Ultimate RSI - Divergence + S/R + Reverse RSI

The Ultimate RSI indicator is a comprehensive momentum tool that enhances the standard Relative Strength Index with automated divergence detection, dynamic support and resistance levels, and predictive price modeling. This tool helps traders identify potential reversals and key rejection zones by combining traditional RSI analysis with advanced technical overlays.

Usage

The indicator can be used to spot trend exhaustion and potential entry points through several distinct features:

• Divergences: Automatically identifies Regular and Hidden bullish/bearish divergences between price and RSI momentum. Users can choose to display these as labels or connected lines.
• Support & Resistance: Plots horizontal zones based on historical RSI pivot points, helping to identify overextended levels where price has historically reacted.
• Price Prediction Panel: Utilizes a reverse RSI calculation to estimate what the price would need to be to reach specific RSI targets (e.g., 70, 50, 30). This is particularly useful for setting take-profit or stop-loss orders based on momentum thresholds.
• Trend Confirmation: The integrated Moving Average changes color based on the trend direction, providing a secondary filter for RSI signals.

Details

The script offers two calculation methods: "Wilder" (the standard smoothed approach) and "Cutler" (based on simple moving averages). The "Price Prediction" feature uses an algebraic reversal of the RSI formula, allowing traders to see the exact price level required to hit overbought or oversold conditions on the current bar. The divergence engine allows for customization of the lookback period and threshold sensitivities to filter out market noise.

Settings

RSI Settings

• Type: Choose between Wilder or Cutler RSI calculation methods.
• Length: The lookback period for the RSI calculation (default is 14).
• Source: The price data used for calculation (Close, Open, High, Low).
• Color Interpolation: Enables smooth color transitions based on RSI intensity.

RSI Moving Average

• Show moving average: Toggles the visibility of the RSI's internal MA.
• Length/Type: Sets the period and smoothing method (EMA, SMA, etc.) for the signal line.

RSI Divergences

• Divergence Source: Choose to detect divergences based on RSI peaks or Price peaks.
• Pivot Settings: Adjust left and right bars to define the strength of high/low pivots.
• Thresholds: Fine-tune the sensitivity for price and RSI changes to validate a divergence.

Support/Resistance Lines

• Lookback/Touch Points: Define how many historical points are required to form a support or resistance line.

FAQ

• How do I interpret the Price Prediction panel? The panel shows the specific price targets required for the RSI to reach the three user-defined levels (e.g., 70, 50, 30).
• Can I use this for intraday scalping? Yes, by adjusting the Pivot Bars and RSI Length, the indicator can be tuned for lower timeframes to find quick momentum shifts.
• How do I get access to Ultimate RSI? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.