RSI Threshold Crossings for Directional Market Bias

Summary

This indicator turns an RSI reading into a persistent directional bias. It switches to bullish when the selected RSI crosses above an upper threshold and to bearish when it crosses below a lower threshold. Between those events, the previous bias remains in place, so the indicator does not change direction every time RSI moves around the middle of its range. The default thresholds are 60 and 40, and the regular RSI uses a configurable source and length.

A second option calculates RSI from the average of Heikin-Ashi open and close values, using a fixed 14-period length. The plots color the bias state, show RSI relative to the thresholds, and can optionally color price bars; alerts mark bias changes. The document provides indicator logic but no performance results or market-specific evidence. It does not define a complete trading system, entry sizing, or risk rules, so users would need to test the signal and set their own trade management.

Key ideas

• The bias turns bullish when RSI crosses above the upper threshold and bearish when it crosses below the lower threshold.
• The directional state persists until RSI crosses the opposite threshold.
• Users can choose regular RSI or RSI calculated from averaged Heikin-Ashi prices.
• Plots, optional bar coloring, and alerts make the bias changes visible on a chart.
• The indicator provides no backtest results or complete trade management rules.

Tags

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