Double Relative Strength Index (2 RSI)

The Double Relative Strength Index (2 RSI) tool plots two RSI oscillators with different periods simultaneously to help traders identify market momentum shifts and potential entry points through the interaction of short-term and long-term trends.

Usage

The indicator is used to identify overbought and oversold conditions across two different time horizons. By default, it uses a 14-period RSI (longer-term) and a 7-period RSI (shorter-term). Traders typically look for the following:

• Crossovers: When the faster RSI (Length 2) crosses the slower RSI (Length 1), it can signal a change in short-term momentum.
• Overbought/Oversold Alignment: Identifying when both RSI lines enter the upper (70-80) or lower (20-30) bands to find high-probability reversal zones.
• Divergences: Comparing the peaks and troughs of the two RSI lines against price action.

Details

The script calculates two separate Relative Strength Index values using the Relative Moving Average (RMA) method, which is the standard calculation method for RSI. By layering a fast RSI over a slow RSI in a single window, the script reduces chart clutter and allows for a direct comparison of momentum speeds. The visual interface includes highlighted zones between levels 70-80 and 20-30 to emphasize extreme market conditions.

Settings

• Length of RSI 1: Determines the lookback period for the first (typically slower) RSI. Default is 14.
• Length of RSI 2: Determines the lookback period for the second (typically faster) RSI. Default is 7.

FAQ

How do I interpret the crossover alerts? The indicator includes alerts for when the two RSI lines cross. A crossover of the faster RSI above the slower one may indicate strengthening bullish momentum, while a cross under may indicate bearish momentum.

Can I change the overbought and oversold levels? While the horizontal lines and fills are set at specific levels (70, 80, 20, 30), you can modify the appearance or add custom levels via the "Style" tab in the indicator settings.

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