RSI Momentum V1

The RSI Momentum V1 indicator identifies shifts in market trend and velocity by combining the principles of trend-following moving averages with momentum acceleration.

Usage

The indicator is displayed in a separate pane as a series of stacked colored columns. Traders can interpret the market state based on both the height and the color of these bars:

• Strong Bullish Momentum: Represented by bright green bars, indicating both a positive slope and increasing acceleration.
• Weakening Bullish Momentum: Represented by muted green bars, indicating a positive slope but decelerating momentum.
• Strong Bearish Momentum: Represented by bright red bars, indicating a negative slope and increasing downward acceleration.
• Weakening Bearish Momentum: Represented by muted red bars, indicating a negative slope but decelerating downward momentum.

The "apex" or maximum height of the columns represents a confluence of multiple calculated lengths, signaling a mature trend or potential exhaustion point.

Details

RSI Momentum V1 calculates twenty different Exponential Moving Averages (EMAs) using a base length and a scalar multiplier. For each EMA, the script evaluates two conditions:

1. Slope: Whether the current EMA value is higher than the previous value.
2. Momentum: Whether the rate of change is increasing (acceleration).

By stacking these results, the indicator provides a visual heat map of momentum across multiple time horizons simultaneously. This implementation refactors the original concepts from Ricardo Santos and JR into a modernized, alert-optimized format.

Settings

• Base Length: The starting period for the shortest EMA calculation. Increasing this value smooths the overall output.
• Scalar Length: The increment value used to differentiate the twenty EMA layers. A higher scalar increases the spread between the fastest and slowest calculated periods.
• Source: The price data used for the calculations (default is HLC3).

FAQ

How do I use the RSI Momentum V1?

You can use it to identify trend reversals when the colors shift from red to green, or to spot trend exhaustion when the column height reaches its maximum while colors begin to mute.

What do the different colors mean?

Bright colors indicate that momentum is accelerating in the direction of the trend, while muted colors indicate that the trend is still intact but losing its velocity.

How can I access this tool?

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