Guppy RSI

The Guppy RSI indicator applies the Guppy Multiple Moving Average (GMMA) concept to the Relative Strength Index (RSI), offering a multi-layered perspective on momentum trends and reversals across different timeframes.

Usage

The tool displays three distinct RSI baselines (Fast, Normal, and Slow) and overlays multiple moving average groups on top of them. Traders can use these groups to identify momentum strength and potential trend shifts:

• Momentum Groups: The indicator plots Fast, Normal, and Slow moving average ribbons derived from the RSI. When the ribbons are expanding and colored green, it suggests strong bullish momentum. Conversely, contracting or red ribbons suggest weakening momentum or bearish transitions.
• Bar Coloring: The script includes a bar coloring feature based on the relationship between two moving averages of the Normal RSI. This helps align price action with the underlying RSI momentum.
• Transitions: Crosses between the short-term and long-term averages within the RSI pane can signal early trend reversals before they are fully apparent on the price chart.

Details

The GMMA (Guppy Multiple Moving Average) is traditionally used on price to identify trend agreement between short-term and long-term traders. By applying this logic to the RSI, this indicator filters out price noise and focuses purely on momentum. The script calculates three RSI lengths and then applies a series of moving averages (ranging from period 5 to 100) to each, creating a "ribbon" effect within the oscillator pane.

Settings

• RSI Fast Length: Determines the lookback period for the Fast RSI calculation.
• RSI Norm Length: Determines the lookback period for the Normal RSI calculation.
• RSI Slow Length: Determines the lookback period for the Slow RSI calculation.
• Exponential MA (Fast/Norm/Slow): Toggles between Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) for each respective ribbon group.
• Bar Color MA Length 1/2: Sets the two periods used to determine the logic for the candle coloring on the chart.

FAQ

How do I interpret the colors of the ribbons?

Bright green indicates strong bullish momentum, while dark green suggests a bullish trend that might be slowing. Bright red indicates strong bearish momentum, and dark red suggests a bearish trend that might be losing steam.

What do the shaded background areas represent?

The shaded areas represent the raw RSI values for the Fast, Normal, and Slow lengths, providing a visual baseline for the moving average ribbons.

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.