RSI VWAP v1 [JopAlgo]

RSI VWAP v1.1 [JopAlgo] made stronger by volume-aware!

We know there's nothing new and the original RSI already does an excellent job. We're just working on small, practical improvements – here's our take: The same basic idea, clearer display, and a single, specially developed rolling line: a VWAP of the RSI that incorporates volume (participation) into the calculation.

Do you prefer the pure classic?

You can still use Wilder or Cutler engines –
but the star here is the VW-RSI + rolling line.

This RSI also offers the possibility of illustrating a possible
POC (Point of Control - or the HAL or VAL) level.

However, the indicator does NOT plot any of these levels itself.

We have included an illustration in the chart for this!

We hope this version makes your decision-making easier.

What you’ll see

The RSI line with a 50 midline and optional bands: either static 70/30 or adaptive μ±k·σ of the Rolling Line.

One smoothing concept only: the Rolling Line (light blue) = VWAP of RSI.

Shadow shading between RSI and the Rolling Line (green when RSI > line, red when RSI < line).

A lighter tint only on the parts of that shadow that sit above the upper band or below the lower band (quick overbought/oversold context).

Simple divergence lines drawn from RSI pivots (green for regular bullish, red for regular bearish). No labels, no buy/sell text—kept deliberately clean.

What’s new, and why it helps

VW-RSI engine (default):
RSI can be computed from volume-weighted up/down moves, so momentum reflects how much traded when price moved—not just the direction.

Rolling Line (VWAP of RSI) with pure VWAP adaptation:

Low volume: blends toward a faster VWAP so early, thin starts aren’t missed.

Volume spikes: blends toward a slower VWAP so a single heavy bar doesn’t whip the curve.
You can reveal the Base Rolling (pre-adaptation) line to see exactly how much adaptation is happening.

Adaptive bands (optional):
Instead of fixed 70/30, use mean ± k·stdev of the Rolling Line over a lookback. Levels breathe with the market—useful in strong trends where static bounds stay pinned.

Minimal, readable panel:
One smoothing, one story. The shadow tells you who’s in control; the lighter highlight shows stretch beyond your lines.

How to read it (fast)

Bias: RSI above 50 (and a rising Rolling Line) → bullish bias; below 50 → bearish bias.

Trigger: RSI crossing the Rolling Line with the bias (e.g., above 50 and crossing up).

Stretch: Near/above the upper band, avoid chasing; near/below the lower band, avoid panic—prefer a cross back through the line.

Divergence lines: Use as context, not as standalone signals. They often help you wait for the next cross or avoid late entries into exhaustion.

Settings that actually matter

RSI Engine: VW-RSI (default), Wilder, or Cutler.

Rolling Line Length: the VWAP length on RSI (higher = calmer, lower = earlier).

Adaptive behavior (pure VWAP):

Speed-up on Low Volume → blends toward fast VWAP (factor of your length).

Dampen Spikes (volume z-score) → blends toward slow VWAP.

Fast/Slow Factors → how far those fast/slow variants sit from the base length.

Bands: choose Static 70/30 or Adaptive μ±k·σ (set the lookback and k).

Visuals: show/hide Base Rolling (ref), main shadow, and highlight beyond bands.

Signal gating: optional “ignore first bars” per day/session if you dislike open noise.

Starter presets

Scalp (1–5m): RSI 9–12, Rolling 12–18, FastFactor ~0.5, SlowFactor ~2.0, Adaptive on.

Intraday (15m–1H): RSI 10–14, Rolling 18–26, Bands k = 1.0–1.4.

Swing (4H–1D): RSI 14–20, Rolling 26–40, Bands k = 1.2–1.8, Adaptive on.

Where it shines (and limits)

Best: liquid markets where volume structure matters (majors, indices, large caps).

Works elsewhere: even with imperfect volume, the shadow + bands remain useful.

Limits: very thin/illiquid assets reduce the benefit of volume-weighting—lengthen settings if needed.

Attribution & License
Based on the concept and baseline implementation of the “Relative Strength Index” by TradingView (Pine v6 built-in).
Released as Open-source (MPL-2.0). Please keep the license header and attribution intact.

Disclaimer
For educational purposes only; not financial advice. Markets carry risk. Test first, use clear levels, and manage risk. This project is independent and not affiliated with or endorsed by TradingView.