Pulse RSI

The Pulse RSI indicator is a momentum oscillator that aims to provide more robust and responsive trend identification by integrating volume-weighted price data and linear regression smoothing into the standard RSI calculation.

Usage

The Pulse RSI can be used to identify trend shifts, overbought/oversold conditions, and custom momentum thresholds. Users can toggle between four distinct signal types to suit their strategy:

• Trend (Type 1): Triggers when the indicator value crosses its previous value. This is useful for identifying immediate short-term momentum shifts.
• Midline Trend (Type 2): Based on the classic 50-level crossover. Values above 50 indicate a bullish bias, while values below 50 indicate a bearish bias.
• Overbought/Oversold (Type 3): Identifies potential reversal zones when the oscillator crosses key levels (defaulting to 30 and 70).
• Custom Thresholds (Type 4): Allows users to define specific levels for signals. For example, setting a low threshold for an early long entry or a high threshold for a specific short entry.

Details

Unlike a standard RSI which only uses price, the Pulse RSI calculates a volume-weighted price (Close * High * Low * Volume). This data is smoothed using linear regression to create a more stable and less "noisy" oscillator. The result is then normalized to a 0-100 scale. The indicator also features a visual "Glow Effect" on the plot and can optionally color price candles based on the selected trend logic.

Settings

Indicator Settings

• Length: Determines the period used for smoothing and the RSI calculation. Higher values result in smoother, long-term trend data, while lower values increase sensitivity.
• Threshold Long: Sets the custom level for Type 4 bullish signals.
• Threshold Short: Sets the custom level for Type 4 bearish signals.

Signal Settings

• Trend - Type 1: Enables signals based on the indicator crossing its previous value.
• Trend - Type 2: Enables signals based on the 50-midline crossover.
• Oversold / Overbought: Enables signals based on the 30/70 extreme levels.
• Custom Threshold L/S: Enables signals based on the user-defined thresholds.

Color Settings

• Custom Color Palette: Selection of predefined color schemes (Classic, Mystic, Accented, Royal).
• Use Custom Palette: Enables the manual selection of bullish and bearish colors.

FAQ

How do I use the different signal types?

You can enable or disable the four signal types in the settings menu to match your trading style, whether you prefer early momentum shifts (Type 1) or confirmed trend direction (Type 2).

What makes this different from a standard RSI?

The inclusion of volume-weighting and linear regression smoothing helps the Pulse RSI filter out market noise and respond more accurately to significant price-volume movements.

How can I access Pulse RSI?

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