Dynamic RSI Regression Bands (Zeiierman)

You’re not just measuring the trend — you’re tracking when and where the trend deserves to be re-evaluated.

"A major momentum shift (RSI crossing OB/OS) signals a potential regime change, and thus, the trend model should be recalibrated from that point."

⚪ RSI-Based Channel Reset

• RSI is monitored continuously
  
• If RSI crosses above the Overbought level, the indicator resets and starts a new regression channel
  
• If RSI crosses below the Oversold level, the same reset logic applies
  
• These events act as “anchor points” for dynamic trend analysis
  

⚪ Regression Channel Logic

• A custom linear regression is calculated from the RSI reset point forward
  
• The lookback grows with each bar after the reset, up to a user-defined max
  
• Regression lines are drawn from the reset point to the current bar
  

⚪ Standard Deviation Bands

• Upper and lower bands are plotted around the regression line using the standard deviation
  
• These serve as dynamic volatility envelopes, great for spotting breakouts or reversals
  

⚪ Rejection Markers

• If price hits the upper/lower band and then closes back inside it, a rejection marker is plotted
  
• Helps visualize failed breakouts and areas of absorption or reversal pressure
  

• RSI Length – How many bars RSI uses. Shorter = faster.
  
• OB / OS Levels – Crossing these triggers a regression reset.
  
• Base Regression Length – Max number of bars regression can use post-reset.
  
• StdDev Multiplier – Controls band width from the regression line.
  
• Min Bars After Reset – Ensures channel doesn’t form immediately; waits for structure.
  
• Show Reset Markers – Triangles mark where RSI crossed OB/OS.
  
• Show Rejection Markers – Circles mark where the price rejected the channel edge.