TMA Legacy: RSI Divergence, Smoothed RSI, and Momentum Views

Summary

TMA-Legacy is an indicator that offers three views of RSI: standard RSI divergence, a smoothed RSI, and an RSI-based momentum composite. The standard view colors RSI according to its recent direction and compares oscillator pivots with price pivots to flag regular and hidden bullish or bearish divergences. The smoothed view adds a slower RSI and moving-average line, with directional coloring informed by ADX and directional movement. The momentum view combines normalized RSI, price momentum, and stochastic RSI, then compares the composite with a smoothed average.

The script includes alerts for divergence and enters long or short positions on hidden bullish or hidden bearish signals. Its authors describe it as a community recreation of an earlier indicator and caution that changed calculations may produce different behavior from the original. The supplied BTC futures settings are not accompanied by performance results, and the document does not establish that divergence signals predict profitable reversals. Pivot-based signals also depend on lookback settings and may appear only after subsequent bars confirm a pivot.

Key ideas

• The indicator provides standard, smoothed, and momentum-oriented RSI views.
• Regular divergence compares price and oscillator pivot directions.
• The smoothed view uses ADX and directional movement to color RSI by trend conditions.
• Hidden divergence triggers the script's long and short entries.
• The recreation may differ from the original, and no performance results are supplied.

Tags

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