+ True RSI

The + True RSI indicator is a comprehensive momentum tool that enhances the standard Relative Strength Index with advanced smoothing options, signal lines, and volatility bands to identify trend bias and reversal points. It provides a highly customizable framework for analyzing overbought and oversold conditions through various filtering techniques.

Usage

The indicator can be used to identify trend momentum and potential exhaustion. By default, the RSI is colored based on its position relative to thresholds (30/70) or a median line. Users can enable candle coloring to synchronize chart visuals with the RSI bias.

Key usage examples include:

• Trend Bias: Use the "Signal Line" or "Smoothed RSI" to determine the overall market direction.
• Volatility Context: Enable Bollinger Bands or Donchian Channels applied directly to the RSI to see when momentum is reaching historical extremes.
• Divergences: The script includes automated divergence detection (Bullish, Bearish, Hidden) to spot potential trend reversals.
• Multiple Timeframes: Users can reference higher timeframe RSI data for color-coding the current chart's bars and indicator line.

Details

The "+ True RSI" utilizes a normalized gain/loss calculation (dividing change by the average of current and previous price) before applying the RMA smoothing, providing a slightly refined response compared to the classic formula. It incorporates an extensive library of 21 moving average types for smoothing and signal generation, including advanced filters like Jurik (JMA), Laguerre, and Fractal Adaptive (FRAMA). The inclusion of volatility bands directly on the oscillator allows for a dynamic overbought/oversold assessment that adjusts to market volatility.

Settings

Primary RSI

• Bar Color: Toggles candle coloring based on RSI status.
• Indicator Smoothing: When enabled, replaces the standard RSI line with a smoothed version.
• Period: Defines the lookback period for the RSI calculation.
• Color Reference: Determines the logic for coloring (Range, Signal Line, Donchian Basis, or Channel Range).
• Timeframe Reference: Allows selecting a different timeframe for color logic.
• Upper/Lower Threshold: Sets the levels for overbought and oversold coloring.

Smoothed RSI & Signal Line

• Type: Selection of 21 different moving average types (SMA, EMA, JMA, HMA, etc.).
• Period: The lookback for the smoothing or signal line.
• Specific Inputs: Specialized parameters for advanced MAs like ALMA (Offset/Sigma), Jurik (Phase/Power), or KAMA (Fast/Slow End).

Bollinger Bands & Donchian Channel

• Type: Choose between BB or Donchian Channels.
• Multiplier: Sets the standard deviation for Bollinger Bands.
• Band Thickness: Adjusts the visual width of the bands.

Divergences

• Pivot Period: Lookback for identifying pivot highs and lows.
• Range: Min/Max candle range to search for divergences.

FAQ

How do I use the different color references?

The "Color Reference" setting changes how the RSI line and bars are colored. "Range" uses the 70/30 thresholds, "Signal Line" uses the crossover with the moving average, and "Channel Range" uses the Donchian or Bollinger Band extremes.

What is the benefit of the "Indicator Smoothing" option?

This turns off the raw RSI line and uses a smoothed version as the primary data point. This helps reduce "noise" and false signals in volatile markets by focusing on the underlying momentum trend.

How do I access + True RSI?

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