRECISION offers a wide range of settings, allowing traders to fully customize their analysis to suit different market conditions.

 

RSI PRECISION IN SHORT

The relative Strength Index (RSI) is the dominant tool for identifying overbought and oversold market levels. However, RSI has several limitations, and its readings become difficult to interpret on larger timeframes such as weekly or monthly charts.

RSI PRECISION is an oscillator developed to enhance the classic RSI by incorporating price momentum and market volatility. Like the standard RSI, it identifies overbought and oversold levels, but it is much more responsive to volatile market conditions. This sensitivity makes it especially effective for analyzing market tops and bottoms, where volatility typically surges.

The oscillator has been extensively tested and is proven to work with any tradable financial asset across all timeframes. Additionally, users can modify the settings to create custom versions of the core formula to suit specific trading strategies.

 

KEY FEATURES & OBJECTIVES

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

(a) To improve the accuracy of RSI readings on larger timeframes

(b) To simplify the identification of overbought and oversold market conditions

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

(d) To provide precise calculations near market tops and bottoms

(e) To offer flexibility and experimentation through a wide range of customizable settings

 

Image: RSI PRECISION vs. Classic RSI on Weekly BTC

As shown on the chart, RSI PRECISION is significantly more accurate than the classic RSI when applied to larger timeframes.

 

 RSI PRECISION CALCULATIONS

The RSI PRECISION algorithm is composed of three key components:

(i) RSI Component – Based on the classic Relative Strength Index

(ii) Price Momentum and Periodic Price Volatility Component – Enhances sensitivity to dynamic market conditions

(iii) RSI Volatility Component – An optional feature (inactive by default) that adds an extra layer of responsiveness

 

 

 BASIC  SETTINGS

These are the basic settings of RSI PRECISION:

(a) RSI Periods

RSI PRECISION can be applied to any period, though it is recommended to use 14-period or 21-period timeframes for optimal performance.

(b) RSI Factor

Adjust the weight of the classic RSI within the formula to fine-tune its influence.

(c) Periodic Price Volatility

Modify the weight of market momentum and volatility in the formula to adapt to different market behaviors.

(d) Periodic RSI Volatility (%)

Optionally include an additional calculation for RSI volatility to enhance responsiveness.

(e) Crossover Levels

Enable visual alerts (green/red arrows) for any financial asset across any timeframe to highlight key crossover points.

(f) Base Level

The BASE LEVEL represents the default point of market equilibrium. Readings below this level are colored red (bearish bias), while readings above are colored black (bullish bias).

 

 SWITCHING TO RSI PRECISION

RSI PRECISION is superior to the classic RSI, offering a more user-friendly and significantly more accurate tool—particularly on larger timeframes and in highly volatile markets. It is the ideal solution for identifying overbought and oversold market levels with greater precision.

□ Add RSI PRECISION to any TradingView chart here – it’s 100% free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/

 

□ RSI PRECISION -AN ADVANCED RSI

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April, 5th, 2021