Relative Momentum Index Stock Screener

The Relative Momentum Index is a valuable tool for traders to identify overbought and oversold conditions and potential trend changes or pullbacks in a security . . . however, traders should have a well-defined trading plan to minimize the risk of false signals and overtrading

7 minutes

This post focuses on customizable Relative Momentum Index (RMI) factory scans, which can be edited, modified, or rewritten and then scanned using ChartAlert’s native stock screener or technical analysis scanner, namely the Basic Scanner and Advanced Scanner.

Display Relative Momentum Index (RMI) Values

Tags: relative momentum index formula, relative momentum index stock screener, relative momentum index strategy

List symbols
Add Column Relative Momentum Index(20,5) as RMI
Apply to NSE

This scan computes and displays the Relative Momentum Index (RMI) values for all symbols using a 20-period (with 5-period Momentum) calculation. By default, the RMI is calculated based on the “Close” price.

OPTION 1

Display the values of the Relative Momentum Index (RMI) using different periods as shown below. Please note that the abbreviation “RMI” has been used instead of “Relative Momentum Index”.

List symbols
Add Column RMI(20,5) as RMI20_5
Add Column RMI(14,3) as RMI14_3
Apply to NSE

OPTION 2

To scan for RMI values for the most recent 3 bars:

List symbols
Add Column RMI(20,5) as RMI
Add Column RMI(20,5) a bar ago as RMI_1
Add Column RMI(20,5) 2 bars ago as RMI_2
Apply to NSE

OPTION 3

By default, the RMI is calculated based on the “Close” data. However, if you wish to calculate RMI using a different data array, such as the 14-period Exponential Moving Average (EMA) of the “Close” values, you can modify the script as follows. This modification allows the RMI to be computed using both the “Close” values and the 14-period EMA of the “Close” values.

List symbols
Add Column RMI(20,5) as RMI
Add Column RMI(20,5,EMA(14)) as RMI_of_EMA
Apply to NSE

Relative Momentum Index (RMI) in Overbought Zone

Tags: relative momentum index crossover below 70, relative momentum index overbought and declining screener, relative momentum index overbought and decreasing screener, relative momentum index overbought screener, relative momentum index overbought stock screener, stock screener relative momentum index below 70

List symbols where RMI(20,5) has been above 70 for the last 3 bars
Add Column RMI(20,5) as RMI
Add Column RMI(20,5) 1 bar ago as RMI20_1
Add Column RMI(20,5) 2 bars ago as RMI20_2
Apply to NSE

This scan is designed to identify NSE symbols that meet specific criteria. It examines the 20-period RMI with a 5-period momentum and checks if it has consistently remained above 70 for the past 3 bars. The scan report will also include the values of the 20-period RMI with 5-period momentum for the last 3 bars.

OPTION 1

If you want to modify the scan to search for symbols where the RMI is solely in the Overbought Zone, you can make the following changes to the original scan:

List symbols where RMI(20,5) > 70
Add Column RMI(20,5) as RMI
Add Column RMI(20,5) 1 bar ago as RMI20_1
Add Column RMI(20,5) 2 bars ago as RMI20_2
Apply to NSE

Relative Momentum Index (RMI) in Oversold Zone

Tags: relative momentum index crossover above 30, relative momentum index overold screener, relative momentum index oversold and improving screener, relative momentum index oversold and increasing screener, relative momentum index oversold stock screener, stock screener relative momentum index above 30

List symbols where RMI(20,5) has been below 30 for the last 3 bars
Add Column RMI(20,5) as RMI
Add Column RMI(20,5) 1 bar ago as RMI20_1
Add Column RMI(20,5) 2 bars ago as RMI20_2
Apply to NSE

This scan searches for NSE symbols based on specific criteria. It examines the 20-period RMI with a 5-period momentum, looking for instances where it has stayed below 30 for the past 3 bars. The resulting scan report includes the RMI values for the last 3 bars.

OPTION 1

If you prefer to focus on symbols where the RMI is solely in the Oversold Zone, you can modify the original scan as follows:

List symbols where RMI(20,5) < 30
Add Column RMI(20,5) as RMI
Add Column RMI(20,5) 1 bar ago as RMI20_1
Add Column RMI(20,5) 2 bars ago as RMI20_2
Apply to NSE

Overbought with a Declining Relative Momentum Index (RMI)

Tags: relative momentum index crossover below 70, relative momentum index overbought and declining screener, relative momentum index overbought and decreasing screener, relative momentum index overbought screener, relative momentum index overbought stock screener, stock screener relative momentum index below 70

List symbols where RMI(20,5) has crossed below 70 after remaining above for 3 bars
Add Column RMI(20,5) as RMI14
Apply to NSE

This scan searches for specific symbols that meet the following criteria: The 20-period RMI, along with a 5-period momentum, has recently crossed below the 70 level. Prior to this drop, the RMI had been consistently above the 70 level for a duration of 3 bars. The scan report will also include the displayed values of the 20-period RMI, along with a 5-period momentum.

Oversold with an Improving Relative Momentum Index (RMI)

Tags: relative momentum index crossover above 30, relative momentum index overold screener, relative momentum index oversold and improving screener, relative momentum index oversold and increasing screener, relative momentum index oversold stock screener, stock screener relative momentum index above 30

List symbols where RMI(20,5) has crossed above 30 after remaining below for 3 bars
Add Column RMI(20,5) as RMI14
Apply to NSE

This scan examines symbols to identify a specific pattern. It focuses on the RMI with a 20-period calculation and a 5-period momentum component. The scan searches for instances where the RMI has recently crossed above the 30 level after staying below it for 3 bars. The results of this scan include a report that displays the 20-period (with 5-period momentum) RMI.

Relative Momentum Index Moving Average Bullish Crossover

Tags: relative momentum index moving average crossover bullish

List symbols where RMI(20,5) has crossed above EMA(3,RMI(20,5)) after remaining below for 3 bars
Add Column RMI(20,5) as RMI20
Add Column EMA(3,RMI(20,5)) as EMA3_RMI20
Apply to NSE

This scan searches for specific patterns in the market where a certain indicator, called the 20-period RMI with 5-period momentum, has recently crossed above a shorter-term moving average called the 3-period Exponential Moving Average (EMA). This crossover occurs after the RMI has remained below the EMA for 3 consecutive bars. The scan report will also provide the values of the 20-period RMI and the moving average.

OPTION 1

If you want to use a different type of moving average, such as the Simple Moving Average (SMA), you can easily make that change. In the example provided below, we have replaced EMA with SMA since it uses the Simple Moving Average. Additionally, this scan focuses solely on identifying the crossover event without considering the position of the indicator before the crossover.

List symbols where RMI(20,5) has crossed above SMA(3,RMI(20,5))
Add Column RMI(20,5) as RMI20
Add Column SMA(3,RMI(20,5)) as SMA_RMI20
Apply to NSE

Relative Momentum Index Moving Average Bearish Crossover

Tags: relative momentum index moving average crossover bearish

List symbols where RMI(20,5) has crossed below EMA(3,RMI(20,5)) after remaining above for 3 bars
Add Column RMI(20,5) as RMI20
Add Column EMA(3,RMI(20,5)) as EMA3_RMI20
Apply to NSE

This scan is designed to identify specific patterns in the market. It searches for symbols where the 20-period RMI, along with its 5-period momentum, has recently crossed below a 3-period Exponential Moving Average (EMA) of the indicator. This crossover occurs after the RMI has remained above the EMA for 3 consecutive bars. The values of the 20-period RMI and the Moving Average are also included in the scan report.

OPTION 1

If you want to use a different type of Moving Average, such as a Simple Moving Average (SMA), you can easily make that change by replacing “EMA” with “SMA” in the scan parameters. In the example provided below, we have already replaced “EMA” with “SMA” to demonstrate the use of a Simple Moving Average. It’s important to note that this scan focuses solely on identifying crossovers, regardless of the RMI’s status prior to the crossover.

List symbols where RMI(20,5) has crossed below SMA(3,RMI(20,5))
Add Column RMI(20,5) as RMI20
Add Column SMA(3,RMI(20,5)) as SMA_RMI20
Apply to NSE

For comprehensive insights into the Relative Momentum Index (RMI), including its calculation methodology, effective utilization in trading, applicability to both trading and investing purposes, as well as an exploration of its advantages and limitations as an indicator, click here.

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