Indicators · Read the signal
RSI that marks the peak and trough of each zone visit.
RSI tells you when momentum is stretched, but not where the stretch topped out. RSI Cross Alert marks the highest RSI reading of each overbought visit and the lowest of each oversold one, once RSI has left the zone. It adds adjustable bands, several smoothing options and optional divergence.
Opens the indicator on TradingView.
Each part, what it shows and why it is there.
The Relative Strength Index is a momentum oscillator that measures the speed and size of price moves. High readings show strong upward momentum; low readings show weak momentum. RSI Cross Alert builds on the classic RSI, with an upper and a lower band marking the overbought and oversold zones. Both bands can be adjusted.
While RSI is above the upper band, the tool watches for the highest value it reaches. When RSI leaves the overbought zone, a red ▼ marker appears at that high. You get one mark for the top of the visit, not one for every bar spent up there. The author reads the peak as a potential reversal to the downside.
The same idea runs in reverse below the lower band. The tool watches for the lowest RSI value reached while oversold, and when RSI leaves the zone a teal ▲ marker appears at that low. The author reads the trough as a potential reversal to the upside, and recommends combining both markers with price action.
A marker appears only after RSI leaves the zone, because until then a new extreme can still come. That is why there is no marker while RSI is still overbought or oversold. Once it shows, it marks the top or bottom of the whole visit, not an early guess.
A moving average can run over the RSI line to smooth it, with several types to choose from. One option wraps that average in bands, which shows at a glance how far RSI is stretching away from its own recent average.
Optional marks for regular bullish and bearish divergence. A bullish divergence is when price makes a new low but RSI makes a higher low. A bearish divergence is when price makes a new high but RSI makes a lower high. Both show momentum not keeping up with price.
Because the peak is only known once RSI leaves the zone. Until then RSI can still make a new high, so the marker is confirmed on exit.
The author describes it as the RSI peak during overbought, a potential reversal to the downside, and recommends combining it with price action.
Optionally. It can mark regular bullish and bearish divergence, where price makes a new extreme that RSI does not match.
RSI Cross Alert is an analysis tool, not investment advice. Charts and examples are illustrations.