RSI Signals

The RSI Signals module detects momentum reversals that occur inside overbought or oversold regions. It’s built to identify when the market transitions from exhaustion to recovery (bullish) or from strength to weakness (bearish).

Each signal is timed and filtered to ensure only high-quality reversals are displayed — removing noise from typical RSI crossovers.

RSI Reversal Signals

This system tracks RSI’s behavior near its extreme zones and looks for confirmation that momentum is shifting in the opposite direction.

Each RSI reversal is clearly shown both inside the RSI pane and optionally on the main price chart.

• In RSI Pane:

  • Green ▲ marker — Bullish reversal (from oversold zone).

  • Red ▼ marker — Bearish reversal (from overbought zone).

• On Chart (optional): The same arrows can be shown on the main chart

This gives a clear connection between RSI reversals and corresponding price action moves.

Deviation Mode (+1 / +2)

When enabled, Deviation Mode extends each RSI signal with dynamic follow-through levels labeled +1 and +2.

These represent progressive momentum retests measured by volatility distance from the signal candle.

• +1 Cross: The first expansion move confirming early continuation.

• +2 Cross: The second stage showing stronger directional conviction.

Each deviation level is drawn as a line and can trigger its own alert when price reaches it.

RSI Crossover Signals (Yellow Dots)

The yellow dots on the indicator serve as momentum execution signals. They are strictly triggered by a crossover between the RSI Line and its Signal Line (Moving Average), but only when momentum moves outside of the central purple neutral zone.

To see the yellow dot crossover signals on your oscillator, you must first enable the signal line in the indicator settings:

Dot Location	Market Zone	Momentum Direction	Action
Above Purple Band (Red Zone)	Overbought	Turning Downward	Look to Sell / Take Profit
Below Purple Band (Green Zone)	Oversold	Turning Upward	Look to Buy / Accumulate

By filtering out the middle zone, these dots specifically highlight high-probability overbought and oversold turning points.