ZenAlgo - Advanced RSI
Advanced RSI keeps the familiar 0-100 RSI scale, then adds enough context to show how momentum is changing, not only whether RSI is above 70 or below 30. It combines RSI with a moving average, a momentum histogram, divergences, optional Bollinger Bands, and a multi-timeframe table.
Start with the two main lines
The RSI line shows current momentum. The RSI-based MA is its smoother reference.
When RSI moves above its MA, momentum is improving relative to its recent average. When it moves below, momentum is weakening. This relationship is often more informative than the absolute RSI value: RSI can remain overbought during a strong trend, or oversold during a persistent decline.
The histogram shows the same relationship more visibly:
- Bars above the baseline mean RSI is above its MA.
- Bars below the baseline mean RSI is below its MA.
- Growing bars show the gap expanding; fading bars show the gap contracting.
Reading extremes and divergences
The horizontal levels at 70, 50, and 30 divide overbought, neutral, and oversold areas. These are context zones, not automatic reversal points.
If Bollinger Bands are selected for the RSI MA, the bands show how unusual the current RSI move is relative to its recent variation. Touching a band means momentum is stretched; it does not say when price will reverse.
Divergence labels compare price swings with RSI swings:
| Label | Meaning |
|---|---|
Bullish R | Price makes a lower low while RSI makes a higher low; possible bearish exhaustion |
Bearish R | Price makes a higher high while RSI makes a lower high; possible bullish exhaustion |
Bullish H | Hidden bullish divergence; possible continuation within an uptrend |
Bearish H | Hidden bearish divergence; possible continuation within a downtrend |
Divergences are most useful when they occur at a meaningful price level. A label in the middle of an unstructured range deserves less attention.
Diamonds and the multi-timeframe table
A lower diamond appears when RSI crosses upward through its MA in the oversold zone. An upper diamond marks the bearish equivalent in the overbought zone. These signals combine an extreme reading with a change in momentum, but they still need price confirmation.
The multi-timeframe table shows RSI, its MA, and interpreted trend on several timeframes. Use it to avoid reading a short-term signal in isolation. For example, an oversold bullish diamond has different context when the higher timeframes are rising than when all of them remain bearish.
A simple workflow
- Check whether RSI is above or below its MA.
- Look at the histogram to see whether that relationship is strengthening or fading.
- Note whether RSI is near an extreme, a band, or a divergence.
- Compare the reading with the multi-timeframe table and the price chart.
Alerts
| Alert | Trigger | Typical use |
|---|---|---|
| Bullish RSI Cross | RSI crosses upward in the oversold zone; shown by the lower diamond | Watch for a possible recovery |
| Bearish RSI Cross | RSI crosses downward in the overbought zone; shown by the upper diamond | Watch for a possible pullback |
The R and H divergence labels are visual markers only and do not have separate built-in alert conditions.