OPEN-SOURCE SCRIPT
Riley's Movement Index
Updated
Brief Description:
Riley's Movement Index is a new indicator developed and named after me.
RMI is quite interesting in that uses two lines to cross each other.
One line represents the bullish side of the market, and the other line represents the bearish side of the market.
A signal occurs when the two lines cross each other.
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Calculation:
Up
1. high > prev high?
2. If yes, then Up = (high - prev high)
3. If no, then Up = 0
Dn
1. low < prev low?
2. If yes, then Dn = (prev low - low)
3. If no, then Dn = 0
SumUp (n) = Sum of Up over n periods
SumDn (n) = Sum of Dn over n periods
Plot SumUp & SumDn lines.
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How to interpret a signal:
When SumUp > SumDn, market is bullish.
When SumUp < SumDn, market is bearish.
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Recommended setting:
I would suggest a setting of 10, the default setting.
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Enjoy, and smash that follow button!
Riley's Movement Index is a new indicator developed and named after me.
RMI is quite interesting in that uses two lines to cross each other.
One line represents the bullish side of the market, and the other line represents the bearish side of the market.
A signal occurs when the two lines cross each other.
-------------------------------------------
Calculation:
Up
1. high > prev high?
2. If yes, then Up = (high - prev high)
3. If no, then Up = 0
Dn
1. low < prev low?
2. If yes, then Dn = (prev low - low)
3. If no, then Dn = 0
SumUp (n) = Sum of Up over n periods
SumDn (n) = Sum of Dn over n periods
Plot SumUp & SumDn lines.
-------------------------------------------
How to interpret a signal:
When SumUp > SumDn, market is bullish.
When SumUp < SumDn, market is bearish.
-------------------------------------------
Recommended setting:
I would suggest a setting of 10, the default setting.
-------------------------------------------
Enjoy, and smash that follow button!
Release Notes
>>>Added a filter feature to filter out false signals (2 new settings):
-Filter Atr length
-Filter Atr multiplier
These two settings control the background color of the indicator.
When the two RMI lines are far enough from each other, the filter feature will allow you to trade.
When this occurs, the background color will become yellow, enabling you to trade.
Calculation of filter:
Dif = Absolute value of (Up line - Dn line)
lvl = multiplier * Atr (length)
Filter = Dif > lvl?
if yes...then there is a background color.
if no...then there is no background color.
***Only trade when there is a background color.
Release Notes
>>>Added 2 more parameters:
"Up Line Source" & "Dn Line Source"
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.