Multi-RSI Trend Indicator

The Multi-RSI Trend Indicator tool identifies high-probability trend reversals and continuations by comparing a short-term RSI against a long-term RSI baseline.

Usage

The Multi-RSI Trend Indicator is used to identify momentum shifts by observing the interaction between two different RSI periods.

• Uptrend Identification: A bullish signal is suggested when the short-term RSI (default 14) crosses above the long-term RSI (default 250) while the long-term RSI is above the 50 level. This indicates that short-term momentum is accelerating within a broader bullish context.
• Downtrend Identification: A bearish signal is suggested when the short-term RSI crosses below the long-term RSI while the long-term RSI is below the 50 level.
• Visual Cues: The area between the two RSI lines is filled when the short-term RSI is above the long-term RSI. Additionally, the long-term RSI line changes color based on whether it is above or below the 50 midpoint, providing a quick reference for the primary trend bias.

Details

The indicator relies on the concept of Relative Strength Index (RSI) convergence and divergence across different time horizons. By using a very long-term RSI (250 periods), the script establishes a "macro" momentum baseline. When the standard 14-period RSI crosses this baseline while the baseline itself is in a bullish (above 50) or bearish (below 50) zone, it filters out noise and focuses on high-probability trend shifts. This method can be further confirmed using other momentum oscillators like the MACD.

Settings

• RSI Source 1: The price data used to calculate the first RSI (default is Close).
• RSI Length 1: The lookback period for the short-term RSI (default is 14).
• RSI Source 2: The price data used to calculate the second RSI (default is Close).
• RSI Length 2: The lookback period for the long-term RSI (default is 250).

FAQ

How do I interpret the color changes in the long-term RSI?

The long-term RSI line turns green when it is above the 50 level (bullish bias) and red when it is below the 50 level (bearish bias).

Can I set alerts for trend crosses?

Yes, the indicator includes built-in alerts for bullish crosses (RSI 1 > RSI 2 while RSI 2 > 50) and bearish crosses (RSI 1 < RSI 2 while RSI 2 < 50).

How can I access the Multi-RSI Trend Indicator?

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