This system combines dynamic price levels with the RSI indicator to filter out false signals and highlight high-probability setups. With clear BUY and SELL arrows directly on the chart and an RSI confirmation panel below, it’s easy to use on TradingView for crypto, forex, or indices. A practical tool for both beginners and experienced traders who want clarity and precision.

Description of the Buy/Sell Trading System with RSI

This trading system combines the simplicity of dynamic price-based levels with the strength of the RSI indicator as a confirmation filter.
The result is a practical and intuitive tool to use on TradingView, providing clear and easy-to-read signals.

System Logic:

• The system calculates two dynamic levels based on the high and low of the last two candles:

  • BuyLvl (green): calculated from the high two bars ago.

  • SellLvl (red): calculated from the low two bars ago.

• Two horizontal lines are plotted on the chart and constantly updated.

• When the price crosses above the BuyLvl, a BUY signal appears.

• When the price crosses below the SellLvl, a SELL signal appears 

RSI Filter:

To reduce false signals and improve reliability, the system uses the RSI (Relative Strength Index) with a 14-period setting:

• A BUY signal is valid only if RSI is below 50 → meaning the market is recovering from weakness.

• A SELL signal is valid only if RSI is above 50 → meaning the market has shown strength and may reverse. This filter makes signals more selective and consistent with the overall market context.

Advantages of the System:

Simple and intuitive – easy to understand, even for beginners.
Clear visual signals – green arrows for BUY and red arrows for SELL directly on the chart.
Customizable – you can adjust the RSI length or confirmation levels to match your trading style.
TradingView alerts – you can set alerts to receive notifications whenever a confirmed signal appears.

Possible Applications:

• Intraday trading on crypto pairs, indices, or forex.

• Swing trading, by following signals on higher timeframes (e.g., 1H, 4H, Daily).

• Studying false breakouts: the system helps distinguish valid breakouts from weak ones.

Conclusion:

This trading system combines dynamic levels with an RSI filter, offering a simple yet effective approach to spotting entry and exit opportunities.
It doesn’t replace trading experience or proper risk management, but it’s a great starting point for anyone looking for a clear, visual, and practical tool to add to their trading arsenal.
Try it on different time frames.

SCRIPT:

//@version=5
indicator("Livelli Buy/Sell con RSI Filtro", overlay=true)

// --- Calcolo livelli ---
BuyLvl  = high[2]
SellLvl = low[2]

// --- Linee sul grafico ---
plot(BuyLvl, color=color.green, linewidth=2, title="BuyLvl")
plot(SellLvl, color=color.red, linewidth=2, title="SellLvl")

// --- RSI nel pannello separato ---
rsiLength = 14
rsi = ta.rsi(close, rsiLength)
rsiOB = 70
rsiOS = 30
rsiColor = rsi > 50 ? color.red : color.green
rsiPlot = plot(rsi, title="RSI", color=rsiColor)
hline(50, "RSI Midline", color=color.gray)
hline(rsiOB, "Overbought", color=color.red)
hline(rsiOS, "Oversold", color=color.green)

// --- Segnali di incrocio ---
rawLongSignal  = ta.crossover(close, BuyLvl)
rawShortSignal = ta.crossunder(close, SellLvl)

// --- Filtro RSI ---
filteredLong  = rawLongSignal  and rsi < 50   // BUY solo se RSI < 50
filteredShort = rawShortSignal and rsi > 50   // SELL solo se RSI > 50

// --- Frecce sul grafico ---
plotshape(series=filteredLong,  style=shape.triangleup,   location=location.belowbar, color=color.green,  size=size.small, text="BUY")
plotshape(series=filteredShort, style=shape.triangledown, location=location.abovebar, color=color.red,    size=size.small, text="SELL")

// --- Alert ---
alertcondition(filteredLong,  title="BUY Alert",  message="Segnale BUY confermato da RSI")
alertcondition(filteredShort, title="SELL Alert", message="Segnale SELL confermato da RSI")

This article does not contain investment advice. Every investment and trading move involves risk; readers should conduct their own research when making a decision.
THE AUTHOR'S OPINIONS ARE FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE FINANCIAL, INVESTMENT, OR OTHER ADVICE.

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