Strategy Premise
The Relative Strength Index (RSI). Is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Increasing Rsi shows increasing bullish momentum. Decreasing Rsi shows increasing bearish momentum. We take RSI upper bound as 70 to indicate bullish momentum and the RSI lower bound as 30 to indicate bearish momentum.
Strategy Logic
Long Entry: When RSI goes below 20, send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and RSI goes above 70, send LX and SE
Short Entry: When RSI goes above 70, send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and RSI goes below 20, send SX and LE
RSI Strategy Parameters for TradingView Charts
Rsi Length(Mandatory): This is the number of bars used to calculated rsi Ex: 14 previous 14 candles are used to calculate RSI
Oversold(Mandatory): This is used to specify oversold of RSI
Overbought(Mandatory): This is used to specify overbought of RSI
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
TradingView Settings
STEP 1: Download The Pine Script Algo here
STEP 2: Open desired Chart in trading View with normal Candlestick, Select desired timeframe of the chart, Go to the pine editor section, remove the default code, paste the downloaded code, save the file and to chart.
STEP 3: Once Strategy is applied to the chart, click on settings to optimize parameters for your own trading.
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.
NOTE: The pinescript works both with webhook alerts (TV Pro plan) and normal popup alerts (TV free plan).
That’s all, you are ready to trade with RSI Pine script Strategy.
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