RS Filtered RSI

RS Filtered RSI (RSF RSI) | MisinkoMaster

The RS Filtered RSI is an advanced RSI-based indicator that enhances the traditional RSI by applying a custom filtering technique using Fourier transform principles. This reduces noise and improves the clarity of signals, helping traders better identify trend direction and potential reversals.

Key Features

Combines classic RSI calculation with Fourier-based filtering for noise reduction

Dynamically adapts to price momentum using Relative Strength filtering

Provides clear bullish and bearish trend signals with customizable thresholds

Includes overbought and oversold levels for better entry and exit timing

Plots divergence histogram to highlight momentum changes

Candle coloring aligns with trend direction for intuitive reading

Highly configurable via inputs for RSI length, filter length, Fourier length, and thresholds

How It Works

Calculates a standard RSI on the selected price source over the chosen length.

Applies a Discrete Fourier Transform (DFT) on recent price data to extract dominant frequency components and filter noise (code adapted from BackQuant).

Uses Fourier magnitudes combined with RSI values to build a filter that strengthens the RSI signal and filters weak moves.

Applies upper and lower thresholds on the filtered RSI to define bullish and bearish trends.

Visualizes trend signals, divergence, and overbought/oversold zones with colored plots and candles.

Inputs Overview

Length — RSI calculation period

Source — Price input (default: close)

Filter Length — Length for Relative Strength filter

Fourier Length — Number of bars used for Fourier transform

Upper Threshold — Level above which bullish trend is signaled

Lower Threshold — Level below which bearish trend is signaled

Overbought — RSI level considered overbought

Oversold — RSI level considered oversold

Usage Notes

Best suited for traders who want a smoother, less noisy RSI signal especially in volatile markets.

Can be combined with other indicators or price action for better confirmation.

Adjust Fourier length and filter parameters to balance smoothness and responsiveness.

Use divergence histogram to spot momentum shifts early.

Candle coloring makes trend identification more intuitive.

Not a standalone trading signal — always backtest and manage risk accordingly.

Shout Out

Special thanks to BackQuant for the Fourier transform code that inspired the filtering technique in this indicator.

Disclaimer

This indicator is for educational use only and does not constitute financial advice. Trading involves risk. Please do your own research and trade responsibly.