Adaptive RSI

The Adaptive RSI is a new version of the famous RSI that can adapt to environments and produce both Mean Reverting & Trend Following signals.

The Benefits

- Adaptive behaviour can allow fast entries while also filtering false signals
- Provides signals for both catching high/low value zones and trends
- Very good trend catching in trending environments
- Visualization provides Overbought/Oversold signal highlighting of more restrictive (diamonds) and less restrictive type (background), divergence between smoothed and basic RSI, Adaptive RSI values and bar coloring.
- Works well on BNBUSD

The Idea

The main idea is to give the RSI a more adaptive approach to do the market, so it can speed it up during potential oppurtunities and slow down during more dangerous environments.
This would theoreticly allow it to be a lot more versatile and provide a more accurate set of signals. On top of that, the adaptive approach could not only provide great entries but also exits when following the indicator mean-reverting style.

How it works

The indicator sets up 3 conditions, the more of them are true, the more aggressive approach will be chosen. This allows the indicator to shift speed, adapt to any environment and avoid too many false signals.

Then it uses a smoothing to improve accuracy, that is adaptive in the same way as the RSI itself.

It also has a option for a special ROC-weighted source, which however I do not recommend using unless you understand coding & know how it works.

Hope you enjoy Gs!
Please keep in mind no indicator is perfect and that every indicator has flaws