Adapted RSI w/ Multi-Asset Regime Detection v1.1

How it works

The Adapted RSI calculates momentum by measuring price changes over 14 periods, identifying gains and losses from daily closing prices. It computes the Relative Strength (RS) by dividing average gains by average losses, then converts this to an RSI value between 0 and 100.

The indicator employs a sophisticated regime detection system that classifies market conditions as bullish or bearish based on the 50 RSI level. It generates signals across five levels: Strong Buy, Buy, Neutral, Sell, and Strong Sell, providing traders with nuanced market momentum insights.

Why it may be useful

This advanced RSI approach offers traders a more comprehensive view of market conditions by simultaneously analyzing multiple assets and timeframes. It goes beyond traditional RSI interpretation, providing deeper insights into market momentum and potential trend reversals.

The multi-asset and multi-timeframe approach allows traders to detect broader market trends and potential opportunities across different securities. By presenting information through color-coded signals and dynamic tables, the indicator simplifies complex market analysis and helps traders make more informed decisions.

When to explore it

The Adapted RSI is most effective when traders want to gain a comprehensive understanding of market momentum across multiple assets and timeframes. It works particularly well during trending markets, where clear momentum signals can guide trading decisions.

Traders should pay special attention to extreme readings (Strong Buy/Sell) which indicate high probabilities of mean reversion. The indicator is especially useful when analyzing correlated markets or when seeking to understand broader market conditions beyond a single asset's performance.

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