# RSI BAMM RSI BAMM is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Runs the staged RSI BAMM sequence on a 14-period RSI: an initial push beyond the 70/30 extremes, a pullback that must hold the 50 level, then a second price extreme on weaker momentum that freezes a 0.886-1.13 completion zone on price. Reversal markers print when RSI rolls over inside the zone, with eight alerts running from trigger to exit management. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 4, 2026. - Access: free. - Concepts: [RSI BAMM](https://www.luxalgo.com/library/concept/rsi-bamm/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=xfplmuc3inkfa6pkap4u1q1a - Page: https://www.luxalgo.com/library/indicator/rsi-bamm/ **RSI BAMM** tracks the [RSI BAMM](https://www.luxalgo.com/library/concept/rsi-bamm/) momentum-harmonic sequence as a staged state machine. Both sides are hunted independently, a bearish M at highs and a bullish W at lows, on a gradient-filled RSI pane. When price stretches to a second extreme but the RSI cannot better its first reading, the completion zone (the first-test-to-pullback leg's 0.886 retracement out to its 1.13 extension) freezes as a box on the price chart, projected as dotted levels beforehand. A dashboard tracks each side's stage and zone. ## How to Trade the RSI BAMM? - **Second Test**: a fresh price extreme on softer RSI. The final leg toward the completion zone may be underway. - **Reversal Signal**: price in the zone plus a confirmed RSI rollover prints the M or W label, divergence line and price triangle, the entry timing the methodology waits for. - **Exit Management**: after a signal, an RSI recross of the Intermediate Level is the momentum cue to tighten or exit. - **Invalidation**: a close beyond the outer 1.13 measurement voids the setup. ## RSI BAMM Settings - **RSI Length** (default 14) and **Source** (default close). - **Overbought Level** (default 70) / **Oversold Level** (default 30): the extremes opening bearish and bullish sequences. - **Intermediate Level** (default 50): a pullback crossing it voids the forming structure; after a signal it becomes the exit threshold. - **Rollover Confirmation** (default 2): bars each side an RSI swing needs to confirm the failed second test. - **Structure Timeout** (default 500): bars before a stale sequence is abandoned. - **Retracement Ratio** (default 0.886) and **Extension Ratio** (default 1.13): the zone's boundaries. - Display: **Completion Zone**, **Projected Levels While Forming**, **RSI Structure Lines**, **Price Divergence Line**, **Pattern Labels**, **Reversal Markers**, **Show Dashboard** (all on). ## Frequently Asked Questions ### Is this just RSI divergence with extra steps? The failed second test carries the setup here too, but a plain [Relative Strength Index](https://www.luxalgo.com/library/indicator/relative-strength-index/) read stops at the observation. This build demands the full staging and answers what divergence cannot: where the final leg likely ends. ### Do the signals repaint? The state machine advances on confirmed bars only, and RSI swings confirm Rollover Confirmation bars after their turn. Projected levels update as a pullback develops; once the second test triggers, the zone freezes and signals stand. ### What do the eight alerts cover? Bullish and bearish pairs of four events: Second Test on the trigger, Reversal Signal on the rollover in the zone, Exit Management on the intermediate recross, Setup Invalidated beyond the outer measurement. --- Bat®, Crab®, Shark®, AB=CD® and 5-0® are registered trademarks of their owner, used here only to identify the patterns. LuxAlgo's tools are independent implementations and are not affiliated with or endorsed by the trademark owner. ## Related indicators - [Cypher](https://www.luxalgo.com/library/indicator/cypher/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/cypher.md - [Harmonic Pattern Detection](https://www.luxalgo.com/library/indicator/harmonic-pattern-detection/) (Harmonic Patterns): markdown at https://www.luxalgo.com/library/indicator/harmonic-pattern-detection.md - [Half-Retracement Reversal Detector](https://www.luxalgo.com/library/indicator/5-0/) (5-0): markdown at https://www.luxalgo.com/library/indicator/5-0.md - [Measured Move Detector](https://www.luxalgo.com/library/indicator/abcd/) (ABCD): markdown at https://www.luxalgo.com/library/indicator/abcd.md - [Three Drive Pattern Detector](https://www.luxalgo.com/library/indicator/three-drive-pattern-detector/) (Three Drives): markdown at https://www.luxalgo.com/library/indicator/three-drive-pattern-detector.md - [Potential Reversal Zone](https://www.luxalgo.com/library/indicator/potential-reversal-zone/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/potential-reversal-zone.md - [Anti-patterns](https://www.luxalgo.com/library/indicator/anti-patterns/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/anti-patterns.md - [Overextension Reversal Detector](https://www.luxalgo.com/library/indicator/shark/) (Shark): markdown at https://www.luxalgo.com/library/indicator/shark.md --- Source: https://www.luxalgo.com/library/indicator/rsi-bamm/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/