FREE INDICATOR: Relative Momentum Index (RMI) by TheLark

RMI, as requested by glaz

Description:
The Relative Momentum Index was developed by Roger Altman and was introduced in his article in the February, 1993 issue of Technical Analysis of Stocks & Commodities magazine.
While your typical RSI counts up and down days from close to close, the Relative Momentum Index counts up and down days from the close relative to a close x number of days ago. The result is an RSI that is a bit smoother.

Usage:
Use in the same way you would any other RSI. There are overbought and oversold zones, and can also be used for divergence and trend analysis .

Grab the source code here:
Installation video by @ChrisMoody here :

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Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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?

study(title = "TheLark Relative Momentum Index (RMI)",overlay=false)

//•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•//   
//                                             //
//                RMI BY THELARK               //
//                 ~ 2-19-14 ~                 //
//                                             //
//                     •/•                     //
//                                             //
//    https://www.tradingview.com/u/TheLark    //
//                                             //
//•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•//

// Relative Momentum Index (RMI)
// "... The Relative Momentum Index was developed by Roger Altman 
// and was introduced in his article in the February, 1993 issue of 
// Technical Analysis of Stocks & Commodities magazine. "
// "... While RSI counts up and down days from close to close, the Relative 
// Momentum Index counts up and down days from the close relative to a 
// close x number of days ago. "

// Requested by glaz @ TradingView

// inputs 
len = input(20, title="Length")
mom = input(4, title="Momentum",minval=0)
ob = input(70,title="Overbought")
os = input(30,title="Oversold")
c = close
docol = input(true,title="Change Color?")
dosignal = input(true,title="Show Signal Line?")
sig = input(6,title="Signal Length")
dohist = input(false,title="Show Hist?")
//calc
up = ema(max(c - c[mom],0),len)
dn = ema(max(c[mom] - c,0),len)
rmi = dn == 0 ? 0 : 100 - 100 / (1 + up / dn)
signal = sma(rmi,sig)

//plots
hline(ob)
hline(os)
plot(dohist?(rmi-signal)+50:na,color=#FF006E,histbase=50,style=histogram,linewidth=2)
plot(dosignal?signal:na,color=#D87A68)
col = docol ? rmi > rmi[1] ? #0094FF : #FF006E : #0094FF
plot(rmi, color=col,linewidth=2)

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