The Kairi measures the difference between the current price and its as a percentage of the moving average.
We made a few modifications to the Kairi to improve its timing and balance its sensitivity. First, we calculated a 'fast' and 'slow' Kairi Relative Index. To do this, it calculates the difference between the current price and a with a length of 7 periods for the fast Kairi. Then, the difference between the current price and an of length 24 is calculated for the slow Kairi.
The big modification is using a 25 period of slow Kairi Relative Index values as the threshold for buy and sell signals. When the fast Kairi line crosses above the white line(the threshold) it is considered a signal, while a signal comes when it crosses back below the same white line. This solved the issue with the Kairi having slower reaction time than the . As the chart shows, this setup allowed it to catch not only major trends but also predict unexpected price spikes.
Users can adjust all 3 lengths, as well as adjust the option to have the slow Kairi displayed on the chart(shown in second pane).