Dynamic RSI-Reset Regression Channels with Standard Deviation Bands

Summary

This indicator rebuilds a linear regression channel after RSI crosses configured overbought or oversold thresholds. The regression window grows from a minimum number of bars after each reset, up to a user-defined maximum. A standard deviation measure around the regression line sets the upper and lower channel boundaries, with a multiplier controlling their width. The script also marks RSI resets and flags possible channel rejections when price crosses a band and the following candle closes back inside with a directional body. Visual settings control line display, colors, widths, and markers.

The channel is a charting aid rather than a complete trading strategy: the document specifies no orders, position sizing, or exit plan. Its example defaults use a short RSI length and extreme reset thresholds, but no market study, backtest, or predictive results are included. Because both the regression window and channel restart in response to RSI events, the displayed structure depends on parameter choices and recent trigger timing. Rejection markers describe a particular price pattern; the source offers no evidence that these events predict profitable reversals.

Key ideas

• RSI threshold crossings reset the period used to calculate the regression channel.
• The regression lookback grows after a reset until it reaches a configurable maximum.
• Upper and lower bands offset the regression line by a chosen multiple of price standard deviation.
• Rejection markers identify a prior band crossing followed by a candle closing back inside the channel.
• The indicator defines chart signals but includes no trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.