RSI Scalper

 RSI Scalper Key Components

1. Fast & Slow RSI
   • Fast RSI (default length of 4) is sensitive to quick market shifts.
   • Slow RSI (default length of 9) smooths out noise.
   • Together, they help identify immediate momentum changes while still referencing a more stable view of the trend.
2. Overbought/Oversold Levels
   • Overbought: Default 68
   • Oversold: Default 42
   • These thresholds trigger “firstLong” or “firstShort” conditions, allowing the indicator to anticipate potential reversals.
3. LSMA (Least Squares Moving Average)
   • An internal custom indicator calculates the slope of the LSMA line (default 40-period, offset 10. I use 138/55).
   • Uptrend is detected if the LSMA slope is positive.
   • Downtrend is detected if the LSMA slope is negative.
4. Signals
   • Arrows appear on the chart to indicate potential entries.
   • Long Signals are drawn when the Fast RSI crosses above the Overbought level (68) and the Slow RSI was previously below the Oversold threshold—indicating a strong upward shift.
   • Short Signals are drawn when the Fast RSI crosses below the Oversold level (42) after the Slow RSI was above the Overbought threshold—indicating a downward move.
5. LSMA Filter (Optional)
   • When enabled, the indicator checks LSMA slope to see if it’s trending up or down.
   • Long signals only appear if the market is in an uptrend.
   • Short signals only appear if the market is in a downtrend.
   • This helps filter out signals that occur during counter-trend conditions, improving potential trade quality.

How It Works Step by Step

1. Initialize
   • On each new bar, the indicator calculates the Fast RSI and Slow RSI values.
   • It tracks whether the Slow RSI was previously above Overbought or below Oversold—this sets up “firstShort” or “firstLong.”
2. Check RSI Crosses
   • If the Fast RSI crosses below the Oversold level (42) and “firstShort” is true, it signals a potential short setup.
   • Conversely, if the Fast RSI crosses above the Overbought level (68) and “firstLong” is true, a potential long setup is triggered.
3. Apply LSMA Filter (If Enabled)
   • The slope of the LSMA is evaluated: if slope > 0, it’s an uptrend; if slope < 0, a downtrend.
   • The indicator only draws an ArrowUp for long signals if it’s an uptrend. Similarly, it only draws an ArrowDown for short signals if it’s a downtrend.
4. Plot & Arrows
   • An LSMA line is plotted in the price panel .
   • An arrow is drawn below a bar for a long signal, or above a bar for a short signal, colored according to your chosen settings (default: Lime for Long, Red for Short).
     
   • Good length and offset would be 138 with an 55 offset(this can be customized by user choice)

Why It Matters

• Quick Scalps: By focusing on short RSI lengths, you capture rapid price fluctuations.
• Less Noise: The Slow RSI plus the LSMA filter helps confirm whether the short-term signal aligns with a broader move.
• Customizable: Adjust RSI lengths, Overbought/Oversold levels, and LSMA parameters to suit different markets or timeframes.
• Visual Cues: Arrows make spotting potential trades easier, while color-coded signals offer instant clarity on which direction to consider.