STUDENT WYCKOFF Smart RSI

STUDENT WYCKOFF Smart RSI is not just “RSI above 70 / below 30”.
It adapts its levels to volatility, highlights real extreme zones and marks the moments when momentum is leaving them.

Use it to see where buying or selling pressure is truly exhausting and combine it with your own price action and Wyckoff logic.


STUDENT WYCKOFF Smart RSI is a flexible, context-driven version of the classic RSI. It is designed for traders who want to read momentum in a more intelligent way than just “RSI above 70, RSI below 30”.

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1. Concept
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Instead of fixing RSI to one rigid set of levels, this script lets you choose how sensitive you want the oscillator to be and how you want to visualize that information:

• Classic 70/30 – standard overbought/oversold bands, familiar to most traders.
• Aggressive 80/20 – fewer but more extreme signals, useful for strong trends.
• Dynamic Std Bands – adaptive zones based on the mean and standard deviation of RSI, so the levels “breathe” with volatility rather than staying flat.

The goal is not to create magic entry signals, but to give you a clean, configurable picture of buying/selling pressure that fits different market conditions and styles of trading.

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2. RSI logic and plotting
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• Base indicator: standard RSI calculated on a chosen source (by default – close) with a configurable length.
• Optional smoothing: a short SMA of RSI (signal length) to reduce noise. If you set the smoothing length to 1, the script plots the raw RSI.
• Auto-coloring:
– Above 50 → “bullish pressure” color.
– Below 50 → “bearish pressure” color.
– Around 50 → neutral color.

You can fully customize all colors directly in the settings.

The script can also show:
• Overbought / oversold level lines (depending on the selected mode).
• A middle line at 50 to quickly see which side of the market is dominant.
• Background highlighting when RSI is inside overbought or oversold zones, so you can read the context at a glance without staring at numbers.

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3. Smart zone exits and signals
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Instead of signaling every time RSI simply “touches” a level, the script focuses on exits from extreme zones:

• LONG context signal
– RSI has been below the lower band (oversold).
– Then RSI crosses back above this lower band.
– A small green upward triangle is plotted at the RSI value.

• SHORT context signal
– RSI has been above the upper band (overbought).
– Then RSI crosses back below this upper band.
– A small red downward triangle is plotted at the RSI value.

All signals are calculated only on bar close using `barstate.isconfirmed`. This helps reduce repaint-like behaviour and makes the signals more reliable for alerts and discretionary decision-making.

These signals are NOT a complete trading system. They are context markers that tell you: “momentum is leaving an extreme zone, pay attention to the price action, volume and higher-timeframe structure”.

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4. Alerts
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The script contains two built-in alertconditions with constant messages:

• STUDENT WYCKOFF Smart RSI LONG – triggers when RSI exits the oversold zone upward.
• STUDENT WYCKOFF Smart RSI SHORT – triggers when RSI exits the overbought zone downward.

To use them:
1. Add the indicator to your chart.
2. Open the Alerts panel in TradingView.
3. Choose this script as the condition.
4. Select one of the available alert names (LONG or SHORT).
5. Set your preferred timeframe, expiry and notification method.

Once configured, the alerts will inform you every time a new arrow appears.

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5. How to use in practice
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• Works on any symbol and timeframe supported by TradingView.
• On higher timeframes, the Dynamic Std Bands mode can help you see where RSI is “statistically unusual” relative to its recent behaviour.
• On lower timeframes, Classic or Aggressive modes can help filter noise by waiting for strong expansions of momentum and subsequent exits.
• Combine the signals with your own price action, Wyckoff logic, volume analysis, trend structure and risk management. RSI alone should never be the only reason to enter or exit a position.

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6. Disclaimer
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This script is published for educational and analytical purposes only. It does not provide financial, investment or trading advice and does not guarantee any results. Always test tools on historical data, understand the logic behind them and use proper risk management according to your own trading plan.