TRSI_2
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This script is a specialized technical analysis tool designed to smooth out price action data to help traders identify trends more clearly. Instead of looking at raw, volatile price movements, it processes the Relative Strength Index (RSI) through multiple layers of "smoothing" filters.
The logic follows a specific multi-step progression:
1. The Foundation (Base RSI) The process begins by calculating a standard RSI based on the closing prices over a 14-period timeframe. This serves as the raw data source for everything that follows and is represented on your chart as a gray line.
2. The Smoothing Layers (Triple Exponential Moving Average) To remove "noise" from the base RSI, the script applies three consecutive layers of Exponential Moving Averages (EMA).
- It first takes the EMA of the RSI.
- It then takes the EMA of that result.
- Finally, it takes a third EMA of that calculation.
By layering these averages, the script filters out minor price fluctuations, resulting in a much smoother trend line (shown as a blue line). This helps in visualizing the underlying momentum without being distracted by temporary spikes.
3. The Final Transformation (Shifted Simple Moving Average) The final step takes that triple-smoothed data and applies a 5-period Simple Moving Average (SMA). A key unique feature here is that this final calculation is "displaced" or shifted 3 bars to the right. This creates the final indicator line (shown as a red line), which provides a lagged, highly stabilized view of the trend.
Summary for the Trader Essentially, this script acts like a series of filters. It takes the raw momentum (RSI), strips away the volatility through three layers of exponential smoothing, and then applies a final simple average with a time shift. The goal is to provide a refined visual signal that highlights long-term trend directions while suppressing the "jitter" often found in standard oscillators.
//+------------------------------------------------------------------+
//| TRSI |
//| Copyright © 2007, Robert Hill |
//| http://www.metaquotes.net/ |
//| |
//| This is the formula from Mario:
//|
//| 1) RSI 14 period of close. Plot this as the gray line
//|
//| 2) 3-period exponential moving average of #1 above.
//|
//| 3) 3-period exponential moving average of #2 above.
//|
//| 4) 3-period exponential moving average of #3 above.
//| Plot this as the blue line.
//|
//| 5) 5-period simple moving average of #4 above
//| displaced 3 bars to the right.
//| Plot this as the red line.
//| |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, Robert Hill "
#property link "http://www.metaquotes.net/"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 5
#property indicator_color1 Gray
#property indicator_color2 Aqua
#property indicator_color3 Red
#property indicator_color4 Yellow
#property indicator_color5 White
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 1
#property indicator_width4 1
#property indicator_width5 1
extern string r1=" 1. RSI(14) of Close";
extern string r2=" 2. EMA(3) of #1";
extern string r3=" 3. EMA(3) of #2";
extern string r4=" 4. EMA(3) of #3";
extern string r5=" 5. SMA(5) of #4";
extern string r6=" shifted right 3 bars";
extern int RSI_Period = 14;
extern string p = "--Applied Price Types--";
extern string p0 = " 0 = close";
extern string p1 = " 1 = open";
extern string p2 = " 2 = high";
extern string p3 = " 3 = low";
extern string p4 = " 4 = median(high+low)/2";
extern string p5 = " 5 = typical(high+low+close)/3";
extern string p6 = " 6 = weighted(high+low+close+close)/4";
extern int RSI_AppliedPrice = 0;//0=close, 1=open, 2=high, 3=low, 4=median(high+low)/2, 5=typical(high+low+close)/3, 6=weighted(high+low+close+close)/4
extern int EMA1_Period = 3;
extern int EMA2_Period = 3;
extern int EMA3_Period = 3;
extern int SMA_Period = 5;
extern int SMA_Shift = 3;
extern bool PlotEMA1 = true;
extern bool PlotEMA2 = true;
//---- buffers
double RSI[];
double EmaOfRSI[];
double EmaOfEmaOfRSI[];
double EmaOfEmaOfEmaOfRSI[];
double TRSI[];
double TempEma1RSI[];
double TempEma2RSI[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- drawing settings
IndicatorBuffers(7);
SetIndexStyle(0,DRAW_LINE);
SetIndexStyle(1,DRAW_LINE);
SetIndexStyle(2,DRAW_LINE);
SetIndexDrawBegin(0,RSI_Period);
IndicatorDigits(4);
//---- 3 indicator buffers mapping
if(!SetIndexBuffer(0,RSI) &&
!SetIndexBuffer(1,EmaOfEmaOfEmaOfRSI) &&
!SetIndexBuffer(2,TRSI) &&
!SetIndexBuffer(3,EmaOfRSI) &&
!SetIndexBuffer(4,EmaOfEmaOfRSI) &&
!SetIndexBuffer(5,TempEma1RSI) &&
!SetIndexBuffer(6,TempEma2RSI))
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
SetIndexLabel(0,"RSI");
SetIndexLabel(1,"TripleEmaOfRSI");
SetIndexLabel(2,"TRSI");
SetIndexLabel(3,"EmaOfRSI");
SetIndexLabel(4,"DoubelEmaOfRSI");
SetLevelStyle(STYLE_DOT, 1, Gray);
SetLevelValue(0, 30);
SetLevelValue(1, 50);
SetLevelValue(2, 70);
IndicatorShortName("TRSI("+RSI_Period+")");
//---- initialization done
return(0);
}
int start()
{
int i, limit;
int counted_bars=IndicatorCounted();
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars - RSI_Period;
// 1) RSI 14 period of close. Plot this as the gray line
for(i = limit; i >= 0; i--)
RSI[i] = iRSI(NULL,0,RSI_Period,RSI_AppliedPrice,i);
// 2) 3-period exponential moving average of #1 above.
for(i = limit; i >=0; i--)
TempEma1RSI[i] = iMAOnArray(RSI,Bars,EMA1_Period,0,MODE_EMA,i);
// 3) 3-period exponential moving average of #2 above.
for(i = limit; i >=0; i--)
TempEma2RSI[i] = iMAOnArray(TempEma1RSI,Bars,EMA2_Period,0,MODE_EMA,i);
// 4) 3-period exponential moving average of #3 above.
for(i = limit; i >=0; i--)
EmaOfEmaOfEmaOfRSI[i] = iMAOnArray(TempEma2RSI,Bars,EMA3_Period,0,MODE_EMA,i);
//========== COLOR CODING ===========================================
// 5) 5-period simple moving average of #4 above
// displaced 3 bars to the right.
for(i = limit; i >=0; i--)
{
if (PlotEMA1) EmaOfRSI[i] = TempEma1RSI[i]; else EmaOfRSI[i] = EMPTY_VALUE;
if (PlotEMA2) EmaOfEmaOfRSI[i] = TempEma2RSI[i]; else EmaOfEmaOfRSI[i] = EMPTY_VALUE;
TRSI[i] = iMAOnArray(EmaOfEmaOfEmaOfRSI,Bars,SMA_Period,SMA_Shift,MODE_SMA,i);
}
return(0);
}
//+------------------------------------------------------------------+
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