Ingo Bucher proposed "Fibonacci RSI" in March,2003. It describes the advantages of considering Fibonacci retracement levels for use with the classic RSI indicator. Bucher reviews six charts, each displaying Fibonacci retracement levels for the RSI associated with each chart. The pine code given here will allow you to automatically recreate these charts for any security available in Tradingview. BTW, i enhanced it by changing RSI into VWAP RSI with hl2.
Function
For this Fib VWAP RSI indicator, it also applicable for original Bucher's fib concept. Bucher calculated his retracement levels by picking the RSI high and low for a given time window. In his examples, these were generally six months to a year's worth of data. Once the high and low were picked, he calculated retracement levels based on the well-known Fibonacci numbers (23.6%, 38.2%, 50%, 61.8%). This script here does the same thing. I use a "LookbackLength" (default: 400 bars), which represents a sliding data window that is used to determine the VWAP RSI high and low. The second input value controls the VWAP RSI period (default: 14 bars). The next three inputs select the retracement levels.
A total of eight different lines need to be drawn: the RSI itself, the 50% line, two retracements above the 50% point, two retracements below, and the zero and 100% lines. Pine script will create four plotlines per indicator, so I advise inserting the Fibonacci RSI twice. The first time it is inserted, leave the PlotRSI input with its default value, true. True tells pine script to plot the VWAP RSI itself. The second copy should have the input "Plot RSI" set to false. This will put the 50% line on your chart.
Inputs
LookbackLength --> Look Back Length. RSILength --> RSI Length. Fib1 and Fib2 --> Fibonacci lengths.
Hi, thank you for the great script.
Could you explain the last section concerning the function and the double inserting of the script? I couldn't find the PlotRsi setting in the script
What do the colours yellow and purple mean?
Do you have a more detailed explanation concerning signals?
thank you for your support, I think the script could bring me advantage for my trading style
blackcat1402
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@guga26, sorry for misleading, the described func was removed for simiplicity and pls ignore that section. BTW, yellow means rising and fuchsia means falling. You will find this meaning in my other indicator pub as well, it is my style. Plot 1 == "Plot RSI"
powerage85
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bro how to put it on closing price instead of vwap ???
Could you explain the last section concerning the function and the double inserting of the script? I couldn't find the PlotRsi setting in the script
What do the colours yellow and purple mean?
Do you have a more detailed explanation concerning signals?
thank you for your support, I think the script could bring me advantage for my trading style