These types of movements are due to the market still trending and traditional RSI can not tell traders this. Trending RSI fixes this by introducing trend information back into the oscillator. By reverse engineering RSI we have been able to make a new indicator that is no longer bound between 0 and 100. Instead it provides the traditional 70 and 30 zones as bands, and 50 as a center line that still represent these zones perfectly. This transforms RSI into a centered oscillator instead of a normalized oscillator. When the market is trending our indicator represents this as the center line being below or above 0. Just like MACD the center line is colored to represent the market phases. This helps in identifying reversals more clearly by adding a layer of confluence to the already renowned RSI. We have also included a novel filtering technique that has a low lag to smoothing ratio. This is primarily used to smooth the bands by default but you can also utilize this on the RSI. Several alerts have been included to provide users with easy to configure signals.
You can use the center line as a directional filter for your trades by only picking trades in the direction of the center line. When the center line is above 0, the market is trending up. Conversely, when the center line is below 0 the market is trending down trend. Use the polarity of the center line to estimate the strength of retracements from the oversold and overbought zones. We have also included a special moving average to help you find the momentum of a move. The Binomial MA filter approximates a normal curve making it similar to a gaussian filter. We have also included standard divergences which are fully configurable in the settings. Finally, we have built this indicator to be compatible with the built in multi time frame option to allow users to freely pick the time frame they wish to use. It is worth noting that due to the limitations of the standard MTF implementation divergences will not plot as expected when using time frames outside of the charts time frame. This is standard and also affects the built in RSI.
All of the colors are fully adjustable with the option to enable or disable the glow effect. We have also designed this indicator to only display the information for plots that are enabled to reduce clutter and provide a cleaner charting experience. All alerts are built to work with the standard alert builder and do not have to be enabled or disabled inside of the indicator.
Included Alerts:
// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © ChartPrime
//@version=5
indicator("Trending RSI [ChartPrime]", max_bars_back = 5000, timeframe = "", timeframe_gaps = true)
// Declarations {
type divergence_data
bool pivot_found = false
bool divergence_found = false
bool polarity = na
float level = na
color colour = #00000000
method pivot_found(divergence_data self, bool direction, bool enable)=>
bool flag = false
if enable
if direction
flag := self.pivot_found and self.polarity
else
flag := self.pivot_found and not self.polarity
else
flag
method divergence_found(divergence_data self, bool direction, bool enable = true)=>
bool flag = false
if enable
if direction
flag := self.divergence_found and self.polarity
else
flag := self.divergence_found and not self.polarity
else
flag
in_range(bool condition, int lower_range, int upper_range) =>
int bars = ta.barssince(condition)
lower_range <= bars and bars <= upper_range
find_divergence(float source, int left, int right, int lower_range, int upper_range, color bullish_color, color bearish_color)=>
float source_offset = source[right]
int offset = -right
bool pl = not na(ta.pivotlow(source, left, right))
bool ph = not na(ta.pivothigh(source, left, right))
bool source_hl = source_offset > ta.valuewhen(pl, source_offset, 1) and in_range(pl[1], lower_range, upper_range)
bool price_ll = low[right] < ta.valuewhen(pl, low[right], 1)
bool bullish_condition = price_ll and source_hl and pl
bool source_lh = source_offset < ta.valuewhen(ph, source_offset, 1) and in_range(ph[1], lower_range, upper_range)
bool price_hh = high[right] > ta.valuewhen(ph, high[right], 1)
bool bearish_condition = price_hh and source_lh and ph
divergence_data ret = divergence_data.new()
if bullish_condition
ret := divergence_data.new(true, true, true, source_offset, bullish_color)
else if pl
ret := divergence_data.new(true, false, true, source_offset, bullish_color)
if bearish_condition
ret := divergence_data.new(true, true, false, source_offset, bearish_color)
else if ph
ret := divergence_data.new(true, false, false, source_offset, bearish_color)
ret
convolve(float[] weights, float[] kernel, int iterations)=>
var float[] convolution = weights.copy()
if iterations > 0
if barstate.isfirst
for iteration = 0 to iterations - 1
float[] temp = array.new()
for i = 0 to convolution.size() + kernel.size() - 2
float sum = 0.0
for j = 0 to kernel.size() - 1
int index = i - j
if index >= 0 and index < convolution.size()
sum += convolution.get(index) * kernel.get(j)
else
continue
temp.push(sum)
convolution := temp.copy()
convolution
method truncate_weights(float[] weights, bool enable = true)=>
if enable
int max_idx = weights.indexof(weights.max())
if max_idx > 0
for i = 0 to weights.indexof(weights.max()) - 1
weights.shift()
else
weights
weights
binomia_ma(float source, int length, bool enable)=>
float pre_filter = ta.sma(source, 2)
float[] h = array.from(0.5, 0.5)
float[] weights = convolve(h, h, length * 10 - 1).truncate_weights()
if enable and not na(source)
float sum = 0
float weight = 0
for i = 0 to math.min(weights.size() - 1, bar_index)
float w = weights.get(i)
weight += w
sum += nz(pre_filter[i], nz(source[i])) * w
sum/weight
else
float(na)
precalculate_phi_coefficients(simple int length, simple float phase)=>
var float[] coefficients = array.new(length)
var float E = 0.0
const float SQRT_PIx2 = math.sqrt(2.0 * math.pi)
const float MULTIPLIER = -0.5 / 0.93
var int length_1 = length - 1
var float length_2 = length * 0.52353
if barstate.isfirst
for int i=0 to length_1
float alpha = (i + phase - length_2) * MULTIPLIER
float beta = 1.0 / (0.2316419 * math.abs(alpha) + 1.0)
float phi = (math.exp(math.pow(alpha, 2) * -0.5)
*-0.398942280) * beta *
( 0.319381530 + beta *
(-0.356563782 + beta *
( 1.781477937 + beta *
(-1.821255978 + beta
* 1.330274429)))) + 1.011
if alpha < 0.0
phi := 1.0 - phi
float weight = phi / SQRT_PIx2
E += weight
coefficients.set(i, weight)
[coefficients, E]
phi_smoother(series float source, series float[] coefficients, series float E, simple float hf_ratio = 0.5)=>
float sma2 = source * math.min(math.max(0.5, hf_ratio), 1) + nz(source[1], source) * math.max(math.min(0.5, 1 - hf_ratio), 0)
int length = coefficients.size()
if length > 1
float W = 0.0
for int i=0 to length - 1
float weight = coefficients.get(i)
W += weight * sma2[i]
W / E
else
source
rma(float source = close, float length = 9)=>
float alpha = 1 / length
var float smoothed = na
smoothed := alpha * source + (1 - alpha) * nz(smoothed[1])
rsi(float source, int length)=>
float up = math.max(source - source[1], 0)
float down = math.max(source[1] - source, 0)
float rs = rma(up, length) / rma(down, length)
float rsi = 100 - 100 / (1 + rs)
rsi
reverse_rsi(series float source, simple int length, float value)=>
float src = (source - ta.rma(source, length)) / (length / 2)
float alpha = 1 / length
float average_up_count = 0.0
float average_down_count = 0.0
average_up_count := src > src[1]
? alpha * (src - src[1]) + (1 - alpha) * nz(average_up_count[1], 1)
: (1 - alpha) * nz(average_up_count[1], 1)
average_down_count := src > src[1]
? (1 - alpha) * nz(average_down_count[1], 1)
: alpha * (src[1] - src) + (1 - alpha) * nz(average_down_count[1], 1)
float reversed_value = (length - 1) * (average_down_count * value / (100 - value) - average_up_count)
float reverse_rsi = reversed_value >= 0 ? src + reversed_value : src + reversed_value * (100 - value) / value
// }
// Inputs {
const string group_1 = "Settings"
const string top_value_tip = "Pick what RSI value you want the top range to represent."
const string bottom_value_tip = "Pick what RSI value you want the bottom range to represent"
float source = input.source(close, "Source", group = group_1)
int length = input.int(14, "Length", minval = 1, group = group_1)
float top_value = input.float(70, "Top Range", minval = 50, maxval = 99, tooltip = top_value_tip, group = group_1)
float bottom_value = input.float(30, "Bottom Range", minval = 1, maxval = 50, tooltip = bottom_value_tip, group = group_1)
bool ma_enable = input.bool(false, "MA Length ", inline = "MA", group = group_1)
int ma_length = input.int(30, "", minval = 0, maxval = 100, inline = "MA", group = group_1)
const string group_2 = "Smoothing"
const string smoothing_tip = "Adjusts the period of the filter."
const string speed_tip = "Adjusts the responsiveness of the filter."
const string hf_tip = "Adjusts the pre smoothing of the filter." + "\n" + "1 is no pre smoothing while 0.5 is maximum pre smoothing."
int smoothing = input.int(1, "Signal Smoothing", minval = 1, tooltip = smoothing_tip, group = group_2)
float smoothing_phase = input.float(3.7, "Signal Smoothing Speed", tooltip = speed_tip, group = group_2)
float smoothing_hf = input.float(0.7, "Signal Smoothing Pre Filter", 0.5, 1, step = 0.1, tooltip = hf_tip, group = group_2)
int boundary_smoothing = input.int(40, "Boundary Smoothing", minval = 1, tooltip = smoothing_tip, group = group_2)
float boundary_smoothing_phase = input.float(3.7, "Boundry Smoothing Speed", tooltip = speed_tip, group = group_2)
float boundary_hf = input.float(0.5, "Boundary Smoothing Pre Filter", 0.5, 1, step = 0.1, tooltip = hf_tip, group = group_2)
const string group_3 = "Divergence"
const string left_tip = "Pick the lookback for the divergence."
const string right_tip = "Pick the lookforward for the divergence. This impacts the lag of the divergence. It acts as a confirmation period."
const string lower_range_tip = "Minimum number of candles for a divergence."
const string upper_range_tip = "Maximum number of candles for a divergence."
int left = input.int(15, "Look Left", minval = 1, tooltip = left_tip, group = group_3)
int right = input.int(15, "Look Right", minval = 1, tooltip = right_tip, group = group_3)
int lower_range = input.int(5, "Lower Range", minval = 1, tooltip = lower_range_tip, group = group_3)
int upper_range = input.int(60, "Upper Range", minval = 1, tooltip = upper_range_tip, group = group_3)
string divergence_label = input.string("Line", "Divergence Drawings", ["Line", "Label", "Line and Label"], group = group_3)
bool bullish_divergence = input.bool(false, "Enable Bullish Divergence", group = group_3)
bool bearish_divergence = input.bool(false, "Enable Bearish Divergence", group = group_3)
const string group_4 = "Color"
bool glow = input.bool(true, "Glow", group = group_4)
color rsi_color = input.color(#ffffff, "RSI", group = group_4)
color ma_color = input.color(#FFEE54, "MA Color", group = group_4)
color bg_color = input.color(#7E57C21A, "BG", group = group_4)
color top_color = input.color(#a222e283, "Upper Range", group = group_4)
color bottom_color = input.color(#e5b60c83, "Lower Range", group = group_4)
color center_bullish_up_color = input.color(#21a110, "Center", inline = "Center", group = group_4)
color center_bullish_down_color = input.color(#005e05, "", inline = "Center", group = group_4)
color center_bearish_up_color = input.color(#FCA0A9, "", inline = "Center", group = group_4)
color center_bearish_down_color = input.color(#FB3E38, "", inline = "Center", group = group_4)
color bullish_divergence_color = input.color(#00B374, "Bullish Divergence", group = group_4)
color bearish_divergence_color = input.color(#F03042, "Bearish Divergence", group = group_4)
color divergence_text_color = input.color(#FEFEFE, "Divergence Text", group = group_4)
color zero_line_color = input.color(#9E9E9E, "0 Line Color", group = group_4)
// }
// Calculations {
[smoothing_coefficients, smoothing_E] = precalculate_phi_coefficients(smoothing, smoothing_phase)
[boundary_coefficients, boundary_E] = precalculate_phi_coefficients(boundary_smoothing, boundary_smoothing_phase)
float top = phi_smoother(reverse_rsi(source, length, top_value), boundary_coefficients, boundary_E, boundary_hf)
float bottom = phi_smoother(reverse_rsi(source, length, bottom_value), boundary_coefficients, boundary_E, boundary_hf)
float center = phi_smoother(reverse_rsi(source, length, 50), smoothing_coefficients, smoothing_E, smoothing_hf)
float top_glow = phi_smoother(reverse_rsi(source, length, math.min(top_value + 4, 99)), boundary_coefficients, boundary_E, boundary_hf)
float bottom_glow = phi_smoother(reverse_rsi(source, length, math.max(bottom_value - 4, 1)), boundary_coefficients, boundary_E, boundary_hf)
float rsi = phi_smoother(reverse_rsi(source, length, rsi(source, length)), smoothing_coefficients, smoothing_E, smoothing_hf)
float ma = binomia_ma(rsi, ma_length, ma_enable)
divergence_data divs = find_divergence(rsi, left, right, lower_range, upper_range, bullish_divergence_color, bearish_divergence_color)
bool bullish_pivot_found = divs.pivot_found(true, bullish_divergence)
bool bullish_divergence_found = divs.divergence_found(true, bullish_divergence)
bool bullish_divergence_alert = divs.divergence_found(true)
bool bearish_pivot_found = divs.pivot_found(false, bearish_divergence)
bool bearish_divergence_found = divs.divergence_found(false, bearish_divergence)
bool bearish_divergence_alert = divs.divergence_found(false)
bool draw_line = str.contains(divergence_label, "Line")
bool draw_label = str.contains(divergence_label, "Label")
float center_delta = center - center[1]
// }
// Color Calculations {
color center_color = center >= 0
? (center_delta > 0 ? center_bullish_up_color : center_bullish_down_color)
: (center_delta > 0 ? center_bearish_up_color : center_bearish_down_color)
color top_glow_color_max = color.new(top_color, 80)
color bottom_glow_color_max = color.new(bottom_color, 80)
color top_glow_color_min = color.new(top_color, 100)
color bottom_glow_color_min = color.new(bottom_color, 100)
color zero_line_solid = color.new(zero_line_color, 80)
color zero_line_dashed = color.new(zero_line_color, 50)
// }
// Plotting {
plot(0, "0 Line", zero_line_solid, display = display.pane)
plot(0, "0 Line", zero_line_dashed, 4, plot.style_histogram, display = display.pane)
top_band = plot(top, "Upper Range", top_color)
bottom_band = plot(bottom, "Lower Range", bottom_color)
top_band_glow = plot(glow ? top_glow : na, "Upper Range Glow", top_glow_color_min, editable = false, display = display.none)
bottom_band_glow = plot(glow ? bottom_glow : na, "Lower Range Glow", bottom_glow_color_min, editable = false, display = display.none)
fill(top_band_glow, top_band, top_glow, 0, top_glow_color_min, top_glow_color_max, "Upper Range Glow Fill")
fill(bottom_band, bottom_band_glow, 0, bottom_glow, bottom_glow_color_max, bottom_glow_color_min, "Lower Range Glow Fill")
fill(top_band, bottom_band, bg_color, "RSI Background Fill")
plot(glow ? center : na, "Center", color.new(center_color, 95), 3, editable = false, display = display.pane)
plot(glow ? center : na, "Center", color.new(center_color, 95), 2, editable = false, display = display.pane)
plot(center, "Center", center_color,2)
plot(glow ? ma : na, "MA Glow", color.new(ma_color, 95), 3, editable = false, display = display.pane)
plot(ma, "MA", ma_color, display = ma_enable ? display.all : display.pane)
plot(glow ? rsi : na, "RSI Glow", color.new(rsi_color, 95), 4, editable = false, display = display.pane)
plot(glow ? rsi : na, "RSI Glow", color.new(rsi_color, 95), 3, editable = false, display = display.pane)
plot(glow ? rsi : na, "RSI Glow", color.new(rsi_color, 95), 2, editable = false, display = display.pane)
plot(rsi, "RSI", rsi_color)
plot(bullish_pivot_found and draw_line ? divs.level : na, "Bullish Divergence", bullish_divergence_found ? divs.colour : #00000000, 2, offset = -right, display = bullish_divergence ? display.all : display.pane)
plotshape(bullish_divergence_found and draw_label ? divs.level : na, "Bullish Divergence Label", shape.labelup, location.absolute, bullish_divergence_found ? divs.colour : na, -right, "Bullish", divergence_text_color, display = bullish_divergence ? display.all : display.pane)
plot(bearish_pivot_found and draw_line ? divs.level : na, "Bearish Divergence", bearish_divergence_found ? divs.colour : #00000000, 2, offset = -right, display = bearish_divergence ? display.all : display.pane)
plotshape(bearish_divergence_found and draw_label ? divs.level : na, "Bearish Divergence Label", shape.labeldown, location.absolute, bearish_divergence_found ? divs.colour : na, -right, "Bearish", divergence_text_color, display = bearish_divergence ? display.all : display.pane)
// }
// Alerts {
alertcondition(ta.crossover(rsi, center), "RSI Cross Over Center")
alertcondition(ta.crossunder(rsi, center), "RSI Cross Under Center")
alertcondition(ta.crossunder(rsi, top), "RSI Cross Under Upper Range")
alertcondition(ta.crossover(rsi, top), "RSI Cross Over Upper Range")
alertcondition(ta.crossover(rsi, bottom), "RSI Cross Over Lower Range")
alertcondition(ta.crossunder(rsi, bottom), "RSI Cross Under Lower Range")
alertcondition(ta.crossover(rsi, ma), "RSI Cross Over MA")
alertcondition(ta.crossunder(rsi, ma), "RSI Cross Under MA")
alertcondition(ta.crossover(rsi, 0), "RSI Cross Over 0")
alertcondition(ta.crossunder(rsi, 0), "RSI Cross Under 0")
alertcondition(ta.crossover(center, 0), "Center Cross Over 0")
alertcondition(ta.crossunder(center, 0), "Center Cross Under 0")
alertcondition(ta.crossover(center_delta, 0), "Center Bullish")
alertcondition(ta.crossunder(center_delta, 0), "Center Bearish")
alertcondition(bullish_divergence_alert, "Bullish Divergence")
alertcondition(bearish_divergence_alert, "Bearish Divergence")
// }
