tbiktag

Delta-RSI Oscillator

Introducing the Delta-RSI Oscillator.

This oscillator is a time derivative of the RSI , plotted as a histogram and serving as a momentum indicator . The derivative is calculated explicitly by means of local polynomial regression. It is designed to provide minimum false and premature buy/sell​ signals compared to many traditional momentum indicators such as Momentum, RSI , Rate of Change .

Application:
Potential trading signals provided by the Delta-RSI Oscillator include:
- zero crossing (negative-to-positive as a bullish sign and positive-to-negative sign as a bearish signal),
- change of direction (consider going long if the oscillator starts to advance, and short otherwise).
In addition, the strength of a particular trend can be estimated by looking at the Delta-RSI value (positive D-RSI in case of the uptrend, and negative in case of the downtrend).

Choosing the model Parameters:
-RSI Length: The timeframe of the RSI that is being differentiated.
- Frame Length: The length of the lookback frame used for local regression.
- Polynomial Order: The order of the local polynomial function.
Longer frames and lower order of polynomials will result in a "smoother" D-RSI, but at the expense of greater lag. Increasing the polynomial order while maintaining the frame length will reduce lag while producing more variance. The values set as default (Length=18, Order=2) were found to provide optimum the variance/lag tradeoff. However, other options (e.g., Length=35, Order=3) can also work well.

Relationship with other methods:
When developing this indicator, I was inspired by​ Connie Brown’s Derivative Oscillator. The latter pursues the same goal but evaluates the RSI derivative by means of triple smoothing. This paves the way for more clear interpretation and easier tuning of model parameters.

Catatan Rilis: Added the Signal Line to serve as ​a possible confirmation of the D-RSI direction change (analogous to the MACD signal line)
Catatan Rilis: .

If you enjoy using my scripts, consider becoming a supporter: https://www.buymeacoffee.com/tbiktag

A word of caution: always be aware of the risks and do not interpret data produced by the script or contained in the preview chart as trading advice.
Skrip open-source

Dalam semangat TradingView, penulis dari skrip ini telah mempublikasikannya ke sumber-terbuka, maka trader dapat mengerti dan memverifikasinya. Semangat untuk penulis! Anda dapat menggunakannya secara gratis, namun penggunaan kembali kode ini dalam publikasi diatur oleh Tata Tertib. Anda dapat memfavoritkannya untuk digunakan pada chart

Pernyataan Penyangkalan

Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.

Inggin menggunakan skrip ini pada chart?