Weighted Relative Strength Index [SeerQuant]

Weighted Relative Strength Index (WRSI) [SeerQuant]

The Weighted Relative Strength Index (WRSI) is an advanced momentum oscillator that enhances the traditional RSI by incorporating customizable weighting methods and moving average smoothing. With dynamic threshold logic, color-coded visuals, and optional candle coloring, the WRSI provides traders with a versatile tool for identifying trends, overbought/oversold conditions, and momentum shifts.

⚙️How It Works

1. Weighted Momentum Calculation
The indicator calculates price changes (delta) and applies a user-defined weighting method (e.g., Volume, Momentum, Volatility, or Reversion Factor) to emphasize specific market dynamics.

2. Custom Moving Average Integration
Weighted upward and downward price movements are smoothed using a selectable moving average type (e.g., SMA, EMA, TEMA, etc.), producing a weighted RSI that blends momentum and trend data.

3. Smoothed RSI Output
An additional moving average is applied to the weighted RSI for a smoothed version, offering a clearer view of momentum trends.

4. Threshold Logic
Bullish (Uptrend): WRSI exceeds the upper neutral zone boundary (50 + Neutral Zone).
Bearish (Downtrend): WRSI falls below the lower neutral zone boundary (50 - Neutral Zone).
Neutral: WRSI remains within the neutral zone.
Extreme overbought (90+) and oversold (20-) levels are marked with X’s for quick identification.

5. Dynamic Visual Representation
A color-coded line reflects the WRSI, adjusting hues based on trend direction.
Gradient fills highlight overbought/oversold zones and neutral areas.
Optional candle coloring ties price action to WRSI or smoothed RSI values.
A histogram-style fill between the WRSI and midline enhances trend strength visibility.

✨Customizable Settings

Calculation Settings:

• Calculation Source: Select the price source (default: close).
  
• Calculation Length: Set the lookback period for RSI calculation (default: 14).
  
• Moving Average Type: Choose from SMA, EMA, RMA, WMA, VWMA, LSMA, HMA, ALMA, DEMA, or TEMA (default: RMA).
  
• Moving Average Length: Adjust the smoothing period for the weighted RSI (default: 8).
  
• Neutral Zone Range: Define the width of the neutral zone around the midline (default: 5).
  

RSI Weighting Method:

• Volume: Weights by trading volume.
  
• Momentum: Weights by absolute price momentum.
  
• Volatility: Weights by standard deviation.
  
• Reversion Factor: Weights inversely to variance for mean-reversion emphasis (default: Momentum).
  

Style Settings:

• Colour Choice: Pick from predefined schemes: Default, Modern, Cool, or Monochrome (default: Default).
  
• Use Custom Colors?: Toggle to use custom bull, bear, and neutral colors (default: false).
  
• Bull/Bear/Neutral Colors: Set custom colors when enabled (default: green/red/gray).
  
• Candle Color Mode: Color candles based on WRSI or smoothed RSI (default: RSI).
  
• Color Candles?: Enable/disable candle coloring (default: false).
  

🚀Features and Benefits

• Weighted Momentum Analysis: Enhances RSI with dynamic weighting for deeper market insights.
  
• Flexible Smoothing: Multiple MA types and adjustable lengths adapt to various trading styles.
  
• Visual Intuition: Color-coded outputs, gradient fills, and optional candle coloring simplify trend analysis.
  
• Customizable Thresholds: Neutral zone and extreme levels cater to individual strategies.
  
• Overbought/Oversold Signals: Clear markers for extreme conditions improve decision-making.
  

📜Disclaimer
This indicator is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Always consult a licensed financial advisor before making trading decisions. Use at your own risk.