Background :
This indicator is an extended version of the Cuttlers' RSI adaptive EMA indicator (originally published here : Cuttlers RSI adaptive EMA )
Extension added :
In order to avoid some false signals (since the slope of the Cuttlers' RSI adaptive EMA can change too many times in ranging market) this version is adding floating levels as a criteria for trend change. You have an option to chose between two color changing modes :
- color change when outer levels are crossed
- color change when middle level (a sort of a "zero line") is crossed
Usage :
Use color change as signal. Some experimenting with levels is advised prior to usage in live trading