Published in Stocks & V. 24:2 (February, 2006): The Self-Adjusting
David Sepiashvili's article, "The Self-Adjusting ," presents a technique to adjust the traditional overbought and oversold thresholds so as to ensure that 70-80% of values lie between the two thresholds. Sepiashvili presents two algorithms for adjusting the thresholds. One is based on standard deviation, the other on a of the .
This script allows you to choose between plotting the Self-Adjusting bands or the traditional bands. You can also plot a smoothed ( or ) and change the theme color for dark or light charts.
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In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.