RSI Plus

The RSI Plus indicator is a multi-functional momentum tool that enhances the standard Relative Strength Index with divergences, smoothed calculations, and dynamic level tracking. It aims to provide a more comprehensive view of market strength and potential reversals by integrating MFI, Ultimate RSI, and various smoothing methods into a single oscillator.

Usage

The Usage section highlights how to interpret the various visual cues provided by the indicator:

• Momentum Zones: The oscillator changes color based on its position relative to the 50 level; green indicates bullish zones (above 50), and red indicates bearish zones (below 50). A 4-color scheme is available for more granular gradient tracking.
• Divergence Detection: The tool automatically identifies Regular and Hidden divergences between price and the oscillator, marking potential trend exhaustion or continuation.
• Price Projection: By enabling the "Show Entered RSI Price Level" feature, the script calculates and displays the approximate price required for the RSI to reach a user-defined level (defaulting to 55).
• Buy/Sell Signals: Circular markers appear at extreme high and low levels to highlight potential overbought or oversold conditions.
• Multi-Timeframe Analysis: Users can overlay a higher timeframe RSI (HTF) on the current chart to maintain perspective on broader market trends.

Details

The script is built to be highly versatile, offering four different oscillator types: standard RSI, Money Flow Index (MFI), an average of the two (AVG), or the Ultimate RSI. It includes a sophisticated smoothing engine that allows users to apply various moving average types (such as VIDYA, JMA, HMA, or ALMA) to the oscillator line to filter out market noise. Additionally, a dispersion cloud can be enabled to visualize the variance around the moving average, helping to identify periods of high volatility or consolidation.

Settings

• Option: Choose between RSI, MFI, AVG, or U_RSI as the primary calculation.
• Length: Sets the lookback period for the primary oscillator.
• Oversold/Overbought: Defines the threshold levels for extreme momentum readings (default 30/70).
• Show Smoothed MFI|RSI: Enables a secondary, smoother line based on the primary oscillator.
• HTF Selection: Allows for discrete steps, multiples of the current timeframe, or a fixed higher timeframe for the HTF overlay.
• RSI-based MA: Select from over 20 different moving average types to apply to the oscillator.
• Divergence Type: Choose to display Regular, Hidden, Both, or None.
• Pivot: Adjusts the sensitivity for detecting swing highs and lows for divergence plotting.

FAQ

How do I interpret the colored background on the oscillator? The color transitions from green to red based on whether the value is above or below the 50 midpoint, representing the dominant market bias.

Can I change the level for the price projection? Yes, you can adjust the "Entered RSI Input" in the settings to see what price level would correspond to any specific RSI value, such as 50 or 60.

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