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Bar Strength Index (BSI) by Cryptorhythms

Bar Strength Index (BSI) by Cryptorhythms

Intro
BSI is an totaly new and original indicator derived from Internal Bar Strength. It can be classified as similar to an RSI, but its method of calculation is very different so it sometimes gives an edge where RSI does not.

In the chart I have included RSI (red line) as a comparison for you to contrast BSI with.

Description
The formula for Internal Bar Strength is:
IBS = (close - low) / (high - low) * 100

The original IBS and thus this derivitive (BSI) are meant for higher timeframe analysis. Working best on daily, weekly or monthly charts. I take that original IBS formula and create something smoother and easier to understand - The Bar Strength Index!

Options
💠There is an option for smoothing which I recommend using.
💠Also options to make the scaling adaptive, or to leave it static.
💠A normalization option is available to create a bounded oscillator (easier for alerts/algos).
💠You can choose an MA type and length to create a signal line for it as well.
💠Lastly I also included the ability to setup overbought and oversold zones for better alert creation possibilities (crossovers / crossunders).

👍 We hope you enjoyed this indicator and find it useful! We post free crypto analysis, strategies and indicators regularly. This is our 77th script on Tradingview!