RSI Trend

The RSI Trend indicator provides a comprehensive trend-following solution by combining the responsiveness of the Hull Moving Average (HMA) with the momentum tracking of the Relative Strength Index (RSI). It aims to help traders identify trend exhaustion, potential reversals, and optimal entry points by filtering trend signals through overbought and oversold conditions.

Usage

The Usage section focuses on how the various components of the RSI Trend tool interact to provide market insights:

• Trend Identification: The indicator plots a baseline derived from the Hull Moving Average. When the HMA trend is bullish, the indicator highlights the trend in green; when bearish, it switches to red.
• Dual RSI Crossover: The script utilizes two RSI lengths (Fast and Default). Crossovers between these two smoothed RSI lines can indicate shifts in short-term momentum relative to the broader trend.
• Overbought/Oversold (OB/OS) Filtering: By observing the RSI position relative to the 70 (Overbought) and 30 (Oversold) levels, traders can determine if a trend-following signal is occurring at an extreme exhaustion point or at the beginning of a fresh move.
• Sideways Detection: An integrated ADX calculation allows the indicator to highlight ranging or sideways markets (ADX < 20), helping traders avoid false signals during low-volatility periods.
• Bar Coloring: When enabled, the chart bars are colored according to the prevailing HMA trend, allowing for easy visual synchronization between price action and the oscillator.

Details

The RSI Trend script constructs its signals by applying the RSI formula to the Hull Moving Average itself. This "HMA of RSI" or "RSI of HMA" approach smooths out the noise typically found in standard RSI calculations while maintaining the low-latency benefits of the Hull Moving Average. By comparing a short-term HMA to a lagged version, the script generates Buy/Sell shape markers (triangles) that signify trend transitions. The inclusion of ADX provides a volatility filter, ensuring that trend signals are viewed within the context of market strength.

Settings

Hull Trend

• Hull Trend Length: Sets the period for the Hull Moving Average calculation used for the main trend signals.
• Show Baseline: Toggles the visibility of the Hull-based trend lines in the oscillator pane.

RSI Settings

• RSI Length1: The period for the fast RSI calculation.
• RSI Length2: The period for the slower, default RSI calculation.
• Over Bought: The threshold (default 70) used to define the overbought zone.
• Over Sold: The threshold (default 30) used to define the oversold zone.

Visuals

• Highlight Ranging/Sideways: When active, the background fill changes color when the ADX is below 20, indicating a lack of trend.
• Apply Barcolor: Toggles whether price bars on the main chart are colored based on the indicator's trend state.

FAQ

How do I interpret the buy and sell triangles?

The triangles represent a crossover in the underlying Hull Moving Average. A green triangle suggests a transition to a bullish trend, while a red triangle suggests a bearish shift.

What is the purpose of the blue fill area?

The blue fill appears when the "Highlight Ranging/Sideways" setting is on and the ADX is below 20, signaling that the market is currently in a non-trending or range-bound state.

How can I access RSI Trend?

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