Pivot Detector Oscillator With Moving Average Regimes and RSI Thresholds

Summary

This strategy converts RSI readings into a normalized oscillator using different mappings depending on whether price is above or at or below a 200-period simple moving average. It uses a 14-period RSI by default. The resulting value is multiplied by 100 and compared with a midpoint of 50: readings above it set the position long, while readings below it set the position short. An optional reverse setting swaps those directions. The script plots the oscillator and colors bars by the resulting position.

The design combines a broad price regime filter with momentum thresholds, but it is not a conventional pivot-point calculation despite the indicator’s name. The inputs allow changes to the moving-average and RSI lengths and reference bands. The document gives no backtest results, transaction-cost assumptions, or asset-specific guidance, and labels the work educational. Persistent long or short signals may cause repeated strategy entry calls; practical behavior should be checked in the intended platform and tested with realistic execution assumptions.

Key ideas

• The oscillator applies separate RSI normalizations depending on price’s relationship to a long moving average.
• A normalized reading above 50 signals a long position, and a reading below 50 signals a short position.
• An input can reverse the direction of the position signals.
• The indicator plots its normalized value and colors chart bars according to the signal.
• The document supplies no evidence of profitability or estimates of trading costs.

Tags

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