This script is an improved version of the RSI indicator, using a moving average on the RSI itself, as well as two other moving averages used to determine the current trend. A small screener indicating the current movement is displayed in the bottom-left zone of the chart: trend (Bullish/Bearish/Uncertain) and status (Impulse or Correction)
Trends are simply based on moving averages crossovers, coupled to the fact that the current candle closes above the fast MA in a bull trend, and under the fast MA in a bear trend. In other cases, the trend and the movement are considered as "Uncertain" by the indicator.
Options
Various types of moving averages for the RSI and trend MA
Show/Hide crossovers between the RSI and its MA
Color the RSI normal zone with the current trend/movement colors
Show/Hide the screener indicating the current movement
Defaults Parameters
Fast MA 20
Slow MA 50
MA source: Close
RSI Length 14
RSI MA: SMMA (RMA)
RSI MA Length: 20
Don't hesitate to suggest any idea which could improve this indicator.
Release Notes
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Updates
Trend moving average crossovers are now displayed as xcrosses on the indicator (can be disabled)
Overbought and oversold levels can be modified in options
@noop42, Hey, I definitely have to show you something here. The green lines show your entry points in relation to my modified RSI. Now mind you, I do you multi time frame for entry/exits. Anyway, seeing that I am largely a divergence trader, you will notice where the yellow arrows point out the divergence point. On my RSI, my entry would have been just a hair earlier. This isn't my point, though. The point I am making is your indicator is rock fucking solid! Excellent work, man.
noop-noop
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@Echo3Charlie, Haha, I really appreciate. just a question, do you use it with default parameters, or did you modify MA length or types ?
Echo3Charlie
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@noop42, I just used the default parameters. Now, my question for you is, do you find yourself having to change the values in accordance with the time frame you are trading? I primarily use your indicator with my trending time frames: 1H - 1Month. Nevertheless, with your blue entry markers, your indicator is very accurate. I will keep experimenting with the indicator as I really want to understand it's nature. Overall, your work is a keeper for sure.
noop-noop
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@Echo3Charlie, I personally don't use the trend bg colors, I mainly work with divergences and price action. I only thought such a script might be interesting but I don't entierly use it
Echo3Charlie
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@noop42, I just want to comment on your default values. I wouldn't change anything on it. The values and the MA's are perfect. Your indi comes as a great confirmation signal....a very good one at that.