What is the RSI Precision?
The classic Relative Strength Index (RSI) is one of the most used technical analysis indicators in the world. Actually, RSI is an oscillator that identifies the overbought and oversold levels of any market.
RSI PRECISION is an advanced version of the classic RSI, created by Giorgos Protonotarios. 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.
◙ Usage: Shows Overbought/Oversold Market Levels
◙ Trading: Any financial market, very useful for highly volatile markets such as Bitcoin and other crypto markets
◙ Standard Settings: 14 Periods or 21 Periods
□ Add RSI PRECISION on TradingView for free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/
Market Conditions for RSI PRECISION
■ RSI 80+ Overbought (can go higher than 100)
■ RSI 20- Oversold (can go lower than 0)
RSI PRECISION Can Help traders to:
(i) To make RSI readings more accurate, especially as concerns on large timeframes
(ii) Show overbought/oversold market conditions
(iii) Show market momentum
(iv) Identify tops/bottoms with accuracy
How Can We Calculate RSI PRECISION?
The RSI PRECISION algorithm combines three components:
(i) RSI component
(ii) Price Volatility component
(iii) RSI Volatility component
RSI PRECISION Basic Settings
(i) 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.
(ii) RSI FACTOR
You can modify the classic RSI weight in the formula.
(iii) PERIODIC PRICE VOLATILITY
You can modify the market momentum/volatility weight in the formula.
(iv) PERIODIC RSI VOLATILITY (%)
You can add an extra calculation of RSI volatility.
(v) CROSSOVER LEVELS
You can add visual alerts (green/red arrows) on any financial asset, in any timeframe.
(vi) 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.
Why using 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.
In the following chart, RSI PRECISION on Bitcoin/USD shows price action more accurately than the classic RSI.
Chart: RSI PRECISION on Bitcoin/USD
□ Add RSI PRECISION on TradingView for free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/
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