Artharjan - RSI and RSI-Moving Avg Crossover Signals

Apr 27, 2022

Hi,

I have created "Artharjan - Index Heavy Weight Components RSI and RSI-Moving Avg Crossover Bullish/Bearish/Neutral Signal" (Short Name - ARSICROSSOVER) indicator for Traders whereby they can see the RSI and RSI Moving Average Values for Indices and Index heavyweight Components at the same time in a Dashboard.

The analysis is based on 2 different timeframes. Basically when Higher timeframe RSI is Bullish and Lower timeframe is Bearish then you enter the LONG trade when Lower Timeframe RSI shows "Bullish Reversal Signal" &
when Higher timeframe RSI is Bearish and Lower timeframe is Bullish then you enter the SHORT trade when Lower Timeframe RSI shows "Bearish Reversal Signal"

The two timeframes which I have selected by Default are Weekly (Higher timeframe) and 30 min Lower (Trade Entry) Timeframe

Also I have used to source to calculate the RSI as 5 period WMA of hlc3, if you want use raw RSI to generate crossover signals then change the source to "close" and input soothing to '1' instead of '5'

The system generates very accurate Buy and Sell Signals and when the script is range bound in its respective timeframe it shows Neutral signal

The overbought and oversold levels for Higher and Lower timeframes are set to be 60/40 and 70/30 respectively, however Traders may change these levels as per their preferences.

For intraday trades I would recommend using Higher time frame as "Daily" and Lower (Trade Entry) Timeframe as "15 min"
For Swing trades I would recommend using Higher time frame as "Weekly" and Lower (Trade Entry) Timeframe as "75 min"
For Positional trades I would recommend using Higher time frame as "Monthly" and Lower (Trade Entry) Timeframe as "Daily"

Also you can select maximum 10 Scripts at any given point in time.
My recommendation would be to use Sector Index as Script 1 and then Heavy weight components of that Sector in Script 2 to 10
This will help you to identify which Stock is responsible to pull index Up or Down and then you may decide to take either a Long Trade or Short Trade accordingly.

The Background Color and Bullish/Bearish/Neutral stages are decided based on following logic

1] If Higher timeframe RSI > Overbought Level - Stock is in a Bull Run
2] If Higher timeframe RSI > If Higher timeframe EMA of RSI = Positively Bullish
3] If Higher timeframe RSI < Oversold Level - Stock is in a Bear Run
4] If Higher timeframe RSI < If Higher timeframe EMA of RSI = Positively Bearish
5] Bulls will be said to have control if Condition 1 & 2 are true
6] Bears will be said to have control if Condition 3 & 4 are true
7] The Stock/Index will be said to be in a Neutral zone if its RSI is less than Overbought Level but greater than Oversold Level

The same rules are applicable for a Lower (Trade Entry) Timeframe

Hope you guys like this indicator and are able to make decent money by using it.

Regards
Rahul Desai
Artharjan

Apr 27, 2022

Release Notes

Made some cosmetic changes and cleaned up the code.

May 16, 2022

Release Notes

Updated the code with more in-depth signals and interpretation