RSI For Loop: Advanced RSI Smoothing with 9 Moving Average Types

The Relative Strength Index (RSI) remains one of the most widely used momentum indicators, but traditional implementations often generate excessive signals during ranging markets or delayed signals during trending conditions. The RSI For Loop indicator solves this fundamental challenge by incorporating nine different moving average types for signal smoothing, hysteresis-based state management, and dual MA comparison for crossover signals.

What is RSI For Loop?

RSI For Loop is an advanced TradingView indicator that transforms the classic RSI oscillator into a comprehensive momentum analysis system. Unlike standard RSI implementations that offer limited customization, this indicator provides:

• Nine moving average types for smoothing (SMA, EMA, WMA, HMA, RMA, LSMA, DEMA, TEMA, VIDYA)
• Dual MA comparison mode for crossover-based signals
• Hysteresis logic preventing signal oscillation
• Adaptive VIDYA smoothing responding to volatility

The indicator addresses the persistent tradeoff between RSI responsiveness and reliability by allowing traders to customize smoothing behavior for their specific market conditions.

Understanding RSI Smoothing Options

Why Smooth RSI?

Raw RSI values can be noisy, generating false signals during choppy market conditions. Smoothing applies a moving average to the RSI values, filtering high-frequency noise while preserving meaningful momentum information.

The Nine Moving Average Types

Simple Moving Average (SMA): Equal weighting to all values within the smoothing window. Best for general-purpose noise reduction.

Exponential Moving Average (EMA): Emphasizes recent values with exponentially decreasing weights. More responsive than SMA to recent momentum changes.

Weighted Moving Average (WMA): Linearly decreasing weights favoring recent values. Middle ground between SMA and EMA responsiveness.

Hull Moving Average (HMA): Combines weighted averages at different periods to minimize lag while maintaining smoothness. Excellent balance between responsiveness and noise reduction.

Running Moving Average (RMA): Modified exponential smoothing with minimal lag. Particularly suitable for momentum indicators.

Least Squares Moving Average (LSMA): Linear regression-based smoothing with excellent trend-following characteristics.

Double Exponential Moving Average (DEMA): Two-layer exponential smoothing with reduced lag compared to standard EMA.

Triple Exponential Moving Average (TEMA): Three-layer exponential smoothing providing the most responsive exponential smoothing.

Variable Index Dynamic Average (VIDYA): Adaptive smoothing that automatically adjusts responsiveness based on market volatility. More responsive during high volatility, more stable during low volatility.

Hysteresis-Based State Management

Traditional RSI signals trigger when values cross fixed thresholds (typically 70/30 or 50). This creates problems when RSI oscillates around threshold levels, generating excessive signals.

How Hysteresis Works

The indicator maintains a state variable (bullish, bearish, or neutral) that transitions only when RSI crosses the opposite threshold:

• Bullish state: Activated when RSI rises above upper threshold (default 55), remains until RSI falls below lower threshold (default 45)
• Bearish state: Activated when RSI falls below lower threshold, remains until RSI rises above upper threshold
• Neutral state: RSI between thresholds, maintains previous state

This creates a "dead zone" between thresholds where state remains unchanged, filtering minor fluctuations that would generate false signals.

Dual Moving Average Comparison Mode

When enabled, the indicator switches from threshold-based signals to crossover-based signals by comparing two independently smoothed RSI series.

Crossover Signal Generation

• Bullish signal: First smoothed RSI crosses above second smoothed RSI
• Bearish signal: First smoothed RSI crosses below second smoothed RSI

This approach eliminates reliance on fixed thresholds, generating signals based on relative momentum changes that adapt naturally to varying market conditions.

Configuring Dual MA Mode

Typical configurations use different smoothing characteristics for each layer:

• Fast/slow combination: Shorter length for first MA, longer for second
• Different MA types: More responsive type for first MA, more stable for second

Practical Trading Applications

Day Trading with RSI For Loop

1. Use shorter RSI length (7-9) for faster signals
2. Apply EMA or HMA smoothing for responsiveness
3. Enable dual MA mode with fast/slow configuration
4. Set tighter hysteresis thresholds (52/48)

Swing Trading Configuration

1. Use standard RSI length (14)
2. Apply SMA or RMA smoothing for stability
3. Use hysteresis mode with wider thresholds (55/45)
4. Monitor extreme levels (70/30) for reversal zones

Volatile Markets (Crypto, High-Beta Stocks)

1. Enable VIDYA smoothing for adaptive behavior
2. Use longer smoothing lengths to filter noise
3. Widen hysteresis thresholds to prevent whipsaw
4. Consider dual MA mode for relative signals

Signal Interpretation

Bullish Signals

In hysteresis mode, bullish signals occur when the state transitions from non-bullish to bullish, indicating momentum has shifted decisively to the upside. In dual MA mode, bullish signals occur on crossovers.

Bearish Signals

Bearish signals indicate momentum has shifted to the downside. The one-time trigger logic ensures signals fire only once per transition, preventing signal spam.

Color Coding

• Green: Bullish state/momentum
• Red: Bearish state/momentum
• Gray: Neutral state (hysteresis mode only)

Key Takeaways

• Nine moving average types provide comprehensive smoothing customization for any market condition
• Hysteresis logic prevents whipsaw signals during ranging markets
• Dual MA crossovers offer threshold-free signal generation that adapts to volatility
• VIDYA adaptive smoothing automatically adjusts to market regime changes
• Visual entry markers on price chart enable quick signal identification
• One-time trigger logic ensures clean, non-repetitive signal generation
• Configurable thresholds allow fine-tuning for different trading styles

FAQ

What's the best moving average type for RSI smoothing?
It depends on your trading style. EMA and HMA work well for responsive signals, while SMA and RMA provide more stable smoothing. VIDYA is excellent for markets with varying volatility.

Should I use hysteresis mode or dual MA mode?
Hysteresis mode works well when you want threshold-based signals with noise filtering. Dual MA mode is better when you prefer relative momentum comparison without fixed thresholds.

What RSI length should I use?
Standard 14-period works for most applications. Use shorter lengths (7-9) for day trading, longer lengths (21-28) for swing trading.

How do I reduce false signals?
Increase smoothing length, widen hysteresis thresholds, or switch to dual MA mode with appropriate fast/slow configuration.