Cubic Bezier Curve RSI [CBCR]

8 ต.ค.

Overview :

Introducing the Cubic Bézier Curve RSI [CBCR] – an innovative approach to smoothing the traditional RSI using cubic Bézier curves. This indicator provides traders with a smoother, adaptive version of the RSI that can help filter out noise and better highlight market trends.

Key Features:

Bézier Curve : the script uses cubic Bézier curves to create a smoothed version of the RSI, offering a more visually appealing and potentially more insightful representation of market momentum.

Customizable Settings: Users can adjust the Bézier Curve Length, Impact Factor, and color modes, allowing full customization of the smoothing effect and visualization.

Color-coded Trend Indicator: The smoothed RSI is displayed with colors that indicate potential bullish or bearish trends, helping traders quickly assess market conditions.

Overbought/Oversold Lines: Option to display overbought and oversold levels for better identification of market extremes.

Parameters:

RSI Length: Set the length for the traditional RSI calculation (default is 14).

Bézier Curve Length: Adjust the length of the Bézier curve used to smooth the RSI (default is 20).

Impact Factor: Control the influence of the Bézier smoothed values versus the original RSI values (default is 0.5, ranging from 0.0 to 1.0).

Overbought/Oversold Lines: Option to show overbought (default: 70) and oversold (default: 30) lines for easier identification of extreme conditions.

Color Mode: Choose between "Trend Following" and "Overbought/Oversold" modes for line color indication.

Display Settings: Color customization for bullish and bearish phases allows better visual differentiation.

How It Works:

The CBCR uses four control points derived from historical RSI values over a user-defined length. It then applies the cubic Bezier formula to generate a sequence of points representing a smoothed version of the RSI over this range.

The Bezier curve is recalculated each time a specific number of bars (as defined by the Bezier Curve Length) have passed, helping reduce noise while retaining key trend information.

The result is a smoothed RSI that combines the adaptability of cubic Bezier curves with the familiar oscillation of the RSI, making it potentially more robust for identifying shifts in market sentiment.

Visuals:

Smoothed RSI Line: Plotted on the indicator pane, the line changes color depending on the chosen color mode:

Trend Following Mode: Color changes based on whether the smoothed RSI is above or below the 50-level.

Overbought/Oversold Mode: Color changes based on whether the smoothed RSI is above the overbought level or below the oversold level.

Bullish Color: Configurable (default: cyan).

Bearish Color: Configurable (default: red).

Overbought/Oversold Lines: Horizontal lines at user-defined levels (default: 70 for overbought, 30 for oversold) for easy identification of market extremes.

Usage:

The CBCR can be used like a traditional RSI but with a smoother output that may help traders avoid false signals generated by sudden price spikes. For instance:

Look for crossovers around the 50 level as a signal for changing momentum.

Use the overbought and oversold levels to identify potential reversal zones.

Observe the color change of the line for an immediate visual cue on current sentiment.