In the February issue of Technical Analysis of STOCKS & COMMODITIES magazine David Sepiashvili presented a new idea for adjusting RSI overbought-oversold levels. The advantage of this approach is that it could be applied to multiple market conditions without regard to the calculation period. This standardization facilitates the usage of the indicator in Multiframe analysis.
The article contained two different algorithms for adjusting the width of the overbought and oversold bands for the RSI. This indicator draws RSI and the self-adjusting overbought-oversold levels.
If the parameter MA-Method is set to true the bands are calculated by moving average based algorithm. If it is set to false the alternative standard deviation algorithm will be used.