RSI MA Cross

The RSI MA Cross indicator provides enhanced visualization and signal generation by incorporating moving average crossovers directly onto the Relative Strength Index (RSI). It aims to help traders identify bullish and bearish trend shifts through smoothed RSI filtering and customizable signal triggers.

Usage

The indicator can be used to identify trend momentum by observing the interaction between the RSI line and its moving average. A bullish signal is generated when the RSI crosses above the moving average, while a bearish signal occurs when it crosses below.

Examples of usage include:

• Trend Confirmation: Use the background trend coloring to identify the prevailing momentum (e.g., green for bullish, red for bearish).
• Reversal Trading: Filter for crossovers that occur specifically in overbought or oversold regions to identify potential high-probability reversals.
• Smoothing Noise: Enable the "Use smoothed RSI" option to filter out market noise and focus on broader momentum shifts.

Details

The script builds upon the classic RSI formula by introducing a secondary moving average (MA) calculated based on the RSI values. Users can choose from several MA types (SMA, EMA, WMA, etc.) to suit different trading styles. Additionally, the script includes a smoothing mechanism for the RSI itself, which applies a simple moving average to the raw RSI line before calculating crossovers.

Settings

RSI Settings

• RSI Length: Sets the lookback period for the standard RSI calculation.
• Source: Determines the price data used for the RSI calculation (e.g., Close, Open, HL2).
• Use smoothed RSI instead: When enabled, the signals and main RSI line will use a smoothed version of the RSI.
• Smooth period: The length of the smoothing average applied to the RSI.
• Upper Band (Overbought level): Defines the overbought threshold (default 70).
• Lower Band (Oversold level): Defines the oversold threshold (default 30).

MA Settings

• MA Type: Choose between SMA, Bollinger Bands, EMA, SMMA (RMA), WMA, or VWMA for the RSI-based moving average.
• MA Length: Sets the lookback period for the moving average.
• Show RSI cross overs: Toggles the visibility of the triangle signal shapes on the chart.

Extra Settings

• Show Trend color: Enables or disables the background color fill between the RSI and the MA.
• Shows crossover signals only in OB / OS region: When enabled, crossover signals will only appear if the MA is above the overbought level or below the oversold level.

FAQ

How do I use the RSI MA Cross?

You can use it to identify trend changes by looking for crossovers between the RSI line and its moving average, often used to confirm momentum in overbought or oversold conditions.

Can I set alerts for the crossovers?

Yes, the script includes built-in alert conditions for bullish/bearish crossovers as well as entries and exits from overbought/oversold zones.

How can I access this tool?

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