RSI Law Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW RSI Law v1.0.0
--
-- RSI Law uses a short RSI (period 5) on the 5-minute chart, as described in
-- the IQOptionWiki article. The setup is the RSI leaving its extreme zone:
-- price was oversold or overbought, and the candle closes with RSI back across
-- the 30 or 70 line. Because RSI(5) is very sensitive, the line crosses often.
--
-- HIGHER: RSI(5) was at or below 30 and closes back above 30.
-- LOWER:  RSI(5) was at or above 70 and closes back below 70.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW RSI Law",
    short_name = "IQOW RSI Law",
    overlay = false
}

input_group {
    "1. RSI",
    rsi_period = input (5, "RSI period", input.integer, 2, 100),
    oversold_level = input (30, "Oversold level", input.double, 5, 45, 1, false),
    overbought_level = input (70, "Overbought level", input.double, 55, 95, 1, false)
}

input_group {
    "Display and advice",
    lines_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    rsi_color = input { default = "#56CEFF", type = input.color },
    level_color = input { default = rgba(255, 255, 255, 0.30), type = input.color },
    line_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

rsi_value = rsi (close, rsi_period)

local rsi_now = get_value (rsi_value, nil)
local rsi_before = get_value (rsi_value [1], nil)

local levels_are_valid = oversold_level < 50 and overbought_level > 50
local data_is_ready = levels_are_valid and rsi_now ~= nil and rsi_before ~= nil

-- Event: RSI crosses back across its level on this candle.
local rsi_recovers = data_is_ready and rsi_before <= oversold_level and rsi_now > oversold_level
local rsi_fades = data_is_ready and rsi_before >= overbought_level and rsi_now < overbought_level

higher_setup = conditional (rsi_recovers)
lower_setup = conditional (rsi_fades)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if lines_visible then
    fill_area (overbought_level, oversold_level, "Neutral zone", rgba (255, 255, 255, 0.04))
    hline (overbought_level, "Overbought", level_color, 1)
    hline (50, "Middle", rgba (255, 255, 255, 0.15), 1)
    hline (oversold_level, "Oversold", level_color, 1)
    plot (rsi_value, "RSI", rsi_color, line_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "RSI Law HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.bottom,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "RSI Law LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.top,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end