Super RSI

The Super RSI indicator is a comprehensive signal engine that enhances the traditional Relative Strength Index with automated divergence detection, multi-timeframe confluence, and a unique liquidity trap filter. It provides traders with a scoring system for signal strength, allowing for a more nuanced interpretation of overbought and oversold conditions.

Usage

The indicator provides visual signals on the chart to identify potential reversal points. These are categorized into several types:

• Primary Signals: Represented by triangles (▲ for Buy, ▼ for Sell). The size of these triangles is dynamic, reflecting a signal score from 1 to 6. A larger triangle indicates a higher confidence setup based on multiple internal confluence factors.
• Divergences: The tool automatically identifies and labels both classic and hidden divergences. Classic bullish/bearish divergences are marked with diamonds (◆), while hidden divergences are marked with circles (●).
• Trap Zones: When the indicator detects a "liquidity trap"—characterized by a high frequency of signals during low price movement—it highlights the area with a shaded background. During these zones, new signals are suppressed to prevent entering during consolidation.
• HUD Panel: A real-time dashboard displays the current signal score, RSI values across different timeframes, and the overall multi-timeframe bias, providing a quick summary of market conditions.

Details

The script operates on a multi-layered scoring logic. A signal's score (0-6) is determined by:

1. RSI crossing adaptive or fixed thresholds.
2. The direction of the RSI slope.
3. Presence of valid divergences.
4. Exclusion from trap zones.
5. Alignment with Higher Timeframe (HTF) and Very Higher Timeframe (VHTF) RSI values.

The Adaptive RSI Thresholds feature uses standard deviation to adjust overbought and oversold levels based on current volatility, making the indicator more responsive to different market environments compared to static 70/30 levels.

Settings

General Settings

• RSI Length: Sets the period for the RSI calculation.
• Higher Timeframe: Determines the timeframe used for the primary HTF confluence filter.
• Adaptive RSI Thresholds: Toggles between standard 70/30 levels and volatility-adjusted levels.
• Show Buy/Sell Arrows: Toggles the visibility of the primary triangle signals.

Divergence Settings

• Enable Divergence Detection: Toggles the detection of classic divergences.
• Divergence Lookback Bars: Sets the window for identifying price and RSI peaks/troughs.
• Enable Hidden Divergence: Toggles the detection of hidden trend-continuation divergences.

Trap Filter

• Enable Trap Detection: Toggles the logic that identifies low-volatility signal clusters.
• Signal Count Threshold: The number of signals required within the lookback period to trigger a trap state.
• Min Move (%) to Avoid Trap: The minimum percentage price move required to validate signals and avoid a trap classification.
• Bars to Suppress Signals After Trap: The duration of the cooldown period after a trap is detected.

MTF Confluence & HUD

• Enable MTF Confluence Filter: Requires HTF and VHTF RSI alignment for a signal to be valid.
• Show HUD: Toggles the on-screen dashboard.
• HUD Position: Adjusts the corner or side where the dashboard is anchored.

FAQ

How do I interpret the signal score? The signal score ranges from 0 to 6. Scores of 5 or 6 indicate high-confluence setups where multiple timeframes and filters align, while scores of 1 or 2 suggest weaker momentum and higher risk.

What does the background shading mean? The shaded background indicates a "Trap Zone." This occurs when many signals are firing but the price is not moving significantly, suggesting a range-bound market where signals are less reliable.

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