OPEN-SOURCE SCRIPT
Enhanced Smoothed RSI
Updated
The "Enhanced Smoothed RSI Factor" indicator is a robust technical analysis tool designed to assist traders in identifying potential trends and reversals. This indicator combines elements of the Relative Strength Index (RSI) with a smoothed factor, enhancing its reliability and responsiveness. By visualizing the Enhanced Smoothed RSI Factor alongside the standard RSI and their associated upper and lower bands, traders gain insights into potential overbought and oversold conditions, facilitating more informed trading decisions.
How to Use:
Inputs Configuration: Adjust the indicator's parameters according to your trading preferences. Modify the source data (source) to suit the price data you want to analyze. Set the RSI period (rsiPeriod) for RSI calculations, the moving average period (movingAvgPeriod) for the bands, and the smoothing factor (factor) for enhanced responsiveness.
Enhanced Smoothed RSI Factor: The indicator calculates the Enhanced Smoothed RSI Factor by applying an exponential moving average (EMA) to the RSI values. This factor reflects changes in price momentum.
Comparison with Standard RSI: Observe the Enhanced Smoothed RSI Factor and the standard RSI side by side on your chart. While the standard RSI offers insights into price momentum, the Enhanced Smoothed RSI Factor adds an extra layer of smoothing for potentially clearer trend indications.
Bands and Bar Coloring: The indicator plots upper and lower bands, which are derived from weighted and simple moving averages of the Enhanced Smoothed RSI Factor. The color of the bars changes based on the position of the Enhanced Smoothed RSI Factor relative to the bands. Green bars indicate values above the upper band, red bars indicate values below the lower band, and gray bars indicate values within the bands.
Overbought and Oversold Levels: The indicator provides horizontal lines at levels 140 and 80. When the Enhanced Smoothed RSI Factor crosses above 140, it suggests a potential bullish trend, while crossing below 80 suggests a potential bearish trend. Additionally, levels 200 and 180 indicate overbought conditions, and levels 100 and 80 indicate oversold conditions.
Additional Insights: The indicator's upper and lower bands provide valuable insights into potential trend reversals. When the Enhanced Smoothed RSI Factor crosses above the upper band, it may signal an overextended bullish trend. Conversely, a crossover below the lower band may indicate an overextended bearish trend.
Important Considerations:
This indicator is most effective when used in conjunction with other technical analysis tools and strategies.
It's recommended to avoid making trading decisions solely based on the Enhanced Smoothed RSI Factor. Combine it with other indicators, chart patterns, and fundamental analysis.
Adjust the overbought and oversold levels to align with your trading strategy and the specific market conditions.
Please remember that trading involves risks, and the indicator's signals are not guaranteed. Always conduct thorough research and consider using a practice account before implementing any trading strategy.
How to Use:
Inputs Configuration: Adjust the indicator's parameters according to your trading preferences. Modify the source data (source) to suit the price data you want to analyze. Set the RSI period (rsiPeriod) for RSI calculations, the moving average period (movingAvgPeriod) for the bands, and the smoothing factor (factor) for enhanced responsiveness.
Enhanced Smoothed RSI Factor: The indicator calculates the Enhanced Smoothed RSI Factor by applying an exponential moving average (EMA) to the RSI values. This factor reflects changes in price momentum.
Comparison with Standard RSI: Observe the Enhanced Smoothed RSI Factor and the standard RSI side by side on your chart. While the standard RSI offers insights into price momentum, the Enhanced Smoothed RSI Factor adds an extra layer of smoothing for potentially clearer trend indications.
Bands and Bar Coloring: The indicator plots upper and lower bands, which are derived from weighted and simple moving averages of the Enhanced Smoothed RSI Factor. The color of the bars changes based on the position of the Enhanced Smoothed RSI Factor relative to the bands. Green bars indicate values above the upper band, red bars indicate values below the lower band, and gray bars indicate values within the bands.
Overbought and Oversold Levels: The indicator provides horizontal lines at levels 140 and 80. When the Enhanced Smoothed RSI Factor crosses above 140, it suggests a potential bullish trend, while crossing below 80 suggests a potential bearish trend. Additionally, levels 200 and 180 indicate overbought conditions, and levels 100 and 80 indicate oversold conditions.
Additional Insights: The indicator's upper and lower bands provide valuable insights into potential trend reversals. When the Enhanced Smoothed RSI Factor crosses above the upper band, it may signal an overextended bullish trend. Conversely, a crossover below the lower band may indicate an overextended bearish trend.
Important Considerations:
This indicator is most effective when used in conjunction with other technical analysis tools and strategies.
It's recommended to avoid making trading decisions solely based on the Enhanced Smoothed RSI Factor. Combine it with other indicators, chart patterns, and fundamental analysis.
Adjust the overbought and oversold levels to align with your trading strategy and the specific market conditions.
Please remember that trading involves risks, and the indicator's signals are not guaranteed. Always conduct thorough research and consider using a practice account before implementing any trading strategy.
Release Notes
Overview:In this release, we have made significant improvements to the Enhanced Smoothed RSI Factor (ESRF) indicator. The indicator now offers enhanced functionality and a more streamlined codebase for better performance and accuracy.
Changes Made:
Indicator Overlay and Timeframe Flexibility: We have introduced new parameters to control the indicator's overlay setting and its compatibility with different timeframes. The timeframe and timeframe_gaps parameters allow users to adjust the indicator's behavior according to their chart preferences.
Improved Non-Lag Exponential Moving Average (EMA): We replaced the previous EMA calculation with a more efficient and accurate non-lag EMA calculation. This enhances the responsiveness of the indicator to market changes.
Enhanced Upper and Lower Bands Calculation: We have improved the calculation of upper and lower bands for the Enhanced SRF by using the non-lag EMA. This leads to more precise band values.
Dynamic Bar Coloring: The chart bars are now color-coded based on a comparison between the Enhanced SRF and another non-lag EMA. This offers a more dynamic representation of market conditions.
RSI Calculation Enhancement: We have optimized the RSI calculation by using the Relative Moving Average (RMA) function for improved accuracy and efficiency. The RSI length and source can also be customized to suit your preferences.
Additional Plots and Styling: We added a plot for the lower band, making it easier to visualize its movements. The indicator's appearance has been updated for clarity and aesthetics.
RSI Settings Group: RSI-related inputs are now grouped together under the "RSI Settings" section, enhancing the indicator's organization and user-friendliness.
Color-Filled RSI Zones: To make it easier to interpret RSI values, we added color-filled zones for overbought and oversold conditions (RSI values above 70 and below 30, respectively).
Note: Make sure to adjust your indicator settings and strategies accordingly when upgrading to this new version, as there have been changes to the indicator's behavior and appearance.
We hope you find these enhancements valuable in your trading and analysis. If you have any feedback or encounter any issues with this updated version, please don't hesitate to reach out to us. Happy trading!
Open-source script
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