The cyclic smoothed indicator is an enhancement of the classic , adding
- additional smoothing according to the market vibration,
- adaptive upper and lower bands according to the cyclic memory and
- using the current dominant cycle length as input for the indicator.
The cRSI is used like a standard indicator. The chart highlights trading signals where the signal line crosses above or below the adaptive lower/upper bands. It is much more responsive to market moves than the basic .
You can also review this short idea where BTC went down from 4300 USD (3 Sept 17) to 3700 USD (15 Sept 17) after the idea was posted and showed the clear short exit with the next low:
The indicator uses the dominant cycle as input to optimize signal, smoothing and cyclic memory. To get more in-depth information on the cyclic-smoothed indicator, please read Chapter 4 "Fine tuning technical indicators" of the book "Decoding the Hidden Market Rhythm, Part 1" available at your favorite book store.
This is the open-source code version of the requested script already published as protected indicator back in 2017 "RSI cyclic smoothed". Now made public as v2. Would love to receive feedback and see your ideas.
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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.