TRSI_L
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This technical script is designed to provide a multi-layered smoothing of price momentum, helping traders filter out "market noise" to identify clearer trends. Instead of relying on a single raw data point, the logic builds a complex chain of calculations—essentially "smoothing the smooth"—to create a more stable visual signal.
The Logic Flow
The script functions by processing data through five distinct stages:
1. The Base Momentum (RSI) The foundation of the indicator is a standard Relative Strength Index (RSI) calculated over 14 periods. This measures the speed and change of price movements. In this tool, it serves as the raw input for all subsequent calculations.
2. The Triple Smoothing Chain (EMA Layers) To remove erratic spikes from the RSI, the script applies three consecutive layers of Exponential Moving Averages (EMA).
- It takes the first EMA of the RSI.
- It then takes an EMA of that result.
- Finally, it calculates a third EMA based on the previous step.
By layering these three averages, the tool significantly dampens sudden price fluctuations, leaving behind a much more fluid and stable trend line (represented as the blue line).
3. The Final Refinement (SMA & Displacement) To provide an even more stabilized signal, the script takes the final result of the triple smoothing and applies a 5-period Simple Moving Average (SMA). Additionally, this final line is "displaced" or shifted 3 bars to the right. This shift helps in visually separating the primary trend from immediate price action, reducing the likelihood of entering a trade based on a temporary fluctuation.
Visual Summary
When viewing the indicator on a chart, you are seeing the result of this hierarchy:
- Gray Line: The base RSI (Raw Momentum).
- Intermediate Lines: The transitional smoothing steps used to filter the data.
- Blue Line: The result of the triple-layered exponential smoothing.
- Red Line: The final smoothed and shifted output, intended to represent the most stable trend direction.
Summary of Purpose
The core logic here is Successive Smoothing. By taking a momentum oscillator and passing it through multiple mathematical filters (EMA and SMA), the script aims to provide a "cleaner" version of price momentum that ignores minor market jitters in favor of identifying the broader underlying trend.
//+------------------------------------------------------------------+
//| 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;
limit=Bars-counted_bars;
// 1) RSI 14 period of close. Plot this as the gray line
// for(i = limit; i >= 0; i--)
for(i=0; i<limit; 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--)
for(i=0; i<limit; 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--)
for(i=0; i<limit; 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--)
for(i=0; i<limit; 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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