A trader's twist on the standard RSI.

The Dynamic RSI is an oscillator which indicates if the underlying value is oversold or overbought. The standard RSI indicator gives an oversold signal if the indicator goes below 30 - 25 and gives an overbought signal when crossing the 70 - 75 border upwards. Standard RSI signals are quite rare, so a Dutch technical analyst developped the Dynamic RSI.

The Dynamic RSI has no fixed oversold or overbought levels. It has fluid Bollinger Bands (BB) around the RSI.

So if the RSI crosses the BB downwards, this indicates an oversold situation. When the Dynamic RSI subsequently re-enters the BB the market is improving and this can be seen as a buying opportunity.

When the RSI crosses the BB upwards it can be considered as the beginning of an overbought situation. When the RSI subsequently re-enters the BB it can be seen as a short signal.

Here below you find the Express code for the Dynamic RSI. Read our FAQ section on how to install and Express indicator.