Icahns RSI Divergence
This is an optimized version of a popular RSI Divergence Detector with a bar color scheme based on the RSI's direction
RSI Divergence is a potent tool in identifying shifts in market momentum or trend reversals. A RSI momentum divergence occurs when there's a disagreement between the direction of the price and the RSI . For example, in an uptrend, a divergence occurs when price makes a higher high, but the indicator makes a lower low (i.e. Standard Bearish Divergence).
This indicator confirms the divergence on the 2nd candle close after the divergence is printed.
I've found that RSI div signals a shift in momentum the best on the 1H and 4H time interval.
______________________________________________________
How to read the Indicator:
R = Regular
H = Hidden
Green divergences are bullish
Red Divergences are bearish
The candle colors are based on the current RSI value.
Light Blue: If RSI is above 70
Pink: If the RSI is below 30
Green: If the RSI is above 50 and below 70
Red: If the RSI is below 50 and above 30
RSI Divergence is a potent tool in identifying shifts in market momentum or trend reversals. A RSI momentum divergence occurs when there's a disagreement between the direction of the price and the RSI . For example, in an uptrend, a divergence occurs when price makes a higher high, but the indicator makes a lower low (i.e. Standard Bearish Divergence).
This indicator confirms the divergence on the 2nd candle close after the divergence is printed.
I've found that RSI div signals a shift in momentum the best on the 1H and 4H time interval.
______________________________________________________
How to read the Indicator:
R = Regular
H = Hidden
Green divergences are bullish
Red Divergences are bearish
The candle colors are based on the current RSI value.
Light Blue: If RSI is above 70
Pink: If the RSI is below 30
Green: If the RSI is above 50 and below 70
Red: If the RSI is below 50 and above 30