UCTRPB Rsi Price Band [CoinTadpole]

UCTRPB (RSI Price Band) is an advanced indicator that reverse-engineers the RSI formula to calculate and visualize the exact price levels where RSI would reach specific overbought or oversold thresholds.

█ HOW IT WORKS

Unlike traditional RSI indicators that calculate momentum from price, this indicator works in reverse. It solves the RSI equation backwards to determine precisely what price movement would be required for RSI to reach your target levels.

The core algorithm considers:
• Current Average Gain and Average Loss derived from Wilder's smoothing method
• Your specified target RSI threshold
• The mathematical relationship between price change and RSI movement

By calculating the required gain or loss needed in the next bar to achieve the target RSI, the indicator projects dynamic support and resistance bands that shift in real-time with market conditions.

█ THE BANDS

🔴 Red Band (Overbought Zone)
The upper red gradient band represents the price range where RSI would enter overbought territory. Default settings: RSI 73-80. When price approaches or enters this zone, it signals potential selling pressure and reversal risk.

🟢 Green Band (Oversold Zone)
The lower green gradient band shows where RSI would become oversold. Default settings: RSI 25-28. This zone highlights potential accumulation areas and bounce opportunities.

█ WHY 25-28 INSTEAD OF 30?

The default oversold range is set to 25-28 rather than the traditional 30 for a critical reason: real-world bounces rarely occur exactly at RSI 30.

In actual market behavior, price typically:
1. Breaks below RSI 30
2. Consolidates and builds a base
3. Then initiates the actual reversal

Setting the zone at 25-28 captures these realistic bounce points. For more conservative entries, you can adjust to 23-25, though this will result in fewer trading opportunities.



As shown above, when price touches the red resistance band, it tends to reverse downward. Conversely, when price reaches the green support band, there is a high probability of a bounce. The indicator essentially pre-calculates where these RSI-based support and resistance levels will be.

█ THE REAL ADVANTAGE

Here's the problem this indicator solves:

When you want to accumulate during RSI oversold conditions, you face an impossible challenge - you cannot predict in advance what the exact price will be when RSI reaches oversold levels. Manually reverse-calculating this in real-time is practically impossible for human traders.

But for those who frequently reference RSI in their analysis, this indicator is invaluable. It tells you exactly where to place your limit orders BEFORE price gets there. You can prepare your entries in advance and stay one step ahead of traders who don't have this information.



The image above demonstrates price touching the oversold band and bouncing. Notice the labels on the right side:

🟢 Green Label: Shows the oversold zone price range and the percentage drop required to reach it (e.g., -9.09% ~ -10.92%)

🔴 Red Label: Shows the overbought zone price range and the percentage gain required to reach it (e.g., +13.8% ~ +23.34%)

These labels allow you to instantly see your potential entry points, take-profit targets, and exactly how far price needs to move - all at a glance.



█ INFO TABLE

The information table in the bottom-right corner provides a quick reference dashboard:
• Current RSI: Real-time RSI value
• Current Price: Latest closing price
• Oversold Zone: Price range for oversold territory
• RSI Range: Your configured oversold RSI levels
• Overbought Zone: Price range for overbought territory

This allows you to monitor all critical values without cluttering your chart.



█ PREDICTIVE CAPABILITY

If you've been wanting to buy at RSI oversold levels, this indicator shows you the target price BEFORE the drop happens. When price eventually reaches the green band, that's when RSI will be in oversold territory - giving you the foresight to prepare your orders in advance.

█ LINE SMOOTHING

The Line Smoothing setting (default: 15) controls how smooth the bands appear:
• Lower values: More responsive, sharper bands - better for volatile, low-cap assets with extreme price movements
• Higher values (15+): Smoother bands - recommended for high market cap coins with substantial liquidity and trading volume

█ RECOMMENDED SETTINGS

Timeframes: 15-minute and 1-hour charts work best

For Conservative Trading:
• Bitcoin Oversold Zone: 25-28
• Altcoins Oversold Zone: 23-28

These conservative settings help filter out false signals while still capturing meaningful reversal opportunities.

█ IMPORTANT NOTES

• This indicator shows where RSI "would be" if price moved there in the next bar
• The bands are dynamic and recalculate with each new bar
• Use in conjunction with other analysis methods for best results
• Past performance does not guarantee future results