Trading with the new RSI PRECISION v.3 (The first all-in-one TA indicator)

Available: TradingView (free indicator)

Developer: Giorgos Protonotarios (2021-2023)

RSI PRECISION is an alternative to the classic Relative Strength Index (RSI) that additionally operates as a signaling machine. The indicator enhances the readings of the classic RSI with PPV (Periodic Price Volatility) to offer accurate calculations on longer timeframes. Additionally, it offers five categories of leading trading signals.

  • RSI crosses
  • MACD signal
  • Selected StochRSI signals
  • Golden/Death cross signal
  • Low-high timeframe SMA signals

You can add it for free on TradingView: » https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

In the following chart, you can see the power of PPV on the RSI Precision formula. PPV is not only useful for making RSI readings more accurate, but it is also useful for revealing hidden divergences.

Chart: RSI Precision vs the Classic RSI (revealing two hidden divergences on Bitcoin/USD)

RSI Precision is not only useful for making RSI readings more accurate, and for offering 5 leading trading signals, but it is also useful for revealing hidden divergences...

 

Five Categories of Trading Signals

■ RSI PRECISION CROSSES

The first signal is the classic RSI cross. A bullish signal is printed when the RSI is oversold and recovers, and a bearish signal is printed when the RSI is overbought and finally capitulates.

(i) Bullish RSI cross

  • Symbol: Green arrow (▲) on the Top
  • Event: RSI PRECISION crosses above level 5

(ii) Bearish RSI cross

  • Symbol: Red arrow (▼) on the Bottom
  • Event: RSI PRECISION crosses below level 100

Levels 5 and 100 are indicative and can be customized in >Settings.

 

■ STOCHRSI SIGNALS (SELECTED)

The second signal is the classic StochRSI signal. The settings for StochRSI are the classic 8.5.3 but they can be fully customized. You can also customize the crossover and crossunder levels (25/75).

(i) Bullish cross

  • Symbol: Cross (+) on the Top
  • Event: StochRSI crosses above level 25

(ii) Bearish cross

  • Symbol: Cross (+) on the Bottom
  • Event: StochRSI crosses below level 75

 

■ MACD SIGNALS

Third is the very important MACD signal. The default settings are the standard (12,6,9) and cannot be changed. The MACD signal can prove a significant indication for an upcoming reversal when it is printed on a high timeframe (especially on the monthly timeframe).

(i) Bullish cross

  • Symbol: Green Dot (•) on the Top
  • Event: MACD crosses above its signal line

(ii) Bearish cross

  • Symbol: Red Dot (•) on the Bottom
  • Event: MACD crosses below its signal line

 

 

■ SMA CROSSOVERS

There are two different SMA signals on RSI PRECISION. One is shown on low timeframes, and one on high timeframes (you can adjust the periods for both). These signals are printed when the price of a financial instrument crosses above or below a preset SMA.

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

  • Symbol: Bullish (↥) on the top of the indicator and bearish (↧) on the bottom
  • Event: The price crosses above or below the selected SMA on low timeframes

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

  • Symbol: Bullish (↥) on the top of the indicator and bearish (↧) on the bottom
  • Event: The price crosses above or below the selected SMA on high timeframes

 

■ GOLDEN/DEATH CROSSES (SMA CROSSOVERS)

The cross of the 50-day moving average below the 200-day moving average is called a death cross, and it is considered a bearish signal. On the other hand, the cross of the 50-day moving average above the 200-day moving average is called a golden cross, and it is considered a bullish signal.

By default, 50 periods for the fast SMA and 200 periods for the slow SMA (both are customizable).

(i) Bullish SMA Cross

  • Symbol: (X) on the Top
  • Event: The fast SMA crosses above the Slow SMA

(ii) Bearish RSI Cross

  • Symbol: (X) on the Bottom
  • Event: The fast SMA crosses below the Slow SMA

 

Customizing the Indicator

In this 3rd version, the all-in-one indicator allows the customization of every parameter, and that includes trading signals and even the core algorithm itself.

Chart: Customizing RSI Precision

In this 3rd version, the all-in-one indicator allows the customization of every parameter, and that includes trading signals and even the core algorithm itself...

 

□ More Information about the Indicator

■ MISSION

To improve the algorithm of the classic Relative Strength Index and make it more accurate at longer timeframes (weekly, monthly). The new indicator is particularly useful during choppy market conditions and especially as concerns the analysis of market tops/bottoms.

 

■ OBJECTIVES

(1) Creating an “All-in-one” tool by offering five categories of leading trading signals (MACD, RSI, Golden/Death Crosses, StochRSI, SMAs) in the same indicator

(2) Improving the readings of RSI at longer timeframes (Identify overbought/oversold market conditions in a user-friendly manner)

(3) Making precise calculations at longer timeframes, especially near market tops and bottoms (where price volatility is usually booming)

 

■ RSI PRECISION CALCULATIONS

The RSI PRECISION formula incorporates 3 key components:

(i) RSI component (classic RSI calculations)

(ii) PPV component ('Periodic Price Volatility' -very important))

(iii) RSI Volatility component (less important)

 

■ CONCLUSION

RSI PRECISION v.3 is the first all-in-one TA indicator. It combines RSI readings with five categories of leading trading signals. Everything is included in the same place for the first time. RSI PRECISION v.3 is offered for free and you can add it on TradingView using the following link:

» https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

 

□ Giorgos Protonotarios, Financial Analyst, Building Web

ExpertSignal.com (November, 1st 2023)

 

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» RSI PRECISION (MACD & SMA Signals)

» RSI PRECISION v.3 (Multi-Signal Machine)

       

 

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