Pro Cumulative Volume RSI

The Pro Cumulative Volume RSI indicator is a momentum oscillator that separates volume into buying and selling components to provide two distinct RSI calculations for a deeper analysis of market pressure. By analyzing volume distribution relative to candle closes, it helps traders identify shifts in momentum, potential reversals through divergences, and overbought or oversold conditions.

Usage

The indicator can be utilized to gauge the balance of power between buyers and sellers. Users should look for the following key signals:

• Crossovers: A "BUY" signal is generated when the Green (Buying) line crosses above the Red (Selling) line. Conversely, a "SELL" signal occurs when the Red line crosses above the Green line.
• Divergence: Yellow and orange circles indicate divergences between price action and the volume RSI, highlighting potential trend reversals.
• Background Intensity: The background color shifts between green and red based on the dominant pressure, with intensity levels reflecting the strength of the move.
• Status Table: A real-time dashboard provides the current RSI values, momentum status, and market pressure assessments at a glance.

Details

The script uses a sophisticated volume distribution algorithm to calculate pressure:

• Buying Volume (BV): Volume × (Close - Low) / (High - Low)
• Selling Volume (SV): Volume × (High - Close) / (High - Low)

Instead of applying the RSI formula to price changes, the indicator applies a 14-period Relative Strength Index calculation to the difference in volume pressures. This approach identifies whether volume is accumulating more aggressively on the buy-side or sell-side, regardless of the nominal price change.

Settings

Basic Settings

• RSI Period: Determines the number of periods used for the RSI calculation (default is 14).

Visual Settings

• Histogram Mode: Toggles between a line-only display and a combined line/histogram view.
• Background Coloring: Enables or disables the pressure-based background shading.
• Background Transparency: Adjusts the opacity of the background colors.

Signal Settings

• Crossover Signals: Shows or hides the BUY/SELL triangle markers.
• Divergence Detection: Enables the automatic spotting of bullish (DIV+) and bearish (DIV-) divergences.
• Divergence Lookback: Sets the lookback period for identifying pivot points for divergence.
• Signal Sensitivity: Adjusts the momentum threshold required to trigger crossover signals (Low, Medium, High).

Level Lines

• Show Level Lines: Toggles the visibility of the overbought, oversold, and midline levels.
• Overbought/Oversold Level: Customizes the threshold values for extreme pressure zones (default 70/30).

FAQ

How do I interpret the Green and Red lines?

The Green line represents the Buying Volume RSI, while the Red line represents the Selling Volume RSI. When the Green line is higher, buyers are in control; when the Red line is higher, sellers dominate.

What is the "Signal Sensitivity" setting?

The sensitivity setting defines how much distance must exist between the two RSI lines for a crossover signal to be validated. "High" sensitivity produces more signals with less required momentum, while "Low" requires a stronger shift.

How can I access the Pro Cumulative Volume RSI?

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