Outback RSI & Hull

The Outback RSI & Hull indicator provides a comprehensive momentum analysis tool that combines a traditional Relative Strength Index (RSI) with both a standard moving average and a Hull Moving Average (HMA) applied directly to the RSI values. This multi-layered approach allows traders to better visualize momentum direction, strength, and potential entry points by observing the confluence between the RSI and its various smoothing components.

Usage

The indicator can be used to identify trend direction and momentum shifts by observing the RSI line in relation to the Moving Average and the Hull Moving Average.

• Trend Confirmation: When the RSI is above both the chosen Moving Average and the Hull Moving Average, it indicates bullish momentum. Conversely, when the RSI is below both, it indicates bearish momentum.
• Entry Signals: The tool highlights background colors based on momentum confluence. If "Display Safe Entries" is enabled, the script differentiates between:
  • Risk Entries: RSI has crossed above/below the MAs but has not yet crossed the RSI Trigger Level.
  • Safe Entries: RSI is trending with the MAs and has cleared the designated RSI Trigger Level (e.g., 50).
• Slope Analysis: The direction and slope of the Hull Moving Average provide a visual representation of short-to-medium-term momentum changes.

Details

The script functions by calculating a standard RSI and then applying two distinct smoothing techniques to the resulting values. The first is a selectable Moving Average (such as SMA or EMA), providing a stable baseline for long-term momentum. The second is a Hull Moving Average, which is known for its reduced lag and responsiveness. By comparing the raw RSI to these two averages, the indicator filters out market noise and provides a clearer picture of whether current price action is supported by underlying strength.

Settings

RSI Settings

• RSI Length: The lookback period for the RSI calculation.
• Source: The price data used as input for the RSI (e.g., Close).
• RSI Trigger Level: The threshold used to differentiate between "Risk" and "Safe" entries.
• Display Safe Entries: Enables background coloring and logic for safe entry zones based on the trigger level.

MA Settings

• MA Type: Select the type of moving average applied to the RSI (SMA, Bollinger Bands, EMA, SMMA, WMA, VWMA).
• MA Length: The lookback period for the primary RSI moving average.
• BB StdDev: The standard deviation multiplier used if Bollinger Bands are selected as the MA type.

Hull Suite

• MA Length: The base period for the Hull Moving Average calculation.
• Length multiplier: A multiplier applied to the Hull length to adjust its responsiveness.

FAQ

How do I interpret the background colors? Green backgrounds signify bullish momentum, while red signifies bearish momentum. Lighter shades typically represent "Risk" entries, while darker shades (if enabled) represent "Safe" entries where the RSI has crossed the trigger level.

Can I use this for alerts? Yes, the script includes built-in alert conditions for both Risk and Safe entries in both directions.

How do I access Outback RSI & Hull? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.