Dual-RSI Regime Filtering and Automatic Divergence Signals

Summary

The Fukuiz Trend indicator combines a fast RSI with a slower RSI to show relative momentum. When the fast reading is above the slow one, the indicator marks a bullish regime; when it is below, it marks a bearish regime. This relative comparison is intended to provide directional context without relying solely on fixed overbought or oversold thresholds. Reference bands at 30, 50, and 70 provide additional visual context.

A second component detects divergences by comparing consecutive RSI pivot highs or lows with price at the corresponding bars. Bullish cases pair a higher oscillator low with a lower price low; bearish cases pair a lower oscillator high with a higher price high. The described pivot confirmation requires bars to the right of the candidate pivot, so signals appear with delay. The document suggests using regimes and divergences alongside price structure, but provides no backtest or evidence of profitability; these signals are not guarantees of reversals.

Key ideas

• The fast RSI compared with the slow RSI defines the displayed momentum regime.
• The indicator marks bullish and bearish regimes with a colored band between the RSI readings.
• Bullish divergence pairs a higher RSI low with a lower price low.
• Bearish divergence pairs a lower RSI high with a higher price high.
• Pivot confirmation uses subsequent bars, which can delay divergence signals.
• The material offers suggested uses but no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.