Reverse-engineered RSI as an explicit next-bar price target

What reverse-engineered RSI constructs

The Relative Strength Index is a bounded oscillator built from exponentially smoothed average up and down moves over a defined lookback, then mapped back into price so a chosen reading becomes a forecasted support or resistance level. Reverse-engineered RSI is the algebraic inversion that solves for the next price consistent with a specified RSI value, using the same average-up and average-down series as the original oscillator. The inversion combines the current price with a signed increment built from the Wilder lookback, average up change, and average down change.

How the averages and increment are formed

Average up and down series are formed with an exponential period of two times the Wilder lookback minus one, using only the positive one-bar price change in each direction. When the signed increment is negative, the price increment is scaled by the complementary RSI fraction so the inverted level remains consistent with the chosen oscillator reading.

The same inversion formula accepts high, low, or close as the input series, so one construction can produce RSI-of-highs, RSI-of-lows, and RSI-of-close price bands without rewriting the algebra.

Ladders, scanners, and decayed turning points

After the oscillator has shed starting-value dependence, crossings of evenly spaced static RSI thresholds can be counted and inverted into a ladder of candidate price supports. A mechanical scanner can rank a watchlist by the nearest reverse-engineered RSI supports and flag a name when the latest completed low sits within a small percentage of one of those levels.

The decomposition method is a construction workflow that first locates RSI highs or lows, then reverse-engineers those oscillator readings into price supports or resistances. Detected RSI peaks and troughs can be mapped back into price and then decayed by a recency weight so older inverted supports lose visual and numerical priority. The figure of merit is that recency weight: it reduces the importance of older RSI peaks and troughs as they recede from the current bar.