RSI I

The RSI I indicator provides a refined approach to Relative Strength Index analysis by utilizing Donchian channels derived from RSI high/low values to identify trend shifts and momentum exhaustion.

Usage

The Usage of the RSI I indicator centers on identifying crossovers between calculated lines and fixed threshold levels. Traders can look for "Up Cross" signals (green crosses) when the C Line crosses above the lower boundary (35) and "Down Cross" signals (red crosses) when the C Line crosses below the upper boundary (70). Additionally, the relationship between the black C Line and the blue Base Line serves as a secondary trend filter, where crossovers between these two lines indicate shifting market momentum.

Details

Unlike standard RSI which uses a single closing price, RSI I calculates RSI values for both high and low prices. It then applies a Donchian mid-point calculation (average of the highest high and lowest low over a lookback period) to these RSI values to create the C Line and the Base Line. This smoothing technique helps reduce noise and provides a "stepped" visual representation that highlights significant shifts in relative strength rather than minor fluctuations.

Settings

• RSI Length: Determines the lookback period for the internal RSI calculations (default is 5).
• CLine: Sets the lookback period for the Donchian calculation used to create the faster C Line (default is 9).
• BLine: Sets the lookback period for the Donchian calculation used to create the slower Base Line (default is 26).

FAQ

How do I interpret the green and red crosses?

A green cross appears when the C Line crosses above the 35 level, suggesting a bullish recovery from oversold conditions. A red cross appears when the C Line crosses below the 70 level, suggesting a bearish reversal from overbought conditions.

What is the purpose of the Base Line?

The Base Line represents a longer-term average of the RSI range. Crossovers between the faster C Line and the slower Base Line can be used to confirm trend direction or identify early momentum shifts.

How can I access this script?

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