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Projecting Price Levels for Target RSI Bands

Article MQL5 code base
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Summary

The document introduces a “what-if” RSI indicator that estimates the price needed to reach a chosen RSI level. It plots those implied price levels on the main price chart, letting a trader compare the required move with current market conditions and judge whether an overbought or oversold signal appears close or distant.

The concept is attributed to François Bertrand’s April 2008 TASC article. The document offers a qualitative use case rather than a formula, parameter guide, chart example, or performance test. It presents the indicator as a way to visualize potential signal thresholds, not as evidence that RSI reversals will occur or that trading from the projected levels is profitable. Traders would need to assess its behavior on their own instruments and timeframes.

Key ideas

  • The indicator estimates the price needed to reach a selected RSI level.
  • It displays the projected price levels on the main chart alongside market prices.
  • The distance to a threshold can help assess how large a move is needed for an overbought or oversold signal.
  • The document provides no backtest or evidence that projected RSI levels predict profitable reversals.

Tags

Technical indicatorsMean reversion

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