This “heatmap” type indicator plots the returned values of the RSI oscillator for all its calculated periods between the values of “StartPeriod” up to “MaxScale”. Each value is colored according to its degree of over-sold (in red) and over-bought (in green).
The ensemble thus forms a cloud of colored dots making it easy to better identify how the market behaves in the different dimensions.
It is thus possible to determine the best opportunities for positions in trend following or mean reversion without wondering what is the best period of observation with respect to the instrument and the timeframe used. .
Many ideas can sprout from the observation of this type of indicator, I let you work 🙂
Idea came from another indicator development from that topic.
//PRC_RSI multiperiods HeatMap | indicator
//Plot an heatmap of the RSI range of periods
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
// --- settings
startperiod=20 //start period of the loop
maxscale=500 //end period of the loop
Step=10 //period step of the loop
// --- end of settings
iPeriod=startperiod //first period to test is..startperiod
while iPeriod<=maxscale do
// --- indicator calculation
osc = rsi[iperiod]
R = max(0,50+(200-(result-50)*12))
G = max(0,50+(200+(result-50)*12))
iPeriod=max(startperiod,iPeriod+Step) //increase indicator period for next loop iteration
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