Rsi centaurRSI centaur is a visual RSI-based oscillator designed to make momentum extremes, mean reversion zones, midline shifts, and confirmed divergences easier to read on one clean panel.
The indicator uses an adaptive RSI calculation based on Gaussian-weighted price changes. Instead of treating every past bar with the same importance, the RSI core applies a smooth weighting curve to recent gains and losses. This gives the oscillator a slightly different feel from a standard RSI while keeping the logic familiar for traders who already use momentum tools.
A signal line can be enabled to help read short-term smoothing. The panel also includes multiple dashed reference levels at 90, 85, 80, 75, 70, 50, 30, 25, 20, 15, and 10. These levels are not meant to be automatic buy or sell zones by themselves. They are visual areas where momentum may be extended, exhausted, or returning toward balance.
Main features:
- Adaptive Gaussian-weighted RSI oscillator
- Optional RSI-based signal line
- Configurable overbought and oversold guide levels
- Entry circles when RSI enters extreme zones
- Exit circles when RSI leaves extreme zones
- Midline dots when RSI crosses the 50 level
- Confirmed bullish and bearish RSI divergences
- Classic, hidden, and exaggerated divergence modes
- Alerts for entries, exits, midline crosses, divergences, and any signal
How to read it:
When RSI moves above 70, momentum is usually strong on the upside. If it continues into 75, 80, 85, or 90, the market is becoming more extended. A circle appearing when RSI comes back under one of these upper levels can be used as a warning that upside momentum is cooling.
When RSI moves below 30, downside momentum is usually strong. If it continues into 25, 20, 15, or 10, the market is becoming more extended to the downside. A circle appearing when RSI comes back above one of these lower levels can be used as a warning that bearish pressure is weakening.
The 50 line is used as a simple momentum balance level. Crosses above 50 suggest that the oscillator is moving back into bullish momentum territory. Crosses below 50 suggest that the oscillator is moving back into bearish momentum territory.
Beginner example 1:
Price has been falling and the RSI drops below 20. This does not automatically mean the market should be bought. A more conservative read is to wait until RSI crosses back above 20 or 25, then check whether price is also reacting from a support zone, previous low, or other market structure level.
Beginner example 2:
Price makes a new high, but the RSI makes a lower high. If a bearish divergence is confirmed, it can warn that the upward move is losing momentum. This is not a sell signal by itself, but it can help traders become more cautious with long positions or look for confirmation from price action.
Beginner example 3:
RSI crosses above 50 after spending time below it. This can show that momentum is shifting back toward the upside. If price is also above a key moving average or breaking a local structure level, the midline cross may support a bullish scenario.
About divergences:
Divergences are based on confirmed RSI pivots. Because pivots require confirmation, divergence labels appear only after the confirmation bars have closed. This makes them cleaner, but it also means they are not intended to mark the exact top or bottom in real time.
Suggested use:
Centaur RSI is best used as a momentum and context tool. It can help identify overextended conditions, momentum recovery, and possible divergence areas. It should be combined with price structure, trend direction, volume, or support and resistance analysis before making trading decisions.
Limitations:
No RSI tool can predict future price movement. Strong trends can keep RSI overbought or oversold for a long time. Divergences can also fail during high momentum markets. The indicator is designed to provide visual context, not guaranteed entries or exits.
Pine Script®指标
