RSI+SMI-Waves

Indicator Description: RSI+SMI-Waves
RSI+SMI-Waves is not just a simple (mashup) of indicators — it's an advanced technical analysis tool, designed for traders who seek deeper and more precise insights, going beyond the traditional.

Pro Tip: To get the most out of this indicator and achieve a cleaner view, disable the price scale labels and line status values. You can also turn off the input values from the status line. This significantly improves visual clarity, making both SMI and RSI easier to read, without clutter.

This indicator combines two powerful oscillators — the Stochastic RSI and the SMI Ergodic — working in perfect harmony, like parts of a coordinated body: the RSI acts as the arm initiating movement, while the SMI is the head that validates and confirms the signal. This synergy avoids blind spots in market interpretation, making each slope or crossover meaningful for attentive traders.

The main advantage lies in the application of smoothed moving averages to all lines simultaneously. This reduces noise, reinforces real trends, and decreases the likelihood of false signals.

Indicator Structure
SMI Lines:

Purple: Long-period SMI (20)

Green: Short-period SMI (5)

Red: SMI signal line (also short period 5)

Stochastic RSI Lines:

Light Blue: RSI %K (base period 14, smoothed with 3 and 3)

Orange: RSI %D (signal line, same smoothing 3 and 3)

Levels and Zones
Dashed horizontal lines mark overbought and oversold zones for both RSI and SMI.

These zones are fully adjustable to suit the trader’s personal strategy or preferences.

How to Use
SMI vs RSI Crossovers: When the short-period SMI crosses above the RSI, it signals a bullish trend. When it crosses below, it indicates a bearish trend.

Moving Average Alignment: If all lines slope in the same direction, it confirms a stronger and more reliable signal.

Extreme Zones: Overbought/oversold levels are useful to anticipate possible trend reversals.

Dynamic Configuration: The trader can select the moving average type (EMA, HMA, JMA, etc.) and customize periods according to their strategy.