FreeIndicators·ThinkorSwim
Dynamic RSI
RSI with adaptive bands for live overbought/oversold.
How to install in ThinkorSwim
- In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
- Click Create, clear the editor, and paste the code.
- Name it, click Apply, then OK, and it draws on your chart.
How to Use — WeTradePro Dynamic RSI
RSI with overbought/oversold lines that adapt to the market's own recent range, instead of fixed 70/30. Educational, not advice.
What it is (one line)
A Wilder RSI whose overbought and oversold bands float — they're set at a percentile of the RSI's own recent high/low range, so they stay honest in trends and in chop.
Who it's for & best timeframe
| Trader type | How you use it | Best timeframe | Recommended setting |
|---|---|---|---|
| Day trader | Fade intraday stretches when RSI snaps back inside the adaptive band | 1-min – 15-min | rsiLength 14, rangeLength 50 |
| Swing trader | Best fit — buy oversold reversions in an uptrend, time exits at the floating overbought | Daily | rsiLength 14, rangeLength 60 |
| Position trader | Read whether momentum is still pinned to the upper band week over week | Weekly | rsiLength 14, rangeLength 40 |
Best overall: Daily, `rangeLength 60`. The adaptive bands stop you from shorting every "70" in a runaway uptrend.
What you see (lower panel below price)
- Cyan line: the RSI. Turns red when at/above the upper band, green when at/below the lower band.
- Red dashed line (top): adaptive overbought — floats up in strong trends.
- Green dashed line (bottom): adaptive oversold.
- Gray dashed 50: the bull/bear midline.
- Dots: red = RSI crossing back below the overbought band (fade-short reversion). Green = crossing back above the oversold band (fade-long reversion).
How to trade it (the core play)
- Check the 50 line for context — RSI mostly above 50 = uptrend, fade longs only.
- Wait for RSI to tag a band, then enter on the dot — the cross back *inside* the band, not the first touch.
- Green dot in an uptrend = highest-odds reversion long. Red dot in a downtrend = reversion short.
- Stop beyond the swing that made the extreme.
- Target the 50 line first, then the opposite band.
Settings (inputs)
rsiLength(14) — Wilder RSI period.rangeLength(60) — lookback that defines the adaptive band range. Longer = smoother, slower bands.bandPct(0.85) — how far up the recent range the overbought line sits (0.85 = 85%). Higher = stricter.showSignals(yes) — toggle the reversion dots.
Best on
- Liquid, mean-reverting names and ETFs: SPY, QQQ, IWM, AAPL, MSFT. Range-bound and pullback-in-trend conditions.
Common mistakes
- Treating the bands as fixed 70/30 — they move on purpose; respect where they are *now*.
- Entering on the first band touch instead of the cross-back dot.
- Fading a strong trend — in a runaway move RSI rides the upper band; use the 50 line to pick your side.
- Too short a `rangeLength` — bands get jumpy and signal too often.
Video script outline (for your WeTradePro tutorial)
- Hook: "70/30 lies in a trend. Let the bands move."
- Show fixed RSI failing to call a top in an uptrend, then the adaptive band holding.
- Walk the three colors of the RSI line.
- The reversion dot — cross back inside, not first touch.
- Using the 50 line to choose long-only vs short-only.
- Stop and target placement.
- Recap + "import link in description."
Educational analysis, not financial advice.
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