colinmck

RSI chop filter

This demonstrates how you might filter your signals using RSI , but the same technique could be applied to Stochastic RSI and any other oscillator that has overbought and oversold conditions.

Use it as a visual indicator to determine when to enter a trade:

Red = Chop zone (no trade)
Bright red = Tight chop (dear god stay away)
Green = Overbought or oversold (signals permitted)
Bright green = Crossing up/down (take the trade)

To apply the filter, simply add 'and not chop' after your conditions as seen in the commented out example.
Release Notes: Swapping out a variable. A minor improvement.
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Comments

Useful and easy to read - just how I like my indicators. Thanks!
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Hm, for me it doesnt draw on chart...its not working at all?
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Its not bad but you could get more out of it. Changing the RSI length would be great. I notice with current settings its often a bit late.

And what about the moment there are no visuals? Volume weighted RSI would be really cool.
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colinmck belle88
@belle88, Cool, then feel free to grab this and tweak it for your needs
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Thanks so much for the indicator, loved it
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colinmck AnthonyS999
@AnthonyS999, You're very welcome!
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Been going through your scripts and checking them out. I have to say, nice job (!) and I like the sense of humor, too! (Bright red - dear god stay away!) :)
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colinmck Pop-A-Bear
@Pop-A-Bear, Ha, thanks! Got to have a sense of humour, especially just now!
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Thanks for indicator firstly but I am trying to understand, is the green where rsi is >70 & <30?
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colinmck Uni_ve12se
@Uni_ve12se, You're welcome! And that's right - areas of overbought and oversold, indicating an incoming trade. Light green is the price crossing both of those values.
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