The RERSI was first developed by Giorgos Siligardos in the June 2003 issue of Stocks and Magazine. HPotter provided the initial implementation - from which this script is derived - so all credit to them (see: https://www.tradingview.com/script/Di9aE...).
In simple terms, RERSI plots lines on the price chart that reflect levels of the . E.g. if you set up a RERSI line at a level of 50, then price will touch that line when the standard indicator reads 50. Hopefully that makes sense, but compare the two if it doesn't.
Why is the RERSI useful if it's just plotting values? Well, it simplifies things, and enables you to get a clearer picture of trend direction, levels, trading signals, and it keeps your chart window uncluttered.
I've set up 5 RERSI lines to be plotted: Overbought and Oversold Levels, a Middle Level (generally leave this at 50), and then Down/Up . The latter two are loosely based on the work of Constance Brown (and they in turn were influenced by Andrew Brown), who posited that doesn't breach certain levels during trends (e.g. 40-50 is often a during an uptrend).
Play around with the levels, and the Length, to see how your particular market reacts, and where key levels may lie. Remember, this isn't meant as a stand-alone system (although I think there's potential to use it as such, especially with price action trading - which I guess wouldn't make it stand-alone then!!), and works best with confirmation from other sources.
Oh, and there's MTF capability, because I think that's useful for all indicators.
Any queries, please let me know.
- Update so script works with crypto markets (huge thanks to @NeoButane for pointing this out and providing the fix!)