RMI Pass Node
Relative Momentum Index — Series Input
Overview
The RMI Pass Node computes the Relative Momentum Index on a series input. RMI is a variant of RSI that compares the current price to the price n bars ago instead of the previous bar — adding a momentum lookback to the classic RSI calculation.
Developed by Roger Altman, RMI combines RSI's overbought/oversold framework with momentum's multi-bar comparison. A larger momentumPeriod makes RMI more sensitive to medium-term price swings, while period controls smoothing. Like RSI, RMI oscillates between 0 and 100 with 70/30 thresholds for overbought/oversold.
Formula
Parameters
| Parameter | Default | Description |
|---|---|---|
| period | 14 | Wilder smoothing period for average gain/loss |
| momentumPeriod | 3 | Number of bars back to compare for price change |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | { values, timestamps } | Price or any numeric series |
| values | Output | (number | null)[] | RMI values in [0, 100]; nulls during warm-up |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Overbought / Oversold with Momentum
RMI above 70 indicates overbought momentum over the momentumPeriod lookback. Below 30 indicates oversold momentum. These readings are more persistent than RSI in trending markets.
Swing Trading Entries
Use momentumPeriod=3 with period=14 for swing entries — RMI identifies short-to-medium momentum reversals that align well with 3–5 day swing trading setups.
Divergence Signals
Like RSI, RMI divergences from price highlight potential reversals. RMI divergences capture multi-bar momentum shifts that single-bar RSI may miss in volatile conditions.
Tips & Best Practices
RMI vs RSI
When momentumPeriod=1, RMI equals standard RSI. Increasing momentumPeriod to 3–5 makes RMI respond to multi-bar momentum, reducing noise from single-bar whipsaws.
Momentum Period Tradeoff
Larger momentumPeriod captures bigger swings but adds warm-up bars. For daily data, momentumPeriod=3 covers a 3-day momentum window; momentumPeriod=5 covers a trading week.
Combine with Trend Filter
Take RMI oversold signals only in uptrends (e.g., price above EMA200) and overbought signals only in downtrends — this dramatically reduces false signals and improves win rate.