RSI Cyclic Smoothed v2

RSI Cyclic Smoothed (cRSI) is an RSI oscillator that removes the usual lag and replaces the fixed 30/70 levels with dynamic bands that adapt to the recent range of the oscillator itself. It is drawn in its own pane as a cRSI line with a low and a high band, and a move of the line outside a band marks an oversold or overbought extreme for the current market cycle. It is designed around the dominant cycle length, which you set in the settings.

How cRSI is calculated

1. A Wilder RSI is calculated with a length of half the Dominant Cycle Length (10 bars by default).
2. The RSI is smoothed with a phase-corrected filter: cRSI = 2/11 × (2 × RSI − RSI 4 bars ago) + 9/11 × previous cRSI. The phase correction cancels most of the smoothing delay.
3. Over the last two dominant cycles (40 bars by default), the indicator looks for the level below which 10% of cRSI values fall and the level above which 10% fall.
4. Those two levels are drawn as the Low Band and the High Band, so they widen in volatile phases and narrow in quiet ones.
5. Reference lines at 30 and 70 are drawn for comparison with the classic RSI.

Default settings

• Dominant Cycle Length: 20 (minimum 10)
• Band level: 10% on each side (fixed in the original script)
• Smoothing factor: 10 (fixed in the original script)

How to use it

• cRSI crossing back above the Low Band suggests the downside move is exhausted; crossing back below the High Band suggests the upside move is exhausted.
• Set Dominant Cycle Length to the typical swing length of your instrument, for example the average distance between two swing lows. A longer cycle gives a slower, smoother line and wider bands.
• Because the bands adapt, the same settings work across assets with different volatility, which fixed 30/70 levels do not.
• Combine extremes with trend direction and support or resistance levels instead of trading every touch.

Limitations

The indicator does not draw buy or sell markers, and results depend on a sensible Dominant Cycle Length for the instrument and timeframe. Bands are based on the recent window, so they shift when market behaviour changes. In a strong trend the line can stay outside a band for a long time.

About this version

Indie port for TakeProfit, changed from the original: it is written in Indie instead of Pine Script v4, the dashed 30 and 70 lines are drawn as plot lines, and the band search is ported step by step as in the original. The original was published on TradingView in September 2020. All three plotted lines matched TradingView on the same candles. Last updated: October 2026.

Credits

Risk warning

This indicator is a technical analysis tool for educational and informational purposes, not financial advice or a trading recommendation. Signals are calculated from past prices, can lag, repeat and fail, and do not guarantee future results. Trading financial instruments, especially with leverage, involves a high risk of loss. Test any settings on history and a demo account first, and never risk money you cannot afford to lose.