The Volensy RSI RMI with Info Panel indicator creates a composite momentum reading by combining the Relative Strength Index (RSI) and the Money Flow Index (MFI) into a single Relative Momentum Index (RMI) value. This blended approach merges price-based momentum with volume-backed money flow data, then applies Range-Weighted Moving Average smoothing to produce a clean, actionable momentum signal. With bullish and bearish thresholds at 66 and 33 respectively, the indicator clearly delineates momentum zones and generates LONG and SHORT signals when the composite RMI crosses these boundaries with volume confirmation.

Overview

Standard RSI measures momentum using price changes alone, while MFI measures momentum using price and volume together. Each has blind spots: RSI can signal momentum in low-volume environments where the move may lack conviction, and MFI can be skewed by volume anomalies that do not reflect genuine directional pressure.

The RSI RMI indicator solves this by combining both into a single composite value. The RMI gives equal weight to price momentum (via RSI) and volume-backed flow (via MFI), creating a more robust momentum reading that is harder to fool. The Range-Weighted Moving Average (RWMA) smoothing further refines the output, giving more weight to readings that occur during significant price ranges and less weight to readings during narrow, indecisive candles.

This indicator is best suited for:

• Momentum traders who want a comprehensive momentum view beyond just price
• Traders who value volume confirmation as part of their signal criteria
• Those trading across multiple asset classes who need a versatile momentum tool

How It Works

Composite RMI Calculation

The indicator calculates two independent momentum readings and combines them:

1. RSI(14) — Standard 14-period Relative Strength Index calculated from closing prices. Measures the ratio of upward price movements to downward price movements over the lookback period.

1. MFI(14) — Standard 14-period Money Flow Index calculated from typical price multiplied by volume. Measures the ratio of money flowing into the asset versus money flowing out.

1. RMI Composite — The RSI and MFI values are blended into a single composite reading. This composite inherits the strengths of both: directional price sensitivity from RSI and volume validation from MFI.

The resulting RMI value oscillates between 0 and 100, just like its component indicators, making it intuitive to read for anyone familiar with oscillator-based analysis.

Range-Weighted Moving Average Smoothing

Raw composite values can still be noisy, especially on shorter timeframes. The indicator applies Range-Weighted Moving Average (RWMA) smoothing to address this:

• Range weighting gives more influence to candles with larger high-to-low ranges. These are candles where meaningful price action occurred.
• Less influence is given to narrow-range candles (doji patterns, inside bars) where the market was indecisive.

This weighting system means the smoothed RMI responds more to candles that matter and less to candles that represent noise, producing a cleaner momentum curve.

Momentum Threshold Zones

The smoothed RMI is divided into three zones by two threshold levels:

| Zone | RMI Range | Meaning |
|——|———–|———|
| Bullish | Above 66 | Strong upward momentum with volume confirmation |
| Neutral | 33 to 66 | Indecisive or transitional momentum |
| Bearish | Below 33 | Strong downward momentum with volume confirmation |

Signals are generated when the RMI crosses these thresholds:

• LONG Signal — RMI crosses above 66, entering the bullish zone. This confirms that both price momentum and money flow support an upward move.
• SHORT Signal — RMI crosses below 33, entering the bearish zone. This confirms that both price momentum and money flow support a downward move.

The neutral zone (33 to 66) acts as a buffer that prevents signals during ambiguous conditions. The RMI must show decisive momentum in either direction before a signal is issued.

Volume-Backed Signal Confirmation

As a final filter, the indicator checks that volume at the signal candle is above its recent average. This ensures the threshold crossover is occurring during an active market session, not during a low-volume drift that could easily reverse.

Key Features

• Composite RSI + MFI momentum index for dual-source momentum analysis
• Range-Weighted Moving Average smoothing that prioritizes meaningful price action
• Three-zone momentum system: Bullish (above 66), Neutral (33-66), Bearish (below 33)
• Volume-backed signal confirmation at threshold crossovers
• Three-tier Take Profit: TP1 at 0.5%, TP2 at 1.0%, TP3 at 1.5%
• Fixed 2% Stop Loss for defined risk
• Real-time info panel with composite RMI value, PnL, and success rate
• LONG and SHORT signal labels with bar coloring
• Configurable alert system for all signal events
• Works on all markets and all recommended timeframes

Configuration / Settings

Input Parameters

| Parameter | Default | Description |
|———–|———|————-|
| RSI Period | 14 | Lookback period for RSI calculation. Adjust for sensitivity: lower values are more reactive, higher values are smoother. |
| MFI Period | 14 | Lookback period for MFI calculation. Keeping RSI and MFI periods aligned ensures the composite is balanced. |
| RWMA Length | 10 | The smoothing length for the Range-Weighted Moving Average. Higher values produce a smoother RMI curve with delayed signals; lower values are more responsive. |
| Bullish Threshold | 66 | The RMI level above which a LONG signal can be generated. Increasing this value requires stronger momentum for a signal. |
| Bearish Threshold | 33 | The RMI level below which a SHORT signal can be generated. Decreasing this value requires stronger bearish momentum for a signal. |
| Volume Confirmation | On | Toggle whether volume must exceed the recent average for a signal to be validated. |

Style Settings

| Setting | Description |
|———|————-|
| Show Momentum Zones | Toggle colored background zones on the oscillator panel (green for bullish zone, red for bearish zone, gray for neutral). |
| Bar Coloring | Toggle candlestick color changes based on current momentum zone. |
| Signal Labels | Toggle LONG/SHORT label visibility on the main chart. |
| Info Panel Position | Select the chart corner for info panel display. |

Trading Signals

LONG Signals

A green LONG label appears when:

1. The composite RMI crosses above 66 (entering the bullish zone)
2. Volume at the signal candle exceeds the recent average
3. Both price momentum (RSI) and money flow (MFI) are in agreement on upward direction

What to do: Consider entering a long position. The signal indicates strong, volume-confirmed bullish momentum. Target TP1 (0.5%), TP2 (1.0%), and TP3 (1.5%) above entry with a 2% Stop Loss below.

SHORT Signals

A red SHORT label appears when:

1. The composite RMI crosses below 33 (entering the bearish zone)
2. Volume at the signal candle exceeds the recent average
3. Both price momentum and money flow confirm the downward direction

What to do: Consider entering a short position. Target TP levels below entry with a 2% Stop Loss above.

Momentum Zone Transitions

Beyond the entry signals, the momentum zones provide ongoing context:

• When the chart background (or oscillator zone) turns green, bullish momentum is dominant. Favor LONG positions and be cautious with shorts.
• When the zone is red, bearish momentum is dominant. Favor SHORT positions and be cautious with longs.
• When the zone is neutral (gray), momentum is unclear. This is often a good time to wait for a clearer signal rather than forcing a trade.

Best Practices

Recommended Markets

• Cryptocurrency: Highly effective on BTC, ETH, and major altcoins where volume data is abundant and momentum swings are pronounced.
• Forex: Works well on major pairs. Note that forex volume on TradingView is tick-based, so MFI may behave differently than on exchange-traded assets. The composite approach mitigates this limitation.
• Stocks: Strong on liquid stocks with reliable volume data. Particularly effective on momentum stocks and ETFs.
• Commodities: Gold and energy commodities with clear momentum phases.

Recommended Timeframes

• 15-minute: Active trading with frequent zone transitions. Good for capturing short-term momentum bursts.
• 1-hour: Balanced approach with clear zone definition. Recommended starting point.
• 4-hour: Strong momentum readings with fewer transitions. Ideal for swing traders.
• Daily: High-conviction zone signals for position trading.

Tips for Best Results

1. Respect the neutral zone. When RMI is between 33 and 66, the market is undecided. Forcing trades in this zone often leads to whipsaws. Wait for a clear threshold crossing.
2. Look for zone duration. A signal that keeps the RMI in the bullish zone for multiple candles indicates sustained momentum. Quick reversals back into the neutral zone suggest the signal may be weak.
3. Combine with price structure. An RMI LONG signal at a key support level is stronger than one occurring in the middle of a trading range.
4. Use on multiple timeframes. Check the higher timeframe RMI zone to confirm the overall momentum direction, then use the lower timeframe for entry timing. For example, if the daily RMI is in the bullish zone, focus on LONG signals from the 1-hour RMI.
5. Monitor the info panel success rate over at least 50 signals before drawing conclusions about the indicator’s performance on a specific asset.

*See also: Indicators Overview*
*See also: Understanding the TP/SL System*
*See also: Using the Info Panel*
*See also: QQE MOD Indicator* — Another RSI-derived momentum indicator with a different methodology