RSI Pass Node

Relative Strength Index — Series Input

MomentumOscillatorPass

Overview

The RSI Pass Node computes the Relative Strength Index on a series input using Wilder smoothing. RSI measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions on a [0, 100] scale.

Developed by J. Welles Wilder Jr. in 1978, RSI remains one of the most widely used technical indicators. As a Pass node, it accepts any numeric series — allowing RSI to be applied to other indicator outputs, custom price composites, or derived series rather than raw OHLCV price data.

Formula

change[i] = series[i] − series[i−1]
AvgGain = Wilder EMA of max(change, 0) over period
AvgLoss = Wilder EMA of max(−change, 0) over period
RS = AvgGain / AvgLoss
RSI = 100 − 100 / (1 + RS)
Wilder smoothing uses α = 1/period. Output range: [0, 100]. Warm-up: period bars.

Parameters

ParameterDefaultDescription
period14Wilder smoothing period for average gain and loss

Inputs & Outputs

SlotDirectionTypeDescription
inputInput{ values, timestamps }Any numeric series (price, volume, another indicator output)
valuesOutput(number | null)[]RSI values in [0, 100]; nulls during warm-up
timestampsOutputnumber[]Unix timestamps aligned to input

Use Cases

RSI of Another Indicator

Chain RSI Pass after another indicator output — e.g., RSI of volume creates a volume momentum oscillator; RSI of ATR measures volatility momentum; RSI of ROC adds a second normalization layer.

Classic Overbought / Oversold

Apply to close price: readings above 70 signal overbought; below 30 signal oversold. In trending markets, use 80/20 thresholds; in ranging markets, 70/30 works better. Always confirm with the trend context.

Stochastic RSI Foundation

Feed RSI Pass output into a min-max normalization node (or Stochastic RSI Pass) to create the Stochastic RSI — RSI applied to itself, giving a more sensitive oscillator for short-term trading.

Tips & Best Practices

Wilder Smoothing vs EMA

This node uses Wilder's original smoothing (α = 1/period), not a standard EMA. A 14-period Wilder RSI is slower than a 14-period EMA-based RSI. This is the correct, standard implementation.

Divergence Beats Threshold

RSI divergences are more reliable signals than simple overbought/oversold threshold crossings. Price making new highs while RSI makes lower highs is a powerful bearish warning that precedes many significant corrections.

Midline as Trend Filter

RSI consistently above 50 confirms a bullish trend; consistently below 50 confirms a bearish trend. Use the 50-level as a trend filter — take long signals only when RSI is above 50 and short signals only below 50.

Related Indicators