Volume-Weighted RSI Histogram and Dynamic Thresholds

Summary

This indicator transforms the Relative Strength Index into a histogram by centering RSI around its midpoint and scaling the result by volume. The displayed value therefore combines RSI direction and distance from neutral with trading volume, rather than showing RSI alone.

Its overbought and oversold boundaries are transformed in the same way, so they vary with volume instead of remaining fixed. The description gives example input thresholds and says breakout indications are associated with crossing the resulting levels. It does not provide trading rules beyond those crossings, chart evidence, performance results, or guidance on volume data and parameter calibration. The histogram is an indicator concept, not evidence that its signals are profitable.

Key ideas

• The indicator centers RSI at 50 and multiplies the deviation by volume.
• Its overbought and oversold thresholds are adjusted by the same volume scaling, making them variable.
• Crossing the transformed levels is used to indicate breakouts, but the description gives no performance evidence.

Tags

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