This is an enhanced version of the popular Relative Strength Index (RSI), specifically tailored for trading cryptocurrencies and tech stocks. The updated oscillator integrates RSI values with key technical analysis signals into a single, comprehensive tool.

 

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

 

RSI PRECISION is an oscillator that generates RSI readings by also factoring in price volatility and momentum. Its key advantage lies in delivering highly accurate readings on higher timeframes (monthly, weekly) and during market tops and bottoms. RSI PRECISION is capable of analyzing any volatile financial asset class globally, including Nasdaq stocks and cryptocurrencies.

RSI PRECISION can be used for several tasks:

• More accurately detect overbought and oversold market levels than the classic RSI

• Identify RSI support and resistance levels

• Spot key divergences between RSI slope and price slope

3 Trading Signals:

• RSI PRECISION Crossovers and Crossunders

• MACD Crosses (above or below 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 features RSI Precision applied to Bitcoin. There was an incredibly accurate breakout signal on July 21, 2021. On that exact date, Bitcoin’s price reversed and began a rally exceeding 130%.

Chart: Bitcoin Daily (D1) with RSI Precision

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RSI PRECISION ALGORITHM

 

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

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

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

(iii) RSI Precision volatility formula (default: 5%)

All three formulas can be customized in the Settings.

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THE 3 TRADING SIGNALS OF RSI PRECISION

 

(1) MACD CROSSOVER/CROSSUNDER SIGNAL LINE

• A bullish signal occurs when the MACD line crosses from below to above the signal line. The further below the zero line this crossover happens, the more reliable the signal.

• A bearish signal occurs when the MACD line crosses from above to below the signal line. The further above the zero line this crossunder happens, the more reliable the signal.

The default settings are the standard MACD parameters (12, 26, 9).

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

MACD line crosses from below to above the signal line

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

MACD line crosses from above to below the signal line

NOTE: You can disable MACD signals by going to Settings > Style, then unchecking Bullish/Bearish MACD Cross.

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

• A bullish signal occurs when RSI Precision crosses from below to above a specified level. By default, this level is 5 for a bullish crossover.

• A bearish signal occurs when RSI Precision crosses from above to below a specified level. By default, this level is 100 for a bearish crossunder.

These levels can be adjusted in Settings.

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

RSI Precision crosses above level 5

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

RSI Precision crosses below level 100

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(3) SMA GOLDEN & DEATH CROSS

• Signals are generated when a fast SMA crosses a slow SMA. By default, the fast SMA is set to 50 periods and the slow SMA to 200 periods.

These periods can be customized in Settings.

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

Fast SMA crosses above Slow SMA (50/200)

(ii) Death Cross (Red X at the Bottom)

Slow SMA crosses above Fast SMA (50/200)

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RSI PRECISION BASIC SETTINGS

 

One of the major advantages of RSI Precision is the extensive customization available in Settings, including the ability to modify the oscillator’s formulas.

Chart: RSI Precision Settings

 

Explaining Basic 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