OPEN-SOURCE SCRIPT
Momentum Based RSI
The Momentum Based RSI is an enhancement to the RSI. it incorporates 2 sections:
at the end both of those are multiplied to create a more responsive RSI which reacts fast to market moves while still providing a whip ressistant tool.
Momentum Calculation
The "MA Ratio" as i like to call it results from comparing 2 MAs (both can be set to whatever type you like) against eachother, which, in the end, provides a Ratio that visualizes the difference. It is simple yet effective
RSI
An Old yet popular tool which dates back to 1978. In and out of itself it is a great tool, however it still can be enhanced.
The Combination
The RSI and the MARatio are multiplied together, which results in an RSI that is ampliefied by the speed of the market movements.
This proves highly effective, since the MA Ratio is hovering around at the same level. However during trends, it picks up speed in either of both directions which marginally increases the RSI's response the said movement.
Why its Creative, New and Good
While it is a super simple concept, it still holds a lot of power relative to its sophistication. Traders may use it like they used the Vanilla RSI (e.g Trend following, Mean-reversion or other).
Unlike RSI with momentum overlays, this indicator actively uses an MA Ratio multiplier for simplicity and responsiveness.
At last, Its primary goal is to detect trends faster while not creating more noise & false signals.
What not to do
if youre using this indicator, please do NOT change the Fast MA to be slower than to Slow MA or vice versa, since you'll be getting broken & noise induced signals which may not align with your goals.
Great inventions require great Care
As with anything, you should not use this tool without any other confluence. As great as the backtests may be, you dont know what the future holds, be careful!
This indicator is not a guaranteed predicition tool. If youre going to use it for investment decisions, please use it in coherence with other tools.
Thank you for reading!
- MA Ratio (Fast/Slow)
- RSI
at the end both of those are multiplied to create a more responsive RSI which reacts fast to market moves while still providing a whip ressistant tool.
Momentum Calculation
The "MA Ratio" as i like to call it results from comparing 2 MAs (both can be set to whatever type you like) against eachother, which, in the end, provides a Ratio that visualizes the difference. It is simple yet effective
RSI
An Old yet popular tool which dates back to 1978. In and out of itself it is a great tool, however it still can be enhanced.
The Combination
The RSI and the MARatio are multiplied together, which results in an RSI that is ampliefied by the speed of the market movements.
This proves highly effective, since the MA Ratio is hovering around at the same level. However during trends, it picks up speed in either of both directions which marginally increases the RSI's response the said movement.
Why its Creative, New and Good
While it is a super simple concept, it still holds a lot of power relative to its sophistication. Traders may use it like they used the Vanilla RSI (e.g Trend following, Mean-reversion or other).
Unlike RSI with momentum overlays, this indicator actively uses an MA Ratio multiplier for simplicity and responsiveness.
At last, Its primary goal is to detect trends faster while not creating more noise & false signals.
What not to do
if youre using this indicator, please do NOT change the Fast MA to be slower than to Slow MA or vice versa, since you'll be getting broken & noise induced signals which may not align with your goals.
Great inventions require great Care
As with anything, you should not use this tool without any other confluence. As great as the backtests may be, you dont know what the future holds, be careful!
This indicator is not a guaranteed predicition tool. If youre going to use it for investment decisions, please use it in coherence with other tools.
Thank you for reading!
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
Para acesso rápido no gráfico, adicione esse script para seus favoritos — saiba mais aqui.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
Para acesso rápido no gráfico, adicione esse script para seus favoritos — saiba mais aqui.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.