The magic comes when you're able to correlate both indicators correctly, this is the power I give you with the RSCCIO.
I've added additional features to each indicator that make signals more clear and easier to identify.
On the RSI
- Directional color coding similar to what you can find on a . This helps to identify the general trend ( above or below midline ) and the of the movement within.
- For precise correlation the is adjusted to a midline of 0. You can still enter the overbought/oversold levels as you'd expect on a regular and it will be automatically adjusted.
On the CCI
- Extreme strength / weakness color coding when the value exceeds the range makes signals more clear.
- For precise correlation with the , we need to scale down the value of the with the Sensitivity Input. The default value works overall but feel free to play around to adjust the scale of the movement.
The is a that measures the magnitude of recent price changes. An asset is usually considered overbought when the is above 70% and oversold when it is below 30%.
CCI Commodity Channel Index
The was originally developed to spot trend changes. Use the on the longer-term chart to establish the dominant trend and on the shorter-term chart to isolate pullbacks and generate trade signals.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.