Godmode RSI

The Godmode RSI indicator provides a comprehensive momentum and trend analysis tool by combining a modified Relative Strength Index (RSI) with Wavetrend-based Godmode oscillators. This tool helps traders identify overbought and oversold conditions while using smoothed signal lines to filter market noise and pinpoint potential reversal zones.

Usage

The indicator consists of two primary components displayed on a single oscillator pane. The first is a centered RSI, plotted as a histogram, which changes color based on its position relative to user-defined overbought and oversold levels. This provides an immediate visual cue for momentum strength. A moving average (SMA or EMA) can be applied to this RSI to act as a dynamic signal line.

The second component is the Godmode (Wavetrend) oscillator, which consists of two lines: WT1 and WT2. Crossovers between these lines can signal potential shifts in trend direction. Additionally, the indicator features "Caution" signals (plotted as circles) that appear when the Wavetrend reaches extreme levels, indicating heightened reversal probability. These zones are useful for identifying market exhaustion.

Details

This implementation is based on the Godmode concepts popularized by developers like LazyBear and others, integrating multiple technical calculations including:

• TCI (Trend Confidence Index): Derived from EMAs of price and price deviations.
• MFI (Money Flow Index): A volume-weighted momentum calculation.
• Willy: A modified Williams %R variation.
• CSI (Composite Strength Index): An average of RSI and TSI.

The "Multi-exchange" setting allows users to aggregate data from several major exchanges (Bitfinex, BitMEX, Bitstamp, Coinbase) to calculate a more robust Godmode value, which can be particularly useful for Bitcoin traders looking for a market-wide consensus on momentum.

Settings

RSI Settings

• RSI Length: Determines the period used for the RSI calculation.
• RSI Overbought Highlight Level: Sets the threshold for the upper color change in the RSI histogram.
• RSI Oversold Highlight Level: Sets the threshold for the lower color change in the RSI histogram.
• Show RSI MA?: Toggles the visibility of the RSI's moving average.
• Use Exponential RSI MA?: Switches between a Simple Moving Average (SMA) and an Exponential Moving Average (EMA) for the RSI signal line.
• RSI MA Length: Sets the period for the RSI signal line.

Levels

• Overbought/Oversold Level 1 & 2: Defines the horizontal reference lines for identifying extreme market conditions.

Godmode Settings

• Channel Length: Sets the primary period for the Wavetrend channel calculation.
• Average Length: Determines the smoothing period for the TCI and Willy components.
• Short Length: The period used for RSI, TSI, and Money Flow calculations within the Godmode formula.
• WT 2 Length: Controls the smoothing of the secondary Wavetrend signal line.
• Multi-exchange?: Enables the aggregation of price data from multiple BTC exchanges for the Wavetrend calculation.

FAQ

How do I interpret the "Caution" circles?

The circles appear when the WT2 line enters extreme zones. Increasing circle sizes (levels 1 through 3) indicate deeper overbought or oversold conditions, suggesting a higher likelihood of a trend pause or reversal.

What is the difference between WT1 and WT2?

WT1 is the fast-moving oscillator line, while WT2 is a smoothed version (SMA) of WT1. Their crossovers are often used as entry or exit triggers in momentum-based strategies.

How can I access the Godmode RSI?

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