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Relative Strength Index + Candle coloring

Relative Strength Index ( RSI )

>The Relative Strength Index ( RSI ), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100.

>Traditionally the RSI is considered overbought when above 70 and oversold when below 30. But blindly selling at 70 and buying at 30 is a bad idea because price can make very low movement while oscillator makes large moves and vice versa.

>In RSI Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.

>Calculation
The RSI is a fairly simple formula, The basic formula is:
RSI = 100 –

>In this script I have used the standard 14 period RSI and added candle coloring feature, I used two other periods other than 14 to determine the major trend and use the position of 14 period RSI relative to other 2 periods to color the candle.

>color reference, what they represent :

>also look out for divergences, its not included in this script will provide in next updates, divergence are HH on price but LH on RSI , LL on price but LH on RSI , easy to identify. the best divergences are often easy to find they occur within next 5-10 candles, do not overcomplicate when it doesn't exist.

How to use this candle coloring:
>best during major trends.
>not best for mean reversion plays.
>use it as an addition to your system.




Release Notes: > Removed mid line and plotted other 2 period RSI
> mid line not required since other 2 RSI act as dynamic Support/Resistance
>example >Added 80,20 horizontals with color.

note:
>turn off borders
>or make both border black
>change colors for dark mode

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twitter: https://twitter.com/retardd_
btc: 3LYvup4GGsV3cZcoMCzsgnSbjopuNr47aJ

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