Cyclic Smoothed RSI with MTF trigger period highlighter

This indicator is an advanced version of the public available cyclic smoothed RSI indicator. It offers multi-time-frame period highlighting by using a higher time-frame cyclic smoothed RSI to indicate time periods with high-probability signals.

Overview

The following chart illustrates how it works and compares it against the basic RSI indicator. The csRSI indicator shows automatic highlighted periods with highlighted red and green time zones. These areas are based on another cyclic smoothed RSI indicator from a higher time-frame. The periods are marked red when the higher time-frame csRSI is above the upper bands and marked green when below the lower dynamic bands.

These colored periods in the indicator panel indicate the time to look for signals from the csRSI indicator. The derived signals are marked on the price chart. While the standard RSI would give too much whipsaw trades as indicated by the questions marks, however. the csRSI MTF version is able to filter the high probability signals while skipping false signals with a clear, objective procedure.

S&P500 EMini Futures 20min example signals

Chart 1: S&P E-Mini Futures 2h chart with daily higher time-frame filtering period for the csRSI, showing the standard RSI in the lower panel for signal comparison, signals from the csRSI are marked on the price chart

Bitcoin BTC/USD 20min example signals

Info:
The placed arrows on the price/indicator panel and the projection price areas have been added manually to visualize where the signals are derived based on standard technical indicator oscillator readings (signal turn above/below bands). Due to the nature of the indicator (ultra-smooth, sharp turns, dynamic bands), these signals are easily seen without any whipsaw. (please zoom in)

Link: https://www.tradingview.com/x/h407gPQm/

Features

Multi-Time-Frame filtering

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Ultra-smooth indicator

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Dynamic adaptive bands

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Cycle-tuned sharp signals

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