VRSI-MARSI Strategy

The VRSI-MARSI Strategy indicator combines price-based and volume-based Relative Strength Index (RSI) moving averages to identify trend shifts and potential exhaustion points. It provides a visual framework for comparing momentum in price against momentum in volume to spot bullish and bearish divergences.

Usage

The script is primarily used to identify directional shifts based on the slope of the MARSI (Moving Average of RSI). Traders can use the relationship between price momentum and volume momentum to gauge the strength of a move.

• MARSI (Price Line): The dual-colored line representing the MA of the price RSI. A change from red to green indicates a shift to upward momentum, while green to red indicates downward momentum.
• MAVRSI (Volume Line): The neutral-colored line (orange/blue) representing the MA of the Volume RSI.
• Trend Confirmation: If price momentum is rising while volume momentum is falling or flattening, it may indicate a weakening bullish trend. Conversely, a falling price accompanied by rising volume momentum suggests strong bearish pressure.
• Overbought/Oversold: Use the standard RSI levels (20, 30, 70, 80) to identify extreme conditions, specifically watching how the MARSI reacts within these zones.

Details

The strategy calculates two distinct RSI values: one for price (close) and one for volume. To smooth out noise, a Simple Moving Average (SMA) is applied to both results.

• MARSI: SMA(RSI(close, Length), MA_Length)
• MAVRSI: SMA(RSI(volume, Length), MA_Length)

The strategy logic enters long when the MARSI slope turns positive and enters short when the MARSI slope turns negative. Orders are executed at the open of the bar following the trigger condition, consistent with standard backtesting protocols.

Settings

Main Parameters

• Length RSI: Sets the period for the price-based RSI calculation (Default: 9).
• Length VRSI: Sets the period for the volume-based RSI calculation (Default: 9).
• Length MARSI: Sets the smoothing period for the price RSI moving average (Default: 5).
• Length MAVRSI: Sets the smoothing period for the volume RSI moving average (Default: 5).

Strategy Settings

• Long exit: Enables or disables specific exit conditions for long positions.
• Short exit: Enables or disables specific exit conditions for short positions.

FAQ

How do I access the VRSI-MARSI Strategy?

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

Why is the RSI and VRSI not visible by default?

To keep the chart clean, only the smoothed moving averages (MARSI and MAVRSI) are shown. You can enable the raw RSI lines in the "Style" tab of the script settings by increasing their opacity.

When are the trades executed?

The strategy triggers a condition at the close of a bar, and the order is executed at the open of the very next bar. This ensures the backtest remains realistic and accounts for bar completion.