Chaos Weighted RSI

Chaos Weighted RSI is a Relative Strength Index that decides for itself how much smoothing each moment deserves. A Sevcik-method fractal dimension reading scores how disorderly recent price action is: chaotic tape slows the oscillator down to mute whipsaws, while efficient trends speed it back up so momentum is tracked closely. The familiar 70/30 levels, a color-shifting line, and automatic divergence detection round out the build.

How to Trade the Chaos Weighted RSI?

• Green line above 50: bullish momentum dominance; red below 50 flags the bearish side.
• 70/30 extremes: classic overbought and oversold territory, with gradient fills emphasizing how deep an excursion runs.
• Regular divergences: pivot-confirmed bullish and bearish divergences draw with markers and connecting lines, flagging potential reversals or momentum shifts.

The adaptive weighting is the point: a chaos value scaled between 0 and 1 drives the smoothing factor, so the same chart gets a slow, stable oscillator during consolidation and an agile one during expansion. Divergences inherit that stability — they form on self-smoothed pivots rather than on every minor fluctuation.

Chaos Weighted RSI Settings

• RSI Length: base calculation period before chaos weighting applies.
• Disorder Lookback: window used to measure chaos via the Fractal Dimension Index.
• Weight Sensitivity: how strongly chaos bends the smoothing — higher values smooth harder in disorderly markets.
• Divergence Strength: bars required on each side of a pivot; larger values confirm fewer, longer-horizon divergences.
• Show Bullish/Bearish Divergence: display toggles, alongside fill-color and background-transparency controls.

Frequently Asked Questions

Is this better than a standard RSI?

It is the same underlying oscillator with an adaptive layer, not a replacement. Traders frustrated by false overbought and oversold readings in chop stand to gain the most, since smoothing increases exactly when those false signals breed.

How does it compare to other adaptive RSI builds?

Most adaptive variants key off volatility; this one keys off complexity — how disorderly the path of price is — which is volatility-agnostic by design. Rainbow Adaptive RSI offers another take on adaptation if you want to compare approaches.

Where do I get the Chaos Weighted RSI?

Straight from this LuxAlgo Library page, free of charge. It also loads into LuxAlgo's AI, Quant, so you can experiment with the disorder controls right away.