Liquidity-Weighted RSI

LW-RSI scales the classic RSI by relative volume to highlight when momentum happens under unusually high participation.

Formula:
LW-RSI = RSI × (Current Volume / 20-bar Avg Volume)
• The 0 → Threshold band marks the “normal” zone.
• Values above Threshold indicate an abnormal liquidity/participation regime (not a buy/sell signal by itself).
• The orange line is the moving average of LW-RSI itself to show whether participation spikes are persistent or just noise.

LW-RSI does not predict direction. Use it as a context/confirmation tool alongside structure, VWAP, and volume profile.