Weighted Heiken Ashi Triple RSI

The Weighted Heiken Ashi Triple RSI indicator is a multi-layered momentum tool that combines three weighted RSI calculations with Heiken Ashi smoothing to provide a clearer view of market trends and potential reversal points.

Usage

The indicator can be used to identify momentum shifts and trend direction through its smoothed RSI average and integrated signaling system.

• Trend Identification: The central Moving Average line serves as a trend filter; an upward slope suggests bullish momentum, while a downward slope suggests bearish momentum.
• Buy Signals: Occur when the smoothed RSI average crosses above the moving average or rises above the 30 oversold level. These are highlighted by a green background and a "Buy" label.
• Sell Signals: Occur when the smoothed RSI average crosses below the moving average or falls below the 70 overbought level. These are highlighted by a red background and a "Sell" label.
• Volatility Channels: The integrated Bollinger Bands provide dynamic overbought and oversold thresholds. Touching or crossing these bands can indicate exhaustion in the current trend.

Details

The script calculates three distinct RSI values based on user-defined lengths. These values are then multiplied by assigned weights to create a composite RSI average. This approach allows users to prioritize short-term responsiveness or long-term stability within a single oscillator. By utilizing Heiken Ashi candles as the source (optional), the indicator further filters out price noise, resulting in a smoother oscillator line that is less prone to whipsaws.

Settings

General Settings

• Use Heiken Ashi candles as source: Toggles between standard candle closes and Heiken Ashi (OHLC/4) values for RSI calculations.
• Smoothing Factor: Controls the period for the initial SMA smoothing of the weighted RSI average.
• Moving Average Length: Determines the length of the WMA applied to the smoothed RSI, used for crossover signals.

RSI Periods & Weighting

• RSI Length 1/2/3: The lookback periods for the three individual RSI components.
• Weight 1/2/3: The multiplier assigned to each corresponding RSI length to determine its influence on the final average.

FAQ

How do I interpret the background colors?

Green backgrounds indicate that the internal logic has detected a bullish momentum crossover or a recovery from oversold levels, while red backgrounds indicate bearish crossovers or a retreat from overbought levels.

What is the advantage of using three RSIs?

Using three RSIs allows you to blend multiple timeframes of momentum. You can weight a fast RSI for responsiveness and a slow RSI for trend context, creating a more robust oscillator than a single RSI provides.

How can I access Weighted Heiken Ashi Triple RSI?

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