RSI Momentum Acceleration

The RSI Momentum Acceleration indicator tool plots momentum acceleration oscillators derived from price and the Relative Strength Index (RSI) to highlight early trend reversals and momentum shifts.

Usage

The indicator is primarily used to identify market conditions where momentum is either accelerating or decelerating relative to price. It features two oscillators: one based on price (Source 1) and one based on RSI or a custom source (Source 2).

• Bullish Bias: When the RSI momentum accelerates faster than price momentum (indicated by a green background), the market is considered bullish. This often signals an early bullish reversal or strong trend continuation.
• Bearish Bias: When the RSI momentum decelerates faster than price momentum (indicated by a red/yellow background), the market is considered bearish. This typically suggests momentum is fading despite price action.

The indicator is designed to detect subtle shifts in market "excitement" that traditional momentum indicators might miss.

Details

This tool utilizes a core routine for calculating Momentum Acceleration, which involves measuring the rate of change of velocity (acceleration) within a specified lookback period. By comparing the acceleration of price against the acceleration of the RSI, traders can visualize divergences in momentum strength.

The script includes a feature-scaling function that allows both oscillators to be rescaled to a normalized range (default 0-100). This ensures that price momentum and RSI momentum can be compared on the same scale, making crossovers and relationship changes easier to identify.

Settings

Momentum parameters

• Momentum length: Sets the lookback period used for the momentum and acceleration calculations.
• Rescale: Enables feature scaling so both plots overlap on the same scale.
• Min / Max: Defines the normalization range when rescaling is enabled.

Source 1

• Source 1: Determines the price source for the first momentum oscillator (e.g., Close, Open, HL2).

Source 2

• Source: Choose between "RSI" or "Custom" as the basis for the second oscillator.
• RSI Source: The price source used specifically for the RSI calculation.
• RSI Length: The lookback period for the RSI.
• Source 2 Custom: If "Custom" is selected in the Source dropdown, this allows users to input the output of another indicator as the source for momentum calculation.

FAQ

How do I use the "Custom" source?

In the settings under "Source 2", set the Source dropdown to "Custom". Then, use the "Source 2 Custom" input to select the plot or output from another indicator loaded on your chart.

What do the background colors represent?

Green backgrounds represent periods where the second source (RSI) momentum is greater than the price momentum. Red/Yellow backgrounds indicate that price momentum is currently stronger than the second source's momentum.

How can I access RSI Momentum Acceleration?

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