RSI Learning Script

/@version=5
strategy(
     "Learning Scripts RSI",
     overlay=true,
     initial_capital=1000,
     default_qty_type=strategy.percent_of_equity,
     default_qty_value=1,
     commission_type=strategy.commission.percent,
     commission_value=0.05
     )

// Variables
//// Inputs
// 1. Get RSI Long and short variables
rsiLength = input.int(14, "RSI Length", group="RSI")
rsiLongThreshold = input.int(70, "RSI Long Threshold", group="RSI")
rsiShortThreshold = input.int(30, "RSI Short Threshold", group="RSI")

// 2. Changed EMAs to inputs so we can change them as well
fastEmaLength = input.int(12, "Fast EMA Length", group="EMA")
slowEmaLength = input.int(21, "Slow EMA Length", group="EMA")

stopLossPercentage = input.float(3, "Stop Loss Percentage", group="Exits") * 0.01
takeProfitPercentage = input.float(3, "Take Profit Percentage", group="Exits") * 0.01

//// Bands
fastEma = ta.ema(close, fastEmaLength)
slowEma = ta.ema(close, slowEmaLength)

//// Exit lines
var line stopLossLine = na
var line takeProfitLine = na
if strategy.position_size == 0
    stopLossLine := na
    takeProfitLine := na
else
    line.set_x2(stopLossLine, bar_index)
    line.set_x2(takeProfitLine, bar_index)

// Logic
// 3. Get RSI and check if it is within the threshold
rsi = ta.rsi(close, rsiLength)
rsiWithinThreshold = rsi <= rsiLongThreshold and rsi >= rsiShortThreshold

//// Longs
// 4. Check if rsi is within threshold before buys and sells
if strategy.position_size == 0 and ta.crossover(fastEma, slowEma) and rsiWithinThreshold
    stopLoss = close * (1 - stopLossPercentage)
    takeProfit = close * (1 + takeProfitPercentage)

    stopLossLine := line.new(bar_index, stopLoss, bar_index, stopLoss, color=color.red)
    takeProfitLine := line.new(bar_index, takeProfit, bar_index, takeProfit, color=color.green)

    strategy.entry("Long", strategy.long)
    strategy.exit("SL / TP", "Long", stop=stopLoss, limit=takeProfit)

//// Shorts
// 4. Check if RSI is within threshold before buys and sells
if strategy.position_size != 0 and ta.crossunder(fastEma, slowEma) and rsiWithinThreshold
    stopLoss = close * (1 - stopLossPercentage)
    takeProfit = close * (1 + takeProfitPercentage)

    stopLossLine := line.new(bar_index, stopLoss, bar_index, stopLoss, color=color.red)
    takeProfitLine := line.new(bar_index, takeProfit, bar_index, takeProfit, color=color.green)

    strategy.entry("Short", strategy.short)
    strategy.exit("SL / TP", "Short", stop=stopLoss, limit=takeProfit)

// Plots
bandColor = fastEma > slowEma ? color.green : color.red
plot(fastEma, color=bandColor, linewidth=1)
plot(slowEma, color=bandColor, linewidth=3)

// 5. Base rsi color on band color
rsiColor = rsiWithinThreshold ? bandColor : color.white
plot(rsi, color=rsiColor, display=display.status_line) // Display it only in the status line