Smart RSI

WHAT IS IT?

The RSI (Relative Strength Index), developed by J. Welles Wilder, measures the speed and magnitude of directional price movement on a 0-100 scale. Values above 70 indicate overbought conditions, below 30 indicate oversold. The standard RSI uses a fixed 14-period calculation with no adaptive smoothing or dynamic overbought/oversold boundaries.

INDICATOR PRIME IMPROVEMENTS

Smart RSI applies a fixed EMA-3 smoothing to the raw RSI, which is optimal across all timeframes. Bollinger Bands are applied directly to the smoothed RSI, creating adaptive overbought and oversold boundaries that adjust to RSI's own volatility rather than fixed levels. The RSI line changes color by zone (gold neutral, neon red overbought, neon green oversold) with multi-layer glow visuals. Cross-above-30 and cross-below-70 signals are marked with triangle arrows. Full regular and hidden divergence detection operates on the smoothed RSI line.

HOW TO USE

The highest-probability signals occur when RSI crosses above 30 while simultaneously below the BB lower band, and when RSI crosses below 70 while above the BB upper band. These represent extreme RSI readings relative to its own recent behavior. Hidden bullish divergences during pullbacks in uptrends are among the most reliable continuation signals in this indicator set.

KIT CONFLUENCE

Smart RSI anchors the Momentum & Divergence Kit as the primary overbought/oversold tool. Combine with Premium Divergence: an oversold RSI reading simultaneous with a HIGH or EXCELLENT divergence score creates both level-based and divergence-based confirmation. Use On Balance Volume Plus alongside: RSI oversold with OBV showing accumulation is a high-conviction reversal setup.

Click here to get the Momentum & Divergence Kit