OPEN-SOURCE SCRIPT
מעודכן Reversal & Continuation Index
$$I. OVERVIEW AND OBJECTIVE$$
The Reversal & Continuation Index (RCI) is a dual-engine Digital Signal Processing (DSP) tool designed to simultaneously measure two conflicting market forces: macro-level directional persistence and micro-level kinematic snapbacks.
Traditional oscillators often blend short-term momentum and long-term trend into a single output, resulting in a loss of nuance. The RCI architecture separates these elements, providing a clear structural wave (Continuation) overlaid with a highly responsive signal blade (Reversion) to identify high-probability turning points.
The Mechanism: The CI acts as the foundational structural anchor of the indicator. It measures the long-range efficiency of the market.
The Math: It calculates the net price displacement over a macro lookback period (default 34 bars) and divides it by the total absolute path distance traveled in that same period. This efficiency ratio is then smoothed via a Weighted Moving Average (default 5 bars) to eliminate micro-structural noise.
Interpretation:
Onset (Accelerating): When the absolute value of the CI is expanding, directional persistence is increasing. The trend is structurally sound and accelerating (visualized by bright green or bright red fills).
Exhaustion (Decelerating): When the absolute value of the CI is contracting, the trend's directional efficiency is mathematically decaying, even if the price is still slowly grinding in the trend's direction. This is an early warning of structural weakness (visualized by darker, muted colors).
The Mechanism: The RI acts as the fast, piercing kinematic blade. It operates on the same mathematical foundation as the CI but measures acute bar-to-bar snapbacks over a much tighter window (default 9 bars) without any artificial smoothing.
The Math: It normalizes the short-term sum of price differences by the absolute sum of those differences, bounding the result strictly between -100 and +100.
Interpretation: The RI identifies overextended, short-term kinematic momentum. It whips rapidly between extremes, highlighting the exact moments when acute price momentum is overbought or oversold.
The true power of the RCI lies in the convergence of its two independent indices. The indicator does not generate signals based purely on overbought/oversold levels, but rather on the interaction between macro exhaustion and micro reversion.
Bullish Convergence Reversal:
Occurs when the macro Bearish Trend enters a state of Exhaustion (the negative CI wave begins contracting toward zero), AND the fast Reversion Index simultaneously crosses above the zero line. This indicates that the long-term selling pressure is mathematically exhausted just as short-term momentum shifts bullish.
Bearish Convergence Reversal:
Occurs when the macro Bullish Trend enters a state of Exhaustion (the positive CI wave begins contracting toward zero), AND the fast Reversion Index simultaneously crosses below the zero line. This indicates that the long-term buying pressure is mathematically exhausted just as short-term momentum shifts bearish.
$$V. CONCLUSION$$
The Reversal & Continuation Index moves beyond basic momentum tracking. By explicitly tokenizing when a macro trend loses its directional persistence and timing the entry with a short-term kinematic fracture, the RCI provides a rigorous framework for identifying institutional phase shifts.
The Reversal & Continuation Index (RCI) is a dual-engine Digital Signal Processing (DSP) tool designed to simultaneously measure two conflicting market forces: macro-level directional persistence and micro-level kinematic snapbacks.
Traditional oscillators often blend short-term momentum and long-term trend into a single output, resulting in a loss of nuance. The RCI architecture separates these elements, providing a clear structural wave (Continuation) overlaid with a highly responsive signal blade (Reversion) to identify high-probability turning points.
The Mechanism: The CI acts as the foundational structural anchor of the indicator. It measures the long-range efficiency of the market.
The Math: It calculates the net price displacement over a macro lookback period (default 34 bars) and divides it by the total absolute path distance traveled in that same period. This efficiency ratio is then smoothed via a Weighted Moving Average (default 5 bars) to eliminate micro-structural noise.
Interpretation:
Onset (Accelerating): When the absolute value of the CI is expanding, directional persistence is increasing. The trend is structurally sound and accelerating (visualized by bright green or bright red fills).
Exhaustion (Decelerating): When the absolute value of the CI is contracting, the trend's directional efficiency is mathematically decaying, even if the price is still slowly grinding in the trend's direction. This is an early warning of structural weakness (visualized by darker, muted colors).
The Mechanism: The RI acts as the fast, piercing kinematic blade. It operates on the same mathematical foundation as the CI but measures acute bar-to-bar snapbacks over a much tighter window (default 9 bars) without any artificial smoothing.
The Math: It normalizes the short-term sum of price differences by the absolute sum of those differences, bounding the result strictly between -100 and +100.
Interpretation: The RI identifies overextended, short-term kinematic momentum. It whips rapidly between extremes, highlighting the exact moments when acute price momentum is overbought or oversold.
The true power of the RCI lies in the convergence of its two independent indices. The indicator does not generate signals based purely on overbought/oversold levels, but rather on the interaction between macro exhaustion and micro reversion.
Bullish Convergence Reversal:
Occurs when the macro Bearish Trend enters a state of Exhaustion (the negative CI wave begins contracting toward zero), AND the fast Reversion Index simultaneously crosses above the zero line. This indicates that the long-term selling pressure is mathematically exhausted just as short-term momentum shifts bullish.
Bearish Convergence Reversal:
Occurs when the macro Bullish Trend enters a state of Exhaustion (the positive CI wave begins contracting toward zero), AND the fast Reversion Index simultaneously crosses below the zero line. This indicates that the long-term buying pressure is mathematically exhausted just as short-term momentum shifts bearish.
$$V. CONCLUSION$$
The Reversal & Continuation Index moves beyond basic momentum tracking. By explicitly tokenizing when a macro trend loses its directional persistence and timing the entry with a short-term kinematic fracture, the RCI provides a rigorous framework for identifying institutional phase shifts.
הערות שחרור
signalsסקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
סקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.