ChartVPS Updated   
This is an amped-up version of the original Relative Strength Index (RSI) oscillator, giving the slope a smoother, sometimes leading edge. Our not-so-secret sauce within the algo is price/volume weighing, completely user configurable. NEXT RSI is intended to be used just like the vanilla RSI within the context of technical analysis: identifying overvalued (above upper limit) and undervalued (below lower limit) price action, as well as establishing a bias baseline (bullish if over 50; bearish if under 50). Higher NEXT RSI bottoms compared to lower price bottoms signify bullish divergence; lower NEXT RSI tops compared to higher price tops signify bearish divergence.

Below is a screenshot comparing NEXT RSI with default settings to vanilla RSI on AAPL M1 chart.

Input parameters:

Length: controls the averaging length of the RSI line.

P/V Weighing: a price/volume smoothing filter, with higher values yielding a smoother RSI line. Values over 10 can introduce lag but also help identify trend. We thought 5 was a pretty good momentum gauge (strengthening, weakening).

P/V Source: this variable is where you can get creative and blend volume with either direct price action (close, H+L/2, etc.) or other indicators such as moving averages, stochastic oscillator, and even the vanilla RSI.
Release Notes:
- added user input for defining custom overvalued/undervalued levels
- prepared NEXT RSI line (plot) for export - to be used with the upcoming NEXT Strategy Plotter add-on, intended for historic and real-time signal/arrow plotting
- updated visuals style for improved legibility and analysis

Example strategy: NEXT RSI divergence play on QQQ M1 intraday price action

Release Notes:

New user input parameters:
Upper Limit - the NEXT RSI level above which market is considered overvalued, default is 75
Base Bias - the NEXT RSI level above which market bias is considered bullish, and below bearish
Lower Limit - the NEXT RSI level below which market is considered undervalued, default is 25

These levels, along with the NEXT RSI line, will be compatible with the upcoming NEXT Strategy Plotter add-on (scheduled for October 7, 2021 release) to define strategy entry and exit rules. The following screenshot illustrates an example of a NEXT RSI momentum play (overbought/oversold) strategy on QQQ 30-second chart via NEXT Strategy Plotter. Long when NEXT RSI crosses above Lower Limit, short when NEXT RSI crosses below Upper Limit. Just an educational example, not a recommendation.

Release Notes:
NEXT RSI Plot is fully compatible as a Signal Source for NEXT Strategy Visualizer, a visual strategy builder, intended primarily for discretionary trading.
Below: NEXT RSI (Length 9, P/V Weighing 3) overbought/oversold (contra-trend, momentum) strategy plotted on EURUSD 10-Range chart via NEXT Strategy Visualizer.

Release Notes:

ChartVPS Technologies |
Protected script
This script is published closed-source but you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?