A Relative Strength Index indicator with market trend filter using SET and MAI indices to assess market momentum and trend direction across different market conditions.
Explore complementary indicator rolesHow it works
The Relative Strength Index (RSI) measures the magnitude of recent price changes to evaluate momentum and identify potential overbought or oversold conditions. It calculates the ratio of upward price movements to downward price movements over a specified period, typically 14 periods.
The added market trend filter uses SET and MAI indices in conjunction with 10 and 35 period exponential moving averages (EMA) to provide additional context for trend strength and potential trade opportunities. This filter categorizes market conditions into strong uptrend, healthy uptrend, downtrend, and potential uptrend phases.
Why it may be useful
The RSI with market trend filter helps traders understand both momentum and broader market trends, providing a more comprehensive view of potential trading opportunities. By combining momentum measurement with trend assessment, traders can make more informed decisions about market entry and exit points.
The additional trend filter allows traders to validate signals and avoid trading during unfavorable market conditions. It provides a nuanced approach to trend analysis, distinguishing between different stages of market movement and helping traders align their strategies with current market dynamics.
When to explore it
This indicator is most effective in markets with clear trending characteristics, such as equities, forex, and certain commodities. It works best when used in conjunction with other technical analysis tools to confirm signals and reduce false positives.
Traders should apply this indicator during periods of stable market conditions and avoid using it during extreme volatility or major economic events. It is particularly useful for identifying potential trend reversals and assessing the strength of ongoing market movements across different timeframes.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
