Figurelli RSI Indicator

Name: Figurelli RSI
Download: Figurelli RSI.mq4 (3.1 Kb)

Description:

The original RSI

In my opinion, Welles Wilder RSI (Relative Strength Index) is a great momentum oscillator that works fine for small periods values (from 2 to 20).

The proposed RSI

The main idea of the proposed RSI is better detect the signal overbought/oversold situations using larger periods for better trend detection in any timeframe.

For this, I did some changes to it performe as good for greater periods, like 120, introducing a gain variable.

So, if you use 120 period in original Wilder RSI, you can inject a gain to see the graph as well as small periods.

Parameters description:

• period: original RSI period
• gain: gain injected for greater periods better visualization

Example 1: the advantage of larger periods using Wilder RSI gain injection in EUR/USD H1

• in the graph we have the two indicators comparison: Wilder RSI (blue) x Figurelli RSI (red)
• our target is better detect signal points [1] and [4]
• note that original RSI with period 14 detects points [3] and [6] are almost the same, but points [1] and [4] are very differents
• in Figurelli RSI with period 120 and gain 10, we can see points [2] and [5] that better detect the signal overbought/oversold situations

Example 2: the advantage of larger periods using Wilder RSI gain injection in EUR/USD D1

• same as example 1, in the graph we have the two indicators comparison: Wilder RSI (blue) x Figurelli RSI (red)
• our target is better detect signal points [1], [2] and [3]
• note that for Wilder RSI point [1] is oversold, while in Figurelli RSI point [2] is oversold

Adjustment tips:

• if you use gain 1 the Figurelli RSI will be equal to Wilder RSI
• if you increase your period, tries to increase the gain, so for 120 period you can try gain 10 to better see the great Wilder RSI visibility even in greater periods.

Source: Codebase.mql4.com