RSI adjusted SuperTrend

The RSI adjusted SuperTrend indicator provides a variation of the classic SuperTrend trend-following tool by incorporating Relative Strength Index (RSI) dynamics to dynamically expand the trend bands. This allows for a more responsive trend tracking mechanism that adjusts based on market momentum.

Usage

The RSI adjusted SuperTrend is used to identify market trends and potential reversal points. Unlike the standard SuperTrend which relies solely on the Average True Range (ATR), this version modifies the bands using a percentage-like value derived from the RSI.

• Bullish Trend: When the price is above the adjusted lower band, the line is typically green, suggesting an uptrend.
• Bearish Trend: When the price is below the adjusted upper band, the line is typically red, suggesting a downtrend.
• Comparison: Users can toggle the "Show Regular ST" setting to compare the RSI-adjusted version against the standard SuperTrend. This helps in visualizing how momentum-based adjustments change the sensitivity and width of the trend bands.

Details

The script calculates the adjustment factor by taking the RSI value and subtracting 50. The absolute value of this result is then divided by a user-defined denominator (100 or 50) to create a decimal "aRSI" value.

The adjustment is applied as follows:

• The lower band is further decreased by multiplying itself by the aRSI.
• The upper band is further increased by multiplying itself by the aRSI.

This logic ensures that when the RSI moves significantly away from its midpoint (indicating strong momentum), the SuperTrend bands expand further, potentially providing more room for the trend to breathe before a reversal is triggered.

Settings

Main Settings

• Factor: The multiplier used for the ATR calculation, determining the distance of the bands from the price.
• Length ATR: The lookback period for the Average True Range calculation.
• Length RSI: The lookback period for the RSI calculation used in the band adjustment.
• Divide RSI value by: A toggle to choose the denominator for the RSI adjustment calculation (100 or 50), affecting the intensity of the band expansion.
• Show Regular ST: When enabled, displays the standard SuperTrend calculation on the chart alongside the adjusted version.

FAQ

How do I interpret the RSI adjustment?

The adjustment expands the bands based on how far the RSI is from the 50 level. A higher adjustment factor (dividing by 50 instead of 100) will make the bands wider during periods of high momentum.

Can I use this for trend reversals?

Yes, reversals are indicated when the price crosses the plotted bands. The script includes built-in alerts for when the RSI Adjusted SuperTrend direction changes.

How can I access RSI adjusted SuperTrend?

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