RSI [Hash Capital Research]

RSI [Hash Capital Research] is a visually enhanced momentum indicator built on the classic Relative Strength Index.

This version expands RSI into a more flexible analytical tool through smoothing options, adaptive zone-based coloring, optional signal line overlays, and divergence detection.
It is designed as a context-building indicator, not a standalone entry system.

What This Indicator Does
This script calculates a smoothed RSI using user-defined parameters and then provides multiple optional enhancements:

1. Adaptive RSI Visualization
The core RSI is plotted with:

• Zone-based color changes (neutral, oversold, overbought)
  
• Optional glow effects to emphasize extreme conditions
  
• User-defined color intensity and midline visibility
  

The goal is to provide clearer visual segmentation of trend strength and momentum behavior.

2. Custom Smoothing & Signal Line Options
The indicator allows:
Multi-layer smoothing for RSI stability
An optional signal line using the trader’s preferred moving-average method (SMA, EMA, SMMA/RMA, WMA, VWMA)
This helps operators examine whether momentum is accelerating or stabilizing relative to its mean.

3. Overbought/Oversold Tools
User-defined thresholds determine:

• Highlighted zones
  
• Optional markers for extreme reversals (based on RSI + momentum + velocity criteria)
  
• Midline (50) cross highlights for trend-bias transitions
  

These features help contextualize where the RSI sits relative to broader momentum regimes.

4. Divergence Detection (Optional)
When enabled, the script scans for regular bullish and bearish divergences using pivot-based structure.
It compares:

• Price making lower lows vs RSI making higher lows (bullish)
  
• Price making higher highs vs RSI making lower highs (bearish)
  

Detected divergences are plotted on the RSI panel with visual labels.
This detection uses pivot lookbacks and range limits defined by the user.

5. Alerts

• The indicator provides optional alerts for:
  
• Extreme reversals
  
• Overbought/oversold momentum shifts
  
• Midline (50) crossovers
  
• Bullish / bearish divergences
  

Alerts are intended for monitoring, not for automated execution.

How to Use It
This RSI modification is intended to support broader analysis workflows, including:

• Identifying regime shifts using midline crosses
  
• Monitoring momentum structure across trend phases
  
• Highlighting oversold or overbought clustering
  
• Adding a visual signal line to interpret momentum smoothing
  
• Spotting divergence between price and RSI
  

As with all indicators, this tool should be used as one component of a complete analysis framework.

What Makes This Version Distinct

• This script maintains the core behavior of RSI but introduces:
  
• A multi-layer smoothing system
  
• Adaptive colors calibrated to oversold/neutral/overbought zones
  
• Optional glow visualizations
  
• A modular signal-line engine with multiple MA types
  
• Configurable divergence detection with visual labels
  
• Multiple marker placement modes for extreme conditions
  

These features expand RSI’s readability while keeping its underlying logic transparent and consistent with common operator workflows.

Important Notes

• This is an indicator, not a strategy. It does not execute trades or calculate performance metrics.
  
• The visual enhancements are designed to improve clarity, not to generate automated “buy” or “sell” systems.
  
• Divergence detection is optional because divergence is inherently contextual and may not apply equally across all markets or timeframes.