[EDU] RSI Momentum Bands — Indicator by tarasenko_

concept centeredoscillator educational reverse bands momentumbands education tarasenko

RSI Momentum Bands serve a purpose to find best RSI momentum for entering a trade.

Indicator is built simply:
1st RSI MA is smoothed RSI by little period, 2nd RSI MA is smoothed RSI by a bigger period.
Then we calculate standard deviation from the 2nd MA and make upper and lower band.

The rules for trades are simple:

When RSI is above higher band - Buy;
When RSI is below lower band - Sell.

The indicator is for educational purposes only to present trades a momentum bands concepts, widely used across professionals.

Hope you will find it helpful.
Take your profits!
- Tarasenko Fyodor

Release Notes:

+ Quick color fix.

Release Notes:

+ Filling.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?