Relative Momentum Index Indicator for Automated Trading

The Relative Momentum Index (RMI) is an RSI-style oscillator that adds a momentum component to traditional RSI analysis. It can help traders define smoother momentum conditions and threshold rules for testing.

For automated trading, the useful part is the measurable condition: whether RMI crosses a threshold, stays above or below a midpoint, or confirms another trend or momentum filter.

• RMI Value: The main Relative Momentum Index oscillator output
• Momentum Component: RMI adds momentum context to RSI-style analysis
• Threshold Rules: Crosses above or below defined levels can become testable conditions
• Midpoint Context: A midpoint can be used as a trend or momentum filter if supported
• Automation Use: RMI conditions should be paired with trend filters and defined exits

Tradeworks indicator source: Relative Momentum Index was developed by Roger Altman and adds a momentum component to traditional RSI to reduce noisy oscillations between defined overbought and oversold levels.

Relative Momentum Index strategies should be converted into explicit threshold and midpoint comparisons. Avoid vague overbought or oversold descriptions unless the threshold is defined in the rule.

• Confirm the exact Relative Momentum Index output value and scale in the editor
• Use EMA or SMA for trend filtering
• Use RSI for secondary momentum confirmation
• Use ADX to filter weak-trend conditions
• Use ATR for volatility-aware exits
• Backtest threshold and trend-filter logic separately before combining filters