RSI, Moving Average, Weighted Moving Average Indicator

This indicator combines RSI, EMA, and WMA to pinpoint market bottoms and tops across stocks, futures, and Nifty. Learn how to identify reversal signals on daily

Published · Updated · Methodology: Technical Indicators

Part of: EMA Strategies

  • Methodology: Technical Indicators
  • Content type: indicator
  • Timeframes: Monthly, Weekly, Daily
  • Markets: Stocks, Futures, Nifty

Indicators used

  • RSI
  • EMA
  • WMA (Weighted Moving Average)

Source video

Decoded from: I Used 1000+ Indicators, But NK Sir’s This Indicator Gives Near-Perfect Accuracy by Strategy in minutes — watch the original

Key timestamps:

  • 0:50 - Introduction to the indicator for identifying bottoms/tops
  • 2:40 - RSI settings modification
  • 3:20 - EMA application on RSI
  • 3:55 - WMA application on RSI for volume
  • 4:55 - Explanation of RSI line (strength)
  • 5:40 - Explanation of EMA line (momentum)
  • 6:00 - Explanation of WMA line (volume)
  • 6:30 - How to identify a bottom using the indicator
  • 10:00 - How to identify a top using the indicator
  • 13:00 - Summary of indicator components

Strategy overview

Moving averages are usually drawn on price, but this entry belongs to the smaller family of setups that plot them on an indicator instead: here the exponential moving average and a weighted moving average are both applied to the RSI itself, turning a single oscillator pane into a three-line reading. The result is less a price-trend tool than a strength dashboard — the RSI line for raw strength, the EMA line layered on top of it for momentum, and a weighted average that the video presents as its volume component.

The source is a video from the channel Strategy in minutes, titled "I Used 1000+ Indicators, But NK Sir's This Indicator Gives Near-Perfect Accuracy", which attributes the construction to a trader it calls NK Sir and frames it as a tool for spotting bottoms and tops rather than for chasing continuation. Two things distinguish it from ordinary RSI usage: the standard RSI is re-tuned before anything is layered on it, including how its overbought and oversold zones are drawn, and the whole thing is oriented to Monthly, Weekly and Daily charts — a positional timeframe set, not an intraday one, which is unusual for an oscillator-based setup.

The accuracy claim lives in the video's title and belongs to the video, not to any independent testing. What is useful to take from it is the construction idea: stacking a smoothing line and a weight-adjusted line on an oscillator so that strength, momentum and participation can be compared in one window. This page covers the concept and the source; the video walks through each layer in the order it is built.

Topics

rsi strategy · moving average strategy · wma strategy · technical indicators · market bottom indicator · stock trading strategy · futures trading strategy · nifty trading strategy · swing trading · daily trading strategy · weekly trading strategy · monthly trading strategy · reversal trading

Frequently asked questions

What does it mean to apply a moving average to the RSI?

Instead of plotting the average on price candles, it is calculated from the RSI's own values. The line then smooths the oscillator rather than the market, so crossings and separations describe changes in the momentum of strength itself — not in price direction directly.

Why use both an EMA and a WMA on the same RSI?

They answer different questions. In this video the EMA plotted on the RSI is used as the momentum read, while the weighted moving average is introduced as the volume-sensitive line — giving two reference layers over the same strength reading instead of one.

What timeframes is this indicator setup intended for?

The strategy is framed around Monthly, Weekly and Daily charts. That makes it a positional or swing tool aimed at identifying major bottoms and tops, rather than an intraday scalping indicator.

Does the 'near-perfect accuracy' in the title mean it works?

No — that phrasing comes from the video's own title and is a claim by its creator, not a measured result. Any indicator setup should be tested on your own instruments and timeframes first; Strategy Decoder catalogs strategies like this one from video sources so you can evaluate the structure before trusting it.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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