RSI (w/ Curve and Volatility)

The RSI (w/ Curve and Volatility) indicator is a centered triple oscillator designed to measure price strength, volatility, and long-term trend momentum within a single unified scale. By centering the Relative Strength Index (RSI), Relative Volatility Index (RVI), and the Coppock Curve on a -50 to +50 range, the tool provides a comprehensive view of market conditions to help traders identify pullbacks and trend shifts.

Usage

The tool is most effective when all three components align in direction or position relative to the zero line.

• RSI (Price Strength): Represented by the solid line, the centered RSI measures directional strength. Readings above 20 or below -20 often indicate overextended conditions where pullbacks are likely, providing opportunities to scale out of positions.
• RVI (Volatility): The thin lighter line tracks volatility. Values above 10 suggest bullish volatility (buy/cover), while values below -10 suggest bearish volatility (sell/short). This is used to confirm the bias established by price action.
• Coppock Curve (Trend): Displayed as the colored area/crosses, this component analyzes long-term momentum. A curve above 0 is considered bullish, and below 0 is bearish. It is particularly useful for identifying major price movements when the curve bounces off a level without crossing the zero line.

Details

The script integrates three distinct technical concepts:

1. Centered RSI: Unlike the traditional 0-100 scale, this version is shifted to -50/+50 to align with the zero-midpoint of the other oscillators.
2. Relative Volatility Index (RVI): Developed by Donald Dorsey, it calculates the direction of volatility using standard deviation rather than price change alone.
3. Coppock Curve: A momentum indicator originally designed for long-term monthly charts but adapted here for multi-timeframe trend identification using Rate of Change (RoC) and Weighted Moving Averages (WMA).

Settings

• Length: Sets the lookback period for the RSI and RVI calculations.
• WMA Length: Determines the smoothing period for the Coppock Curve's Weighted Moving Average.
• Long RoC Length: The longer period Rate of Change used in the Coppock Curve calculation.
• Short RoC Length: The shorter period Rate of Change used in the Coppock Curve calculation.

FAQ

How do I interpret the zero line in this indicator?

The zero line acts as the central pivot for all three oscillators. Generally, values above zero indicate bullish momentum or strength, while values below zero indicate bearish conditions.

What do the colors on the Coppock Curve represent?

The colors change based on the slope of the curve. A green color indicates rising momentum, while a red color indicates falling momentum, helping traders spot potential trend exhaustions early.

How can I access RSI (w/ Curve and Volatility)?

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