Asymmetrical RSI lookbacks for divergence and candle confirmation

One averaging length for both sides

The standard relative strength index splits one-bar close changes into an up series and a down series, averages each side, forms relative strength as the up average divided by the down average, and rescales that ratio onto a 0-100 oscillator.

In that construction both sides share one averaging length. The length is independent of how many bars in the window closed higher versus lower.

A 14-bar reading is treated as oversold below 30 and overbought above 70. Those overbought-oversold bands mark stretched oscillator extremes rather than standalone trade instructions. A mismatch between oscillator direction and price direction is presented as a primary use of the indicator.

Four specified mismatches

Four mismatch cases are specified. A higher oscillator low against a lower price low, and a lower oscillator high against a higher price high, are opposite swing extremes at the end of a decline or an advance. That pairing is normal divergence, read as a possible reversal condition.

A lower oscillator low against a higher price low after a pullback in an advance, and a higher oscillator high against a lower price high after a bounce in a decline, are labeled reverse or hidden. Hidden divergence is read as a possible continuation condition after a pullback or bounce inside an existing trend.

Side-specific smoothing

The asymmetrical RSI keeps the same 0-100 scale. Inside the chosen window it counts up-closes that are equal to or higher than the prior close, sets the down count as the window length minus that count, and smooths each side with an exponential average of twice its own count minus 1 before forming relative strength and the oscillator.

That is side-specific smoothing. The two sides no longer share one window.

Extra band swings as a checklist

On the illustrated comparison the asymmetrical 14-bar line crossed 70 and 30 more often than the standard 14-bar line, while the broad up and down swings stayed similar. The write-up treats that as earlier short-horizon turning-point visibility at the cost of a more volatile oscillator.

On a daily index comparison the asymmetrical line printed regular divergences that were absent or less distinct on the standard 14-bar line: lower oscillator highs against rising price, and higher oscillator lows against a new price low after a drop below 30.

The same index series also showed additional hidden mismatches, including lower oscillator lows against higher price lows after a mid-advance correction, which were not visible on the standard line.

The modification is described as usable on more than one time frame, with the largest visual gap versus the standard oscillator on daily and minute charts. An editorial view is that the extra 30 and 70 swings belong on a checklist of candidate divergences, not as standalone instructions.

Candlestick confirmation

In a multi-month equity walk-through, extra asymmetrical divergences were read only with candlestick reversal structures: doji, tweezer tops, evening star, morning star, and an engulfing that began with a doji. Those readings were taken together with support, resistance, and trendline breaks.

One clustered setup was still deferred because nearby resistance left an unfavorable distance from a support-based stop to the first overhead barrier.