RSI Color

The RSI Color indicator colors price candles based on a smoothed Relative Strength Index (RSI) calculation, providing a visual representation of momentum directly on the chart. By mapping RSI levels to a custom multi-point gradient, it helps traders identify overbought, oversold, and transitional market phases through intuitive color shifts.

Usage

The Usage section focuses on interpreting momentum through candle colors. When the RSI value is high (overbought), the candles shift toward the warmer end of the spectrum (e.g., reds/purples), whereas lower RSI values (oversold) shift toward cooler or neutral tones depending on the selected gradient.

This tool is particularly useful for:

• Trend Identification: Seeing a consistent color range during a trend.
• Reversal Spotting: Watching for rapid color changes as RSI leaves extreme levels.
• Signal Filtering: Using candle colors as a secondary confirmation for price action setups.

Details

The script utilizes a refactored version of the RSI that includes a smoothing filter to reduce market noise. Unlike a standard RSI, this implementation applies a weighted average filter to the source price before calculating the oscillator. The coloring logic uses an advanced HSL-to-RGB conversion method, allowing for a 100-point smooth gradient transition. It also features adjustable luminance styles (SDTV, Adobe, HDTV, Standard, Bihexcone) to change how color brightness and saturation are perceived on different chart backgrounds.

Settings

• Source: Determines the price data used for the RSI calculation (e.g., Close, Open, HL2).
• Length: Sets the lookback period for the RSI oscillator. Higher values result in slower color transitions.
• Hue Shift: Allows users to rotate the color wheel to customize the gradient colors according to personal preference.
• Luminance Style: Selects the mathematical model used to calculate brightness, affecting the visual intensity of the candle colors.

FAQ

How do I interpret the different colors?

The colors represent the current level of the RSI. Generally, the gradient moves from cooler colors at low RSI levels to warmer/darker colors at high RSI levels. You can adjust the "Hue Shift" in settings if you prefer a different color map.

Does this indicator provide alerts?

Yes, the script includes built-in alerts for when the smoothed RSI crosses over the 70 (overbought) level or crosses under the 30 (oversold) level.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.