RSI Label

The RSI Label indicator provides a dynamic visual notification on the price chart when the Relative Strength Index (RSI) reaches overbought or oversold conditions, helping traders maintain focus on price action without missing critical momentum shifts.

Usage

The RSI Label is designed to declutter the workspace by only displaying information when specific RSI thresholds are met. By default, it projects a label to the right of the current price action when the RSI is in an extreme state (above 70 or below 30). This allows traders who prioritize price action analysis to remain aware of momentum extremes without needing a separate oscillator pane at the bottom of their screen.

Examples of usage include:

• Monitoring for potential reversals or exhaustion when the "RSI High" or "RSI Low" labels appear.
• Using the optional mid-range label to confirm when the market is in a neutral momentum state.
• Integrating the automated alerts to stay informed of RSI crosses into extreme zones without manual monitoring.

Details

The script calculates a standard Relative Strength Index using the Wilder's Smoothing method (RMA) over a user-defined lookback period. Unlike standard RSI indicators that plot a continuous line, this tool uses plotshape with a show_last=1 parameter and an offset. This creates a "floating" label effect to the right of the most recent candle.

The logic evaluates three primary states:

• RSI High: RSI is greater than or equal to 70.
• RSI Low: RSI is less than or equal to 30.
• RSI Mid: RSI is between 30 and 70.

The indicator also includes built-in alert conditions that trigger specifically when the RSI crosses into the overbought (70) or oversold (30) thresholds.

Settings

• Length: Determines the number of bars used to calculate the RSI (default is 14).
• Show RSI Extremes: Toggles the visibility of the labels for overbought (High) and oversold (Low) conditions.
• Show RSI Mid Range: Toggles the visibility of the label when the RSI is within the neutral 30-70 range.

FAQ

How do I interpret the labels?

The "RSI High" label indicates overbought conditions (>= 70), "RSI Low" indicates oversold conditions (<= 30), and "RSI Mid" indicates the RSI is in a neutral zone.

Can I change the RSI threshold values?

The current version uses fixed standard thresholds of 70 and 30 for the labels; however, you can adjust the "Length" setting to change the sensitivity of the calculation.

How can I access the RSI Label?

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