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FreeIndicators·ThinkorSwim

Dynamic RSI

RSI with adaptive bands for live overbought/oversold.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. 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 typeHow you use itBest timeframeRecommended setting
Day traderFade intraday stretches when RSI snaps back inside the adaptive band1-min – 15-minrsiLength 14, rangeLength 50
Swing traderBest fit — buy oversold reversions in an uptrend, time exits at the floating overboughtDailyrsiLength 14, rangeLength 60
Position traderRead whether momentum is still pinned to the upper band week over weekWeeklyrsiLength 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)

  1. Check the 50 line for context — RSI mostly above 50 = uptrend, fade longs only.
  2. Wait for RSI to tag a band, then enter on the dot — the cross back *inside* the band, not the first touch.
  3. Green dot in an uptrend = highest-odds reversion long. Red dot in a downtrend = reversion short.
  4. Stop beyond the swing that made the extreme.
  5. 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)

  1. Hook: "70/30 lies in a trend. Let the bands move."
  2. Show fixed RSI failing to call a top in an uptrend, then the adaptive band holding.
  3. Walk the three colors of the RSI line.
  4. The reversion dot — cross back inside, not first touch.
  5. Using the 50 line to choose long-only vs short-only.
  6. Stop and target placement.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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