RSI of MAs

The RSI of MAs indicator is a momentum tool that calculates a moving average of price for a specified period and then applies the Relative Strength Index (RSI) formula to that averaged value. This method provides a smoother RSI output by filtering out minor price fluctuations before the momentum calculation, helping traders identify trend direction and potential reversals through a customizable signal line.

Usage

The Usage section focuses on interpreting the relationship between the RSI of Moving Averages (RSIoMA) and its Signal Line:

• Bullish Bias: A bullish outlook is indicated when the RSIoMA line is above the Signal Line.
• Bearish Bias: A bearish outlook is indicated when the RSIoMA line is below the Signal Line.
• Trend Reversals: Crossovers between the RSIoMA and the Signal Line can serve as early warnings for potential changes in price action.
• Customization: Users can experiment with different Moving Average types for the base calculation (e.g., EMA for faster response or SMA for stability) and various Signal Line methods (including QQE options) to find the combination that best suits their specific timeframe and asset.

Details

The script functions by first smoothing price data using one of over 30 available moving average types. Once the base "MA" is established, the standard RSI calculation is applied to that series rather than the raw price.

The implementation includes:

• Extensive MA Library: Support for various algorithms ranging from standard SMAs/EMAs to more complex types like Jurik (JMA), Kaufman (KAMA), and Fractal Adjusted (FRAMA).
• Flexible Signal Line: Includes traditional moving averages and two versions of the Quantitative Qualitative Estimation (QQE) logic for the signal line.
• Visual Enhancements: Includes an optional ribbon filling between the RSIoMA and the Signal Line to quickly visualize the current trend strength and direction.

Settings

General Settings

• MA Period: The length or lookback period used to calculate the initial moving average.
• RSI Period: The length or lookback period used for the RSI calculation applied to the MA.
• RSI MA Mode: Selection of the specific moving average algorithm used for the base calculation.
• Apply Ribbon Filling?: Toggles the background color between the RSIoMA line and the Signal Line.

Signal Line Settings

• Signal Line: Determines the calculation method for the signal line (SMA, EMA, RMA, WMA, or QQE).
• Signal Line Period: The length used for the signal line calculation.
• QQE Smoothing: Adjusts the smoothing period specifically when a QQE signal line is selected.
• QQE Factor: Adjusts the multiplier for the QQE bands when used as a signal line.

Specific MA Parameters

• Various settings (Offset, Sigma, Phase, Power, etc.) are available to fine-tune specific advanced moving averages like ALMA, LSMA, JMA, and others when they are selected in the "RSI MA Mode" dropdown.

FAQ

How do I use the RSI of MAs?

The indicator is primarily used to identify momentum shifts. Look for crossovers between the RSIoMA and its signal line, and observe the position of the lines relative to standard RSI levels (like 50) to determine trend strength.

What is the difference between QQE 1 and QQE 2 signal lines?

Both versions use Wilders-based volatility bands, but QQE 2 incorporates additional logic for trend tracking and band-trailing that can provide more reactive signals in volatile markets compared to the standard QQE 1 calculation.

How can I access RSI of MAs?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.