OPEN-SOURCE SCRIPT
The Perfect RSI (Ehler's Cycle RSI Modified with Discriminator)
This is the RSI indicator that I use. It combines two concepts of John Ehler. It integrates the idea of Highpass filtering the Price data, along with the the idea of automatically determining the Dominant price cycle through a Homodyne Discriminator, and using half of a cycle length as the input for the RSI. Not only determines the most effective range for the RSI by setting it based on the cycle, but also makes the RSI PDF(Probability Distribution Function) adjustable as shown in John Ehler's papers. Still needs some tweaking on determining the best calculations for cycles, and whether or not to better filter the price data into the discriminator.
Works just like a normal RSI, but should have less false signals, and also has the option for super smoothing. Play around it and see if theres any new indications or signals that come from it ;)
Let me know if there's any concerns or additions!
Works just like a normal RSI, but should have less false signals, and also has the option for super smoothing. Play around it and see if theres any new indications or signals that come from it ;)
Let me know if there's any concerns or additions!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.