rsi and macd

The rsi and macd indicator is a comprehensive technical analysis tool that overlays RSI-based overbought/oversold signals and MACD crossover states directly onto the price chart for streamlined trade identification.

Usage

The indicator uses a system of shapes to denote momentum and trend conditions:

• Small Circles: These appear below the bar (green) when the RSI is in an oversold state and above the bar (red) when the RSI is in an overbought state.
• Big Circles: These indicate that the RSI is not only in an extreme state (oversold/overbought) but is also actively rising from the oversold level or falling from the overbought level, suggesting a potential reversal.
• Small Diamonds: These represent MACD conditions. A green diamond below the bar indicates the MACD is above its signal line while remaining below zero. A red diamond above the bar indicates the MACD is below its signal line while remaining above zero.

Details

This script combines two of the most popular momentum oscillators to provide a clear view of market extremes and trend shifts without needing separate panes. The RSI logic is fixed at a 14-period length using the Relative Moving Average (RMA). The MACD component allows for customization of the fast and slow lengths, as well as the signal line smoothing. By overlaying these signals on price, traders can easily correlate oscillator extremes with price action and candle patterns (the script specifically filters certain bearish signals to include a requirement for a red candle).

Settings

RSI Settings

• Oversold Value: Sets the threshold for oversold conditions (default is 30).
• Overbought Value: Sets the threshold for overbought conditions (default is 70).

MACD Settings

• Fast Length: The period for the fast moving average.
• Slow Length: The period for the slow moving average.
• Source: The price data used for MACD calculations (default is close).
• Signal Smoothing: The period for the signal line.
• Simple MA (Oscillator): If checked, uses SMA instead of EMA for the MACD line calculation.
• Simple MA (Signal Line): If checked, uses SMA instead of EMA for the signal line calculation.

FAQ

How do I access the rsi and macd indicator?

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

Can I change the RSI period?

In this specific version, the RSI period is hardcoded to 14, though the threshold levels (30/70) are fully adjustable in the settings menu.

What do the different shapes mean?

Circles relate to RSI status (extremes and reversals), while diamonds relate to MACD status (crosses and position relative to the zero line).