OPEN-SOURCE SCRIPT
Trend Friendly RSI
Updated
Trend Friendly RSI
Unlike the standard RSI, "Trend Friendly RSI" adapts to the trend. RSI and other momentum-based oscillators cannot give a buy signal in uptrends and a sell signal in downtrends because they do not take into account the momentum of the trend and behave as if the price is in a constant sideways trend. "Trend Friendly RSI", on the other hand, takes into account the momentum of the trend of your chosen length and subtracts it from the current momentum, thus giving more realistic buy and sell signals.
use it to identify your long-term investments and trading entry points for hodl. It would be wise to use this indicator for assets that you have done fundamental analysis and are sure of the trend direction. it doesn't know what the price will do, it just shows the points that are suitable for you.
remember this indicator will fail in horizontal trends.
Unlike the standard RSI, "Trend Friendly RSI" adapts to the trend. RSI and other momentum-based oscillators cannot give a buy signal in uptrends and a sell signal in downtrends because they do not take into account the momentum of the trend and behave as if the price is in a constant sideways trend. "Trend Friendly RSI", on the other hand, takes into account the momentum of the trend of your chosen length and subtracts it from the current momentum, thus giving more realistic buy and sell signals.
use it to identify your long-term investments and trading entry points for hodl. It would be wise to use this indicator for assets that you have done fundamental analysis and are sure of the trend direction. it doesn't know what the price will do, it just shows the points that are suitable for you.
remember this indicator will fail in horizontal trends.
Release Notes
Unlike the standard momentum, "Trend Friendly Momentum" adapts to the trend. Momentum and other momentum-based oscillators cannot give a buy signal in uptrends and a sell signal in downtrends because they do not take into account the momentum of the trend and behave as if the price is in a constant sideways trend. "Trend Friendly RSI", on the other hand, takes into account the momentum of the trend of your chosen length and subtracts it from the current momentum, thus giving more realistic buy and sell signals. "tfm" not only adapts to the trend, but when the trend gets too long, it accepts it as a sign of reversal and starts to reduce the trend direction signals. The line turns green in an uptrend and red in a downtrend.
When using this indicator, first trade with half of the balance, and each time add half of the remaining money to your position. so you're costing from the top. use it to identify your long-term investments and trading entry points for hodl. It would be wise to use this indicator for assets that you have done fundamental analysis and are sure of the trend direction. it doesn't know what the price will do, it just shows the points that are suitable for you.
remember this indicator will fail in horizontal trends.
Release Notes
-added timeframe.-added buy and sell line.
-added alert.
-improved and simplified
- new results:
Open-source script
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 publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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