Hayden's Advanced Relative Strength Index (RSI)

The Hayden's Advanced Relative Strength Index (RSI) indicator is a comprehensive technical analysis tool designed to implement the trading rules and methodologies detailed in John Hayden's "The Complete RSI". It provides a multi-faceted approach to momentum trading by integrating trend state detection, price targeting, and advanced divergence identification.

Usage

The script is used to identify trend phases, potential reversals, and price objectives based on RSI behavior.

Trend State Detection The indicator classifies the market into three states: Bullish, Bearish, or Chop.

• Bullish Trend: Indicated when RSI stays primarily between the 80 and 40 levels.
• Bearish Trend: Indicated when RSI stays primarily between the 60 and 20 levels.
• Chop/Danger Zones: Transition zones are highlighted via background fills and bar coloring, signaling when a trend may be exhausting or entering a range-bound state.

Price Targeting (RSI-to-Price) One of the core features is the ability to project where the price will be if the RSI reaches a specific target level (e.g., 80 or 20). This allows traders to set objective profit targets or stop levels based on momentum milestones.

Divergence and Momentum Discrepancy The tool automatically plots simple and hidden divergences. According to Hayden's rules:

• Simple Bearish Divergence in an uptrend suggests the trend is intact but reaching a temporary peak.
• Hidden Bullish Divergence serves as a strong trend continuation signal during pullbacks.

Details

The indicator implements several complex calculations to align with "The Complete RSI" system:

• Volatility-Adjusted RSI: An optional setting that scales the RSI length based on timeframe volatility, allowing for consistent interpretation across different periodicities (e.g., matching a 15-minute chart's RSI to a 60-minute chart's characteristics).
• Moving Averages on RSI: It utilizes a 9-bar SMA and a 45-bar EMA/WMA directly on the RSI line. The crossover of these averages is a primary filter for trend health.
• Stochastic [X]: Users can overlay a Stochastic oscillator calculated from over 20 different inputs (RSI, CCI, OBV, Volume, etc.) to refine entry and exit timing.

Settings

Relative Strength Index

• Source: The price source used for RSI calculation (Default: Close).
• RSI Length: The lookback period for the RSI (Default: 14).
• Length-Volatility Adjusted: Adjusts the RSI period to account for volatility across timeframes.
• Candle or Bar or Line: Choose how the RSI itself is rendered in the indicator pane.
• RSI 45 WMA or EMA: Select the moving average type for the 45-period RSI filter.

Hayden Triple Trend State

• Show Hayden triple trend state H-line fill: Toggles the background coloring for trend states.
• Show Hayden triple trend state Chart Bar Color: Applies trend-based coloring to the price bars on the main chart.
• Precise RSI Levels: Custom thresholds for defining the boundaries between Bull, Bear, and Chop states.

Divergences

• Pivot Lookback: Controls the sensitivity of divergence detection by setting left and right bar requirements.
• Plot [Type] Divergence: Individual toggles for Simple Bullish, Hidden Bullish, Simple Bearish, and Hidden Bearish signals.

Tickers & Labels

• Show Tickers: Displays a data table with real-time RSI metrics.
• Show RSI-to-Price Labels: Displays projected price targets based on specified RSI levels.

FAQ

How do I interpret the trend background colors? The background fill represents the current Hayden Trend State. Green typically represents a bullish regime (RSI 80-40 range), red represents a bearish regime (RSI 60-20 range), and gray or neutral colors indicate "Chop" or trend transition zones.

What is the "RSI-to-Price" feature? This calculates the exact price required for the RSI to hit a specific numerical value. It is used to set realistic price targets based on momentum exhaustion levels defined in the settings.

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.