RSI Signal Crosses for Support and Resistance Levels with Heatmap Context

Summary

The indicator creates price levels when RSI crosses its own moving average in a filtered region: bullish crosses below 50 and bearish crosses above 50. For each event, it scans back up to ten bars for the first candle opposing the expected move. It uses that candle’s low to define bullish support or its high to define bearish resistance. Overlapping zones with existing live levels are discarded. Levels extend until a closing price breaks them, after which they remain as grey dotted historical traces. The described display limits the visible live levels and labels them with the RSI reading at the anchor candle.

A companion panel plots RSI, its signal line, and heat tracks for overbought, oversold, and midline compression conditions. These are visual aids for interpreting momentum and its extremes, not standalone evidence of predictive power. The material gives implementation details and default settings, but no backtest, trade rules for entries and exits, or results. Signal quality, parameter sensitivity, and performance across instruments and timeframes are not demonstrated.

Key ideas

• A bullish RSI crossover below 50 or bearish crossover above 50 triggers a search for a nearby anchor candle.
• The anchor candle defines a support or resistance zone, and overlapping live zones prevent duplicate levels.
• A level remains active until a bar closes through its boundary, then becomes a historical broken-level trace.
• The heatmap marks RSI extremes and highlights readings near the midline as compression.
• The document provides indicator logic but no evidence of trading performance.

Tags

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