This indicator is a tool designed to be used with Steven Hart's RSI Exhaustion strategy. For more information google TheTradingChannel or look him up on YouTube :)

The default RSI settings for this strategy are:

RSI Overbought: 80
RSI Oversold: 20
Length: 7

When the RSI gets above 80, the line will turn red and the script will begin looking for a specific type of engulfing candle to go short. The same is true when the RSI gets below 20, but the line will turn green and look for longs. It is best used as a back-testing aid, but it can also be used to send emails or SMS alerts whenever the conditions are met. It can also be used as an alternative colored RSI indicator by removing the signals in the settings menu and changing the RSI parameters to whatever you normally use. This can aid in RSI divergence and overbought/sold strategies.


The bright green and bright red lines represent the first type of engulfing candle.
The dark green and red lines represent the second type of engulfing candle.

Some pairs perform best with only one of these entries, while others work fine with both.

This is a counter-trend or consolidation strategy, and is best used in combination with trend-continuation or trend-following strategies. As always, make sure you back-test it before you use it to trade as it works better on some pairs than others.
版本注释: Fixed script picking up some invalid engulfing candles.
版本注释: Added alert functionality.
版本注释: Added strategy back-testing results.
版本注释: Here is a companion indicator I made for this oscillator which plots your entry, SL and TP to the chart:

版本注释: Minor improvements.
版本注释: Minor improvements
版本注释: Minor improvements
版本注释: Updated to Pine Script version 4

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本着真正的TradingView精神,该脚本的作者将其开源发布,以便交易者可以理解和验证它。为作者喝彩!您可以免费使用它,但在出版物中重复使用此代码受网站规则的约束。 您可以收藏它以在图表上使用。