Indicators: 6 RSI variations

The Indicators: 6 RSI variations tool provides a collection of unique Relative Strength Index adaptations designed to offer deeper insights into market momentum, trend strength, and volatility. By modifying the standard Wilder's RSI formula, these variations allow traders to incorporate volume, moving average smoothing, and secondary indicator data into their oscillator analysis.

Usage

This collection includes six distinct RSI variations that can be used for trend confirmation and identifying overbought/oversold conditions:

• RSI with Volume: Integrates trading volume into the calculation to determine if money is flowing into or out of the market, providing a more comprehensive view of price moves.
• RSI using Last Open: Compares the current close to the previous day's open. This produces a smoother oscillator line, with the standard RSI of the current close often used as a signal line.
• RSI using SMA: Replaces the standard Wilder’s Smoothing (similar to EMA) with a Simple Moving Average, resulting in a more responsive and "jagged" line compared to the original.
• RSI using EMA: Utilizes an Exponential Moving Average for the internal smoothing process, offering a different sensitivity profile than the standard version.
• RSI with Fibs: Automatically plots Fibonacci retracement levels based on the RSI's range, helping traders identify where momentum might stall or reverse.
• RSI of MACD: Applies the RSI formula to MACD values rather than price. This creates a range-bound oscillator (0-100) based on the momentum of the MACD itself.

Details

The standard RSI developed by J. Welles Wilder uses a specific smoothing method (Wilder's MA) on price changes. This script demonstrates the flexibility of the RSI formula by substituting the input source (MACD, Volume-weighted changes) or the internal smoothing mechanism (SMA, EMA).

For developers, the script is modularized into reusable functions. This allows for the easy extraction of logic such as the calcRsiVolume or wima functions for use in custom strategies or multi-indicator dashboards.

Settings

• Length: The lookback period used for the RSI calculation (default is 14).
• Overbought: The upper threshold level for the oscillator (default is 80).
• Oversold: The lower threshold level for the oscillator (default is 20).

FAQ

How do I access the Indicators: 6 RSI variations?

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

Which variation is best for high-volume markets?

The RSI with Volume is specifically designed for these environments, as it weights price changes by the volume transacted during those intervals.

Can I use these for automated alerts?

Yes, the script includes optimized alert conditions for overbought/oversold crossovers and mid-line (50) breaches.