RSI Momentum Bands serve a purpose to find best RSI momentum for entering a trade.
Indicator is built simply: 1st RSI MA is smoothed RSI by little period, 2nd RSI MA is smoothed RSI by a bigger period. Then we calculate standard deviation from the 2nd MA and make upper and lower band.
The rules for trades are simple:
When RSI is above higher band - Buy;
When RSI is below lower band - Sell.
The indicator is for educational purposes only to present trades a momentum bands concepts, widely used across professionals.
Hope you will find it helpful. Take your profits! - Tarasenko Fyodor
The indicator is clear and accurate.