Supertrended RSI

The Supertrended RSI indicator applies the dynamic Supertrend methodology directly to the Relative Strength Index (RSI) to provide a unique perspective on momentum and trend reversals.

Usage

The tool is primarily used to identify trend shifts within the momentum oscillator itself rather than on the price chart. Users can observe the interaction between the RSI line and the Supertrend line:

• Trend Confirmation: When the RSI is above the Supertrend line, it indicates a bullish momentum phase, often visualized with a green fill. Conversely, when the RSI is below the Supertrend line, it signifies bearish momentum, shown with a red fill.
• Reversal Signals: Look for crossovers in extreme zones. A bullish reversal occurs when the RSI crosses above the Supertrend line while in the oversold region (below 30). A bearish reversal occurs when the RSI crosses below the Supertrend line while in the overbought region (above 70).
• Smoothing: If the RSI appears too volatile, the "Smooth RSI" setting can be enabled to apply a Hull Moving Average (HMA) to the RSI values, providing a cleaner trend signal.

Details

The indicator functions by calculating a standard RSI and then using that RSI value as the "source" for a Supertrend calculation. The Supertrend logic utilizes a modified Average True Range (ATR) calculation based on the RSI's fluctuations rather than price action. This creates a trailing stop-loss style boundary around the momentum oscillator. Additionally, the script includes an optional moving average (SMA, HMA, EMA, etc.) that can be plotted alongside the RSI for further trend filtering.

Settings

RSI Settings

• RSI Length: The period used for the Relative Strength Index calculation.
• RSI Smoothing Length: The period for the smoothing HMA if smoothing is enabled.
• RSI Source: The price data (e.g., Close, Open, HL2) used to calculate the RSI.
• Smooth RSI?: Toggle to apply smoothing to the RSI line.

MA Settings

• MA Length: The period for the optional RSI Moving Average.
• MA Type: Choose between SMA, HMA, EMA, SMMA, WMA, or VWMA for the RSI moving average.
• Show RSI MA?: Toggles the visibility of the RSI Moving Average.

Super Trend Settings

• Factor: The multiplier that determines the distance of the Supertrend bands from the RSI.
• ATR Length: The period used for the ATR calculation within the Supertrend logic.

FAQ

How do I access the Supertrended RSI?

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

Can this indicator be used on any timeframe?

Yes, the indicator is designed to work on all timeframes, though users may need to adjust the Factor and ATR Length settings to account for different volatility levels on lower versus higher timeframes.

What do the triangles on the oscillator represent?

The triangles represent potential reversal points. A green triangle appearing in the oversold zone indicates a bullish reversal, while a red triangle in the overbought zone indicates a bearish reversal.