First Derivative RSI

First Derivative RSI is a forex indicator based on all familiar RSI, based on the first derivative of the price function. The indicator combines the functionality of an oscillator and a trend indicator. At the bottom of the chart, a part of the indicator similar to the RSI will be displayed, but only calculated as the first derivative of the price. On the chart itself, trend signals will be displayed by arrows, they are filtered by the algorithm and always alternate buy / sell. It also shows the number of profitable pips that the indicator can give at the specified interval (LimitCalcHistory). The indicator has a parameter (Spread), which deducts a part of the profit per spread for each signal.

To control the period of the RSI indicator, we will use the derivative of the price function at a certain time interval (Length). The derivative of a function is a concept of differential calculus that characterizes the rate of change of a function at a given point. It is defined as the limit of the ratio of the increment of a function to the increment of its argument when the increment of the argument tends to zero, if such a limit exists. The price function has a finite derivative (at the point under study), which means it is differentiable at this point. And we can work with her. After the mathematical transformation is made, we transform the result using the coefficient (DerivativeFirst) to a value acceptable for the RSI indicator, and that's it! It is also possible to set the minimum oscillator level using the (MinLengthFirst) parameter.

For those who are only interested in the trend version of the indicator, you can buy it here.

For those who are interested in a bot based on this indicator, you can buy it here.

The main thing to understand is that the indicator parameters must be selected for each instrument and each timeframe.