Pico RSI KF

PICO RSI KF — RSI with Kalman Filtering

The PICO RSI KF indicator was designed especially for scalpers and day traders who need to make fast and confident trading decisions.
It applies a 1D Kalman Filter to a volume-weighted RSI, creating a smooth and responsive signal that highlights the true turning points in market momentum.

Unlike traditional oscillators, PICO RSI KF is not meant to act alone.
It is a complementary tool, ideal for confirming signals from other systems or strategies such as Wyckoff, Elliott Wave, or custom algorithms.

When a colored trigger appears, it suggests the probable end of one wave and the beginning of another — a potential entry point for those who act precisely at the market’s rhythm.

Colors are intentionally subtle and professional, focusing attention only on real trading opportunities instead of unnecessary visual noise.

Technical Notes

The PICO RSI KF uses a discrete Kalman filter to smooth RSI variations in real time:

• RSI_Window defines the tick-based window used for RSI computation.

• Q (Process Variance) controls the filter’s adaptability — higher values make it react faster but increase noise.

• R (Measurement Variance) defines the noise level assumed in RSI readings — smaller values create a smoother but slower response.

For most assets, Q = 0.002 and R = 0.0005 provide an excellent balance between reactivity and stability, but users can fine-tune them to match different market rhythms or volatility regimes.