Description
This is the Figurelli RSI Auto, an enhanced version of the classic Welles Wilder RSI. It retains the same input parameters, so you can easily set it up using your preferred periods.
The magic lies in how this indicator calculates the gain value based on the minimum and maximum values within your chosen sample and period settings.
To give you a clearer picture, we’ve included two images comparing the original Welles Wilder RSI (in blue) with the Figurelli RSI (in red) using periods of 14 and 300.
Image 1: Example for Period 14
For period 14, the automatic gain adjustment was set to 1.4 (for EUR/USD on the H1 timeframe). Notice how the Figurelli RSI (red) shows minor variations as it approaches the 30 and 70 levels, making it relevant even for shorter periods.
Image 2: Example for Period 300
For period 300, the gain adjustment increased to 6.7 (for EUR/USD on the H1 timeframe). Here, you can see that the Welles Wilder RSI (blue) struggles to reach the 30 or 70 thresholds, while the Figurelli RSI (red) effectively utilizes the same period.
Just a quick note: the indicator's name reflects its Period and Gain values. For instance, Figurelli RSI Auto (300, 6.7) indicates a period of 300 and a gain of 6.7, as shown in the images above.
Happy trading!
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