A Very Interesting RSI Trading Strategy

Presenting the V-RSI Trading Technique in TradingView

This article is based on a new series of studies that showcase a few trading techniques based on the RSI. A trading technique is a way to use an indicator. The study is based on Pine Script, TradingView’s coding language.

A Gentle Introduction to the RSI

The RSI stands for Relative Strength Index, a technical analysis indicator used to measure the strength and momentum of a security, such as a stock, currency, or commodity. The RSI is calculated using mathematical formulas and plotted on a graph to visually represent the level of strength or weakness of a security over a given period.

The RSI is based on the principle that as prices rise, the security becomes overbought, and as prices fall, the security becomes oversold. The RSI helps traders to identify potential trend reversals or price corrections.

The RSI calculation involves comparing the average gain of the security over a given period to the average loss of the security over the same period. The default version of the RSI is then plotted on a scale of 0 to 100, with readings above 70 considered overbought, and readings below 30 considered oversold. The RSI is a popular indicator among traders because it can…