Ultra RSI

The Ultra RSI indicator is an advanced relative strength tool that offers versatile averaging methods and a Laguerre mode to provide a more precise gauge of momentum and trend strength.

Usage

The Usage section describes how the script can be used to identify trend direction and potential reversal zones. Traders can use the indicator to spot overbought conditions when the RSI value rises above the upper threshold (default 70) or oversold conditions when it falls below the lower threshold (default 30).

The tool includes a dynamic color-coding system for the RSI line and chart bars:

• Bright Green: RSI is above 50 and price is rising.
• Dark Green: RSI is above 50 but price is stalling or falling.
• Bright Red: RSI is below 50 and price is falling.
• Dark Red: RSI is below 50 but price is rising or stalling.

Details

This script enhances the traditional RSI calculation by allowing users to substitute the standard smoothing method with various filters. By selecting different filter types, such as ALMA or KAMA, traders can reduce lag or filter out market noise more effectively than with a standard SMA/EMA approach. Additionally, the indicator features a "Laguerre" mode, based on John Ehlers' work, which utilizes a 4-element Laguerre filter to create a highly responsive RSI with significantly less noise than traditional versions.

Settings

General Settings

• Source: Determines the price data used for calculations (e.g., Close, Open, HL2).
• Sampling Period: The lookback period for the RSI calculation.
• Filter Type: Selects the averaging method (EMA, DEMA, SMA, SMMA, WMA, VWMA, ALMA, COVWMA, KAMA).
• RSI Type: Choose between "Standard" and "Laguerre" modes.
• Volume Type: Select between "Default" (chart volume) and "Tick" volume for VWMA calculations.

Filter-Specific Settings

• Offset / Sigma: Parameters specifically for the ALMA filter type.
• Smoothing Constant Fast/Slow: Parameters specifically for the KAMA filter type.
• Overbought/Oversold Threshold: Adjustable levels for defining extreme market conditions.
• Gamma: Controls the damping factor when Laguerre mode is active.

FAQ

How do I access Ultra RSI?

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

What is the advantage of using DEMA or ALMA in the RSI?

Using advanced filters like DEMA (Double Exponential Moving Average) or ALMA (Arnaud Legoux Moving Average) helps reduce the inherent lag found in traditional RSI calculations, allowing for faster signal generation.

How does Laguerre mode differ from the Standard mode?

Laguerre mode uses a time-warping filter to produce a much smoother line that reacts more quickly to price changes without the "jitter" often associated with short-period standard RSIs.