This is an improved version of the popular Relative Strength Index (RSI) specially designed for cryptocurrency and tech stocks trading. The new oscillator combines RSI readings and key technical analysis signals into a single tool.

 

RSI PRECISION PLUS MACD & SMA SIGNALS (FREE ON TRADINGVIEW)

RSI PRECISION is an oscillator that generates RSI readings by also taking into account price volatility and momentum. The great advantage is the accuracy of readings at high timeframes (monthly, weekly) and during market tops and bottoms. RSI PRECISION can analyze every volatile financial asset class in the world, such as the Nasdaq stocks and cryptocurrencies.

RSI Precision can be used for several tasks:

• Recognize overbought/oversold market levels more accurately than the classic RSI
• Recognize RSI support and resistance levels
• Identify key divergences between RSI slope and price slope

3 Trading Signals:

• RSI Precision Crossovers/Crossunders
• MACD Crosses (over/under its signal line)
• SMA Golden Cross & Death Cross (50/200)

■ You can add RSI PRECISION for free on TradingView: » https://www.tradingview.com/v/kBpWBCXU/

Example on Bitcoin/USD

The following example includes RSI Precision on Bitcoin. There is an unbelievable accurate breakout on the 21st of July, 2021. On the exact same date, Bitcoin price reversed and started a rally of over 130%.

Chart: Bitcoin Daily (D1) and RSI Precision

 

RSI PRECISION ALGORITHM

The RSI PRECISION algorithm incorporates three (3) different formulas:

(i) RSI readings formula (by default 100%)

(ii) Price volatility formula (by default 100%)

(ii) RSI Precision volatility formula (by default 5%)

You can customize all three formulas on 'Settings'.

 

THE 3 TRADING SIGNALS OF RSI PRECISION

(1) MACD CROSS OVER/UNDER SIGNAL LINE

-You get a bullish signal when the MACD line crosses from below to above the signal line. The further below the zero line the more reliable the trading signal.

-You get a bearish signal when the MACD line crosses from above to below the signal line. The further above the zero line the more reliable the trading signal.

The default settings are the standard MACD settings (12,6,9).

(i) Bullish signal (Green Dot (•) on the Top)

MACD line crosses from below to above the signal line

(ii) Bearish signal (Red Dot (•) on the Bottom)

MACD line crosses from above to below the signal line

NOTE: you may switch off MACD signals by going on ‘SETTINGS’, then clicking on ‘STYLE’, and finally, by unselecting ‘Bullish/Bearish MACD Cross’.

 

(2) RSI PRECISION CROSS (OVER/UNDER CERTAIN LEVEL)

-You get a bullish signal when RSI Precision crosses from below to above a certain level. By default, it is 5 for a bullish crossover.

-You get a bearish signal when RSI Precision crosses from above to below a certain level. By default, it is 100 for a bearish crossunder.

These levels can be customized via settings.

(i) Bullish RSI Precision (Green arrow (▲) on the Bottom)

RSI Precision crosses above level 5

(ii) Bearish RSI Precision (Red arrow (▼) on the Top)

RSI Precision crosses below level 100

 

(3) SMA GOLDEN & DEATH CROSS

-You get signals when there is a cross between a fast and a slow SMA. By default, it is 50 periods for the faster SMA and 200 periods for the slower SMA.

These levels can be customized via settings.

(i) Golden Cross (Green (X) on the Top)

Fast SMA crosses above Slow SMA (50/200)

(ii) Bearish Cross (Red (X) on the Bottom)

Slow SMA cross above Fast SMA (50/200)

 

RSI PRECISION BASIC SETTINGS

One of the great advantages of RSI Precision is that you can customize almost everything in "Settings", even the formula of the oscillator.

Chart: RSI Precision Settings

 

Parameters

• RSI PERIODS: 14, by default
• RSI FACTOR (%): 100%, by default
• PERIODIC PRICE VOLATILITY (%): 100%, by default
• RSI VOLATILITY (%): 5%, by default
• RSI CROSSOVER: 5, by default
• RSI CROSSUNDER: 100, by default
• FAST SMA: 50 periods, by default
• SLOW SMA: 200 periods, by default

 

■ You can add RSI PRECISION for free on TradingView: » https://www.tradingview.com/v/kBpWBCXU/

 

□ RSI Precision (Plus MACD & SMA Signals)

Edited and coded by Giorgos Protonotarios

for ExpertSignal.com, March 2022