HARSI - HeikinAshi RSI (with Bollinger Bands)

The HARSI - HeikinAshi RSI (with Bollinger Bands) indicator provides a smoothed Relative Strength Index (RSI) visualization by applying Heikin-Ashi calculations to multiple RSI lengths, offering a clearer perspective on momentum and trend reversals.

Usage

The HARSI tool can be utilized in the same manner as a traditional RSI but with reduced noise. Traders can monitor the Heikin-Ashi candle colors—green for bullish momentum and red for bearish momentum—to identify trend shifts within the oscillator space.

The integrated Bollinger Bands provide dynamic overbought and oversold thresholds. When the RSI candles reach the upper bands (Upper 1 and Upper 2), it suggests a potential overextended bullish state. Conversely, reaching the lower bands suggests an overextended bearish state. The central "Average" line acts as a baseline for momentum; crossovers above this line indicate bullish strength, while crossunders suggest bearish weakness.

Details

This script calculates four distinct RSI values based on user-defined lengths. These values are sorted and assigned to OHLC components (Open, High, Low, Close) to form a synthetic price structure. This structure is then processed through a Heikin-Ashi source function (referencing concepts from Allanster) to generate the final smoothed candles.

The accompanying Bollinger Bands are calculated using the standard deviation and exponential moving average of these RSI components, providing a volatility-adjusted envelope around the momentum oscillator.

Settings

• 1st Length: Sets the period for the first RSI calculation.
• 2nd Length: Sets the period for the second RSI calculation and influences the Bollinger Band smoothing.
• 3rd Length: Sets the period for the third RSI calculation.
• 4th Length: Sets the period for the fourth RSI calculation.

FAQ

How do I interpret the colored candles in the HARSI?

Green candles indicate that the Heikin-Ashi modified RSI is rising, signaling bullish momentum, while red candles indicate it is falling, signaling bearish momentum.

What do the Bollinger Bands represent on an RSI?

They represent dynamic volatility levels. Unlike static 70/30 levels, these bands expand and contract based on recent RSI activity, helping to identify extreme momentum relative to the current market environment.

How can I access HARSI - HeikinAshi RSI (with Bollinger Bands)?

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