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Relative Strength Index (RSI)

What is RSI?​

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements.
RSI values range from 0 to 100 and are typically used to identify overbought or oversold conditions in a market.

Common thresholds:

  • RSI > 70 → Overbought (possible reversal or pullback)
  • RSI < 30 → Oversold (possible bounce or rally)

The RSI is calculated using average gains and losses over a given period (default is 14).

How to Add an RSI Indicator?​

  1. Click on the "+" button in the Indicators section.
  2. Select Relative Strength Index (RSI).
  3. Choose the data point and source.
  4. Configure the Length, Time Frame, and Offset.
  5. Click "Add" to save the indicator.

Configurable Parameters in RSI​

1. On Data (Source Selection)​

  • RSI can be applied to any price data stream (e.g., candles or custom values).
  • Must be selected from the available dropdown list.

2. Time Frame​

  • Determines the granularity of data used for RSI calculation.
  • Example: A value of 5 means RSI will be calculated on 5-minute candle data.

3. Length​

  • Refers to the lookback period for average gain/loss calculations.
  • Default is 14 periods.

4. Source​

  • Determines which data point is used for the RSI:
    • Close
    • Open
    • High
    • Low
    • HLC3, etc.

5. Offset​

  • Shifts the RSI values forward or backward.
  • Useful for testing time-shifted strategies.

Element Name​

Each RSI indicator gets a default name like _rsi_14
You can rename it to something more descriptive if multiple RSI indicators are being used.

tip

Renaming elements helps in better script readability when combining multiple indicators.

Use Cases for RSI​

  • Trend Reversals
    → Detect when an asset is potentially overbought or oversold.
  • Divergence Detection
    → Spot divergence between RSI and price for early signals.
  • Momentum Confirmation
    → Confirm strength of a trend before entering a position.
warning

Be cautious of false signals — RSI works best when combined with other indicators like Moving Averages or MACD.

Next Steps​

✅ Add RSI to your strategy
✅ Experiment with different lengths and sources
✅ Combine RSI with trend indicators for robust strategies