VetexFX - RSI Adaptive MA

RSI adaptive moving average is a client side VTL indicator. Adaptive Moving Averages changes its sensitivity to price fluctuations. The Adaptive Moving Average becomes more sensitive during periods when price is moving in a certain direction and becomes less sensitive to price movement when price is volatile. RSI adaptive moving average uses the Relative Strength Index (RSI) in the calculation of adaptive smoothing of price. RSI being a momentum indicator, the RSI adaptive moving average is responsive to trending price moves. When the trend is strong, price will move above or below the RSI adaptive moving average, and when price momentum diminishes, the adaptive moving average moves close to price action. Thus the RSI adaptive moving average clearly shows phases strong trend and consolidation. Traders can open trades when the emergence of a strong trend is identified by price moving away from the RSI adaptive moving average. Profits can be locked in when price comes back to the moving average.
Traders can open Buy position when price moves above RSI adaptive moving average and the price bars remain above the average. Profit can be booked when the price bars comes back to the moving average and begins to trade above and below the moving average. The opposite conditions can be used to open Sell positions.
RSI adaptive moving average can be customized through the parameters. To change the parameter values, open the VTL script in VTL editor. The option available is RSI period. Enter the new parameter value, compile the script and attach it chart again. (2.49 KB)