Trading with the new RSI PRECISION v.3 (The first all-in-one Technical Analysis indicator)

□ Available: TradingView (free indicator)

□ Developer: Giorgos Protonotarios (2021-2023)

RSI PRECISION is an enhanced alternative to the classic Relative Strength Index (RSI) that also functions as a powerful signaling tool. The indicator improves upon the traditional RSI by incorporating PPV (Periodic Price Volatility) to deliver more accurate readings on longer timeframes.

RSI PRECISION v.3 provides five categories of leading trading signals:

• RSI crosses

• MACD signals

• Selected StochRSI signals

• Golden/Death cross signals

• Low-high timeframe SMA signals

You can add RSI PRECISION for free on TradingView: » https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

In the following chart, you can see the power of PPV in the RSI Precision formula. PPV not only enhances the accuracy of RSI readings but also helps reveal hidden divergences that the classic RSI might miss.

Chart: RSI Precision vs. Classic RSI (highlighting two hidden divergences on Bitcoin/USD)

 

□ Five Categories of Trading Signals

■ RSI PRECISION CROSSES

The first signal is the classic RSI cross. A bullish signal occurs when the RSI is oversold and then recovers, while a bearish signal is triggered when the RSI is overbought and subsequently reverses.

(i) Bullish RSI Cross

• Symbol: Green arrow (▲) at the top

• Event: RSI PRECISION crosses above level 5

(ii) Bearish RSI Cross

• Symbol: Red arrow (▼) at the bottom

• Event: RSI PRECISION crosses below level 100

Note: Levels 5 and 100 are indicative and can be customized in >Settings.

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■ STOCHRSI SIGNALS (SELECTED)

The second signal is the classic StochRSI signal. The default settings for StochRSI are 8, 5, 3, but these can be fully customized. You can also adjust the crossover and crossunder levels (default 25 and 75).

(i) Bullish Cross

• Symbol: Cross (+) at the top

• Event: StochRSI crosses above level 25

(ii) Bearish Cross

• Symbol: Cross (+) at the bottom

• Event: StochRSI crosses below level 75

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■ MACD SIGNALS

The third signal is the important MACD signal. The default settings are the standard (12, 26, 9) and cannot be changed. The MACD signal can provide a significant indication of an upcoming reversal, especially when it appears on higher timeframes, such as the monthly chart.

(i) Bullish Cross

• Symbol: Green dot (•) at the top

• Event: MACD crosses above its signal line

(ii) Bearish Cross

• Symbol: Red dot (•) at the bottom

• Event: MACD crosses below its signal line

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■ SMA CROSSOVERS

RSI PRECISION features two distinct SMA signals: one for low timeframes and one for high timeframes. You can adjust the periods for both. These signals are generated when the price of a financial instrument crosses above or below a preset SMA.

(i) Low-Timeframe SMA Cross (<60 minutes)

• Symbol: Bullish (↥) at the top of the indicator, Bearish (↧) at the bottom

• Event: The price crosses above or below the selected SMA on low timeframes

(ii) High-Timeframe SMA Cross (>60 minutes)

• Symbol: Bullish (↥) at the top of the indicator, Bearish (↧) at the bottom

• Event: The price crosses above or below the selected SMA on high timeframes

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■ GOLDEN/DEATH CROSSES (SMA CROSSOVERS)

The crossing of the 50-day moving average below the 200-day moving average is known as a death cross and is considered a bearish signal. Conversely, when the 50-day moving average crosses above the 200-day moving average, it is called a golden cross and is considered bullish.

By default, the fast SMA is set to 50 periods and the slow SMA to 200 periods, but both are customizable.

(i) Bullish SMA Cross

• Symbol: (X) at the top

• Event: The fast SMA crosses above the slow SMA

(ii) Bearish SMA Cross

• Symbol: (X) at the bottom

• Event: The fast SMA crosses below the slow SMA

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Customizing the Indicator

In this third version, the all-in-one indicator allows full customization of every parameter, including trading signals and even the core algorithm itself.

Chart: Customizing RSI Precision

 

□ More Information about the Indicator

■ MISSION

To enhance the classic Relative Strength Index algorithm and make it more accurate on longer timeframes (weekly, monthly). This new indicator is especially useful during choppy market conditions and is particularly effective for analyzing market tops and bottoms.

OBJECTIVES

(1) Develop an “all-in-one” tool by integrating five categories of leading trading signals—MACD, RSI, Golden/Death Crosses, StochRSI, and SMAs—into a single indicator.

(2) Improve RSI readings on longer timeframes to clearly identify overbought and oversold market conditions in a user-friendly way.

(3) Deliver precise calculations on longer timeframes, especially near market tops and bottoms, where price volatility typically surges.

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■ RSI PRECISION CALCULATIONS

The RSI PRECISION formula combines three key components:

(i) The classic RSI calculation component.

(ii) The PPV component (Periodic Price Volatility), which is very important.

(iii) The RSI Volatility component, which plays a lesser role.

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■ CONCLUSION

RSI PRECISION v.3 is the first all-in-one technical analysis indicator that integrates RSI readings with five categories of leading trading signals—all in one place for the first time. RSI PRECISION v.3 is offered free and can be added to TradingView via the following link:

» https://www.tradingview.com/script/cTEWnHdU-RSI-PRECISION-v-3

 

□ Giorgos Protonotarios, Financial Analyst, Building Web

ExpertSignal.com (November, 1st 2023)