RSI VWAP v1 [JopAlgo]

RSI VWAP v1 [JopAlgo] — the classic RSI, made a bit smarter and volume-aware

We know there’s nothing new under the sun and the original RSI already does a great job. But we’re always chasing small, practical improvements—so here’s our take on RSI. Same core idea, clearer visuals, and the option to make it volume-oriented via VWAP smoothing. Prefer the traditional feel? SMA and EMA are still here—pick and compare what fits your market and timeframe. We hope this version genuinely makes your decisions easier.

What you’ll see

The RSI line with 70 / 50 / 30 rails and subtle background.

A smoothing line you can choose: VWAP, SMA, or EMA (drawn over RSI).

Shading that shows RSI vs. its smoothing (above = green tone, below = red tone).

Optional OB/OS highlight (only the portion above 70 / below 30).

Optional divergence detection & alerts (off by default to keep things light).

What’s new, and why it helps

1) VWAP-based RSI smoothing
Instead of smoothing RSI with a plain MA, you can use VWAP computed on RSI. That brings participation (volume) into the picture, which often reads momentum quality better—especially in crypto or during news hours.

2) Adaptive blending for stability

Low-volume periods: gently blends VWAP → EMA so signals don’t get brittle when participation is thin.

Volume spikes (anti-auction): tempers overreactions by blending toward EMA when z-score of volume is extreme.

Reliability guard: if volume looks unreliable, the script can auto-fallback to EMA to keep readings consistent.

3) Clean, readable visuals
A quick glance tells you regime (50 line), trigger (RSI vs. its smoothing), and stretch (70/30). No clutter.

4) Divergence on demand
Regular bullish/bearish divergence detection and alerts are opt-in. If you use them, toggle on; if not, the indicator stays lightweight.

Read it fast (checklist)

Regime: RSI ≥ 50 = bullish bias; ≤ 50 = bearish bias.

Trigger: look for RSI crossing its smoothing in the direction of the regime.

Stretch: near 70/30, avoid chasing; prefer a retest/hold.

Volume context: if the panel falls back to EMA, treat the flow signal as less reliable for the moment.

Simple playbook

Trend-pullback (continuation)

RSI ≥ 50 and RSI crosses up its smoothing → long bias.

Best at real levels (see “Location first” below), not in the middle of nowhere.

Reclaim / reject at a level

Near 70, weak candles and RSI back under its smoothing → mean-revert toward the middle.

Mirror this near 30 for longs.

Divergence as a secondary check

Start with regime + trigger; use divergence only as extra confirmation, especially on 4H/D.

Location first, always

Your timing improves dramatically at objective references: Volume Profile v3.2 [JopAlgo] (VAH/VAL/POC/LVNs) and Anchored VWAP [JopAlgo] (session/weekly/event).

No level, no trade. RSI helps time, levels define edge.

Settings that actually matter

RSI Length (default 14)

Lower = faster, noisier; higher = smoother, fewer signals.

Smoothing Type

EMA: fastest trigger; good for intraday.

SMA: calmer bias; popular for swing.

VWAP: volume-weighted RSI baseline; great when participation matters.

VWAP Length & adaptive blend

Too jittery? lengthen VWAP or reduce max blend.

Too sluggish? shorten VWAP or allow a bit more blend.

Anti-auction Z-score thresholds

Higher values = intervenes less often; lower = tames spikes sooner.

Divergence toggle

Enable only if you actually want divergence markers/alerts.

Signal gating (ignore first bars)

Markets can be noisy right after sessions turn. Delay signals a few bars if you prefer clean reads.

Starter presets

Scalp (1–5m): RSI 9–12, EMA smoothing, short lengths.

Intraday (15m–1H): RSI 10–14, EMA or VWAP smoothing.

Swing (4H–1D): RSI 14–20, SMA or VWAP, modest blend.

Works even better with other [JopAlgo] tools

Volume Profile v3.2: take triggers at VAH/VAL/POC/LVNs; target HVNs or prior swing.

Anchored VWAP: clean reclaims/rejections plus RSI regime + trigger = higher-quality entries.

(Optional) CVDv1: if aggressor flow aligns with your RSI signal, conviction improves.

Common mistakes this version helps avoid

Taking every RSI cross without levels.

Chasing near 70/30 without a retest.

Over-trusting RSI during extreme volume spikes or illiquid patches (the blend/fallback guards against this).

Disclaimer

This indicator and write-up are for educational purposes only and not financial advice. Trading involves risk; results vary by market, instrument, and settings. Backtest first, act at defined levels, and manage risk. No guarantees or warranties are provided.