RSI Run‑Length by ATTA

RSI Run‑Length by ATTA – The Next Generation of RSI

The RSI Run‑Length by ATTA indicator was developed to quantify not only the magnitude of price movements but also the continuity with which they occur. Instead of relying on point‑by‑point averages of gains and losses, it counts each sequence of consecutive gains (up‑run) and each sequence of consecutive losses (down‑run), applies Wilder’s RMA smoothing to these counts, and then computes the classic RSI formula on their ratio.

This approach significantly reduces market noise by giving greater weight to sustained trends, while simultaneously reducing the lag inherent in traditional methods. Rather than waiting for signals triggered by isolated fluctuations, RSI Run‑Length by ATTA detects turning points at the earliest stages of movement streaks and maintains precise, timely responsiveness.

Core Principles:

Run‑Length Counting: Measures trend depth without distortion from isolated spikes.

Wilder’s RMA on Counts: Provides statistical smoothing to suppress excessive volatility.

Classic RSI Formula: Applies the familiar RSI calculation to the smoothed run‑length ratio.

This mechanism enables early identification of momentum shifts and the construction of strategies based on stable sequences rather than sporadic gains. The simplicity of a single parameter (run‑length period – default 14) and the logical sequence of counting, smoothing, and ratio calculation make the tool both transparent and intuitive for technical traders and quantitative analysts alike.

Usage Instructions:

Select the run‑length period (commonly 14 bars).

Set overbought/oversold thresholds (recommended 70/30).

Overlay with complementary indicators (classic RSI, MACD, etc.) for confirmation.

I invite traders and analysts to incorporate RSI Run‑Length by ATTA into their indicator libraries to gain deeper, more actionable insights into price momentum.