RSI Momentum SuperTrend

█ OVERVIEW
RSI Momentum SuperTrend is a momentum-based trend oscillator that combines classic RSI with a SuperTrend mechanism calculated directly on RSI values. Instead of using price-based ATR, the indicator measures volatility of RSI itself, allowing dynamic adaptation to different markets and timeframes.
It is fast and responsive, designed for early detection of momentum shifts. It works especially well for divergence analysis, pullbacks within higher timeframe trends, and as a confirmation tool in contrarian strategies.

█ CONCEPT
The indicator was created to combine:
- the sensitivity of an oscillator (RSI)
- the stability of the SuperTrend mechanism

The key element is calculating “ATR” directly on RSI changes and then normalizing it. This allows:
- automatic adaptation to the instrument’s behavior
- consistent performance across different markets and timeframes

Dynamic upper and lower bands (RSI ± adaptive range) act as momentum control levels.
A trend change occurs only after these levels are broken, helping to reduce market noise.

█ FEATURES
Data source:
- RSI (default: close)
- RSI length
- EMA smoothing

Additional:
- Optional raw RSI display
(can be used to build custom strategies and to compare with the SuperTrend line)

Calculations:
- EMA-smoothed RSI
- Adaptive ATR calculated on RSI changes
- Volatility normalization
- Dynamic bands: RSI ± (ATR × multiplier)
- Trailing mechanism:
- Levels are dynamically updated according to trend direction
- Direction changes only after they are broken
- Trend change logic:
- Down → Up: RSI > upper band
- Up → Down: RSI < lower band

Visualization:
- RSI line with dynamic trend coloring
- SuperTrend line on RSI
- Gradient fill between RSI and ST
- Candle coloring according to trend
- Overbought / Oversold zones with fill
- Fog on Price (optional). Trend direction visualization directly on the price chart

Alerts:
- Trend change to UP
- Trend change to DOWN

█ HOW TO USE
Adding:
Paste the code into Pine Editor or search for “RSI Momentum SuperTrend”

Main settings:
- RSI Length → default 14
- RSI Smoothing → signal smoothing
- ATR Length (on RSI) → adaptation control
- ATR Multiplier → main sensitivity parameter
- Show Raw RSI → raw RSI preview
- Color Candles → candle coloring according to trend
- Fog on Price → trend visualization on price

Interpretation:
- Green color = uptrend
- Red color = downtrend
- Higher multiplier = fewer signals, higher quality
- Lower multiplier = faster reaction, more signals

█ APPLICATIONS
It is recommended to use the indicator together with other technical tools.
If you want to use it not as a trend indicator but as an entry tool, consider combining it with a slower trend indicator (e.g. classic SuperTrend). In this setup:
- the main trend is defined by the slower indicator
- entries are taken only in its direction
- RSI Momentum ST helps to identify local pullbacks within the trend

Ideal for:
- Divergences
e.g. price makes higher highs while RSI Momentum ST makes lower highs → possible trend weakness
similarly: price goes down while the indicator goes up
- Pullbacks in higher timeframe trends
e.g. H4 uptrend, while on M15 RSI Momentum ST enters oversold zone → potential end of pullback
- Contrarian strategies
e.g. strong downtrend, while RSI Momentum ST starts turning up → possible market reaction
Early detection of momentum shifts

Best combined with:
- Support and resistance levels
- Market structure (HH, HL, LH, LL)
- Volume
- Price action
- Higher timeframe analysis

█ NOTES
- Works on all markets and timeframes
- Faster than classic price-based trend indicators
- Best results are achieved when used with market context
- Not a standalone trading system