This is still an experimental script under development.
The script takes the Percentage change/ratio of shorter time frame EMA (for eg: 21) over the 200 period EMA and plots the widening. This can be used as an indication of bullish or bearish momentum in a certain direction. Plotting an RSI on this indicator results in a much more correlated and smoother RSI to price which can be used to trade as follows.
When price is above 200EMA, longs when RSI on the EMA width ratio is in oversold zone is profitable. Buy at over sold and close at over bought. When price is below 200EMA, shorts when RSI on the EMA width ratio is in overbought zone is profitable. Sell at over bought and close at over sold.
In the next versions I plan on implementing further improvements like: 1. Color coding direction of market 2. Combining RSI on EMA into a single indicator. 3. Converting indicator to a strategy.