Sharpened RSI turns with rainbow averages and a slow stochastic

Three jobs in one stack

Relative strength index is a 0-100 oscillator of recent up versus down closes, here remapped so the mid-band becomes a steep flip. The stochastic oscillator is a slower 0-100 oscillator of close location inside a lookback range, used as the medium-term veto. A moving average is a weighted or exponential average of price or of a remapped RSI, including nested rainbow stacks and a two-pass zero-lag construction.

The archive workflow first changes the price that RSI sees, then remaps the oscillator, then reads that remapped line against a slower stochastic. It does not treat any one of those steps as a complete rule set.

Inverse mapping of RSI

An inverse mapping of RSI first rescales the 0-100 oscillator into a roughly -5 to +5 input with x = 0.1 × (RSI − 50), then compresses that input into a -1 to +1 output so values beyond about 2 or −2 sit near the outer bounds. Inverse mapping is that bounded transform: outer RSI readings pile up near the edges.

After that mapping, original RSI readings above 60 occupy about the top 12% of the display range and readings below 40 occupy the bottom 12%, so the 40-to-60 transition plots as a sharp swing. The output can be stretched back to 0-100 with 50 × (y + 1).

Rainbow averages only pre-smooth the input

Closing prices are first passed through ten nested two-period weighted moving averages, then blended with weights 5, 4, 3, 2, 1, 1, 1, 1, 1, 1 over 20, so the RSI is computed on that rainbow-style smoother rather than on the raw close.

Separately, a nine-day weighted moving average applied to an inverse-mapped five-day RSI is shown as a smoother line whose rise through 27 and drop through 73 are treated as clearer long and short marks than the raw RSI.

A zero-lag pair before the mapping

A second exponential moving average of the remapped RSI is subtracted from the first and added back to form a zero-lag input to the inverse mapping. Both the RSI lookback and that exponential length default to 4. A zero-lag average is that pair of exponential averages of the same length whose difference is added back before the inverse mapping.

How the illustrated stack is read

The illustrated combination places a short-term RSI variant and a slow 50-period stochastic with three-period slowing above an inverse-mapped RSI that itself uses a four-period lookback and a four-period zero-lag exponential average.

In that stack, a climb of the inverse-mapped RSI through 12 is treated as a candidate long mark when the stochastic is lifting off a low, while a later break down through 88 is treated as an exit candidate when the stochastic is extended and turning down.

A later upturn of the inverse-mapped RSI is treated as a continuation add only when the slower stochastic is still rising and not yet in its extended zone, and when a short-term RSI variant prints a hidden divergence of higher price lows against lower oscillator lows.

What the remapped RSI is not asked to do

The remapped RSI is not presented as a standalone automatic rule set and is not expected to tag 0 and 100 on every swing. It is meant to mark short-term turning points that still need other oscillators.