Open Interest RSI

29 Jun 2023

This indicator started as an experiment.
It is an RSI which is not based on the price but on the open interest.

It captures the momentum of the open interest in the same way as the RSI of the price.

Rules Open Interest (OI):
If the OI rises and the price rises = Bullish trend.
If the OI falls and the price continues to rise = bearish reversal possible
If the OI falls and the price continues to fall = Bullish reversal possible
If the OI rises and the price falls = Bearish trend

Since the OI RSI captures the momentum of the OI, it is recommended to include the price RSI for the analysis.

In the picture are marked different examples which show extreme situations

Example rose lines:
The price RSI and the OI RSI form a bearish divergence to the price and run parallel = strong bearish signal.

Example orange circles:
Price Falling. The price RSI is in the oversold zone and the OI RSI is above 53 or in the best case in the overbought zone. = Strong bullish signal

Example Blue circle:
The price RSI and the OI RSI are running parallel downwards and the price is also falling = bearish momentum.

As mentioned, this is an experiment. The tests were performed in the 4H chart

Have Fun

3 Ogo 2023

Nota Keluaran

The Normal RSI was added to the OI RSI because the interaction of both served as the origin for the idea of the script. Also a signaling was added:

Buy = oiRSI greater than 70 and rsi less than 30 or oiRSI less than 30 and rsi less than 30
Sell= oiRSI smaller 30 and rsi larger 70 or oiRSI larger 70 and rsi larger 70

Divergences were not taken into account.

For both RSI a VWMA can be added.
However, these were not considered in the signaling

27 Nov 2024

Nota Keluaran

Converted to Pinescript 6
The labeling of the RSI has been adapted