anoojpatel

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!
Open-source script

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.

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Comments

ALSO IF YOU STUMBLE UPON THIS INDICATOR THROUGH A PAID GROUP, YOU'RE DOING IT WRONG. DON'T WASTE YOU TIME TO BE LEAD BY THE BLIND, AND PAY FOR VISION. Join a group that values teaching you to see. If they make more money from teaching than trading, are they good at trading?
+1 Reply
this is pinescript v2. have you by chance converted it to v4 ?

Thanks
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Nice work. thank you for sharing this. Will definitely test it.
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Is there any good source about the code between lines 34-69? A quick search on wiki made me understand what they are ( i didnt know their terms in English), but i still dont understand how they do help on better filtering.

Im familiar with the rest. ;)
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@Acel, It looks like most of this code comes from this post: . Info on using the Homodyne Discriminator with RSI can be found in the following site linked in that post: http://www.jstas.com/RSI/RSI ideaal.htm
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Acel ccbull
@ccbull, thanks for that, i read Ehlers' book and got more info. RSI has a very simple and effective formula.

Im trying to extract more info from the RSI by adding extra functionality. I haven't tried applying his proposed solutions for RSI yet but both Homodyne and Phase Accumulation approaches are very interesting.
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Nice works and congrats 1996anoojpatel, what a nice concept of this script. Thanks for your efforts and generous =D
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