RSI Candles

The RSI Candles indicator colors price bars based on Relative Strength Index (RSI) thresholds to provide a clear visual representation of overbought and oversold market conditions directly on the price chart.

Usage

The Usage section describes how the script can be used to identify momentum shifts and potential exhaustion points. By overlaying RSI data onto the price action, traders can quickly identify when the market has reached specific technical levels without needing a separate oscillator pane.

• Overbought/Oversold Identification: By default, the script highlights candles when the RSI exceeds 70 or falls below 30. This helps in spotting potential reversal zones or areas where a trend might be overextended.
• Trend Bias: Traders can adjust the levels to 50 to use the indicator as a momentum filter. In this configuration, bars will change color based on whether the RSI is above or below the median line, signifying a bullish or bearish bias.
• Visual Clarity: To get the best results, users should disable "Borders" in their chart settings to ensure the bar colors are clearly visible.

Details

The RSI Candles indicator calculates a standard Relative Strength Index using a Rounded Moving Average (RMA). Unlike traditional RSI indicators that plot a line in a sub-window, this script applies logic to the candle colors based on user-defined levels. When the rsiValue crosses above the upLevel, the bars are colored green (bullish exhaustion/momentum); when it crosses below the downLevel, the bars are colored red (bearish exhaustion/momentum). The script also includes built-in alert conditions that trigger specifically when the RSI crosses these boundary levels, allowing for automated monitoring of price extremes.

Settings

• Length: Determines the lookback period for the RSI calculation. A higher value results in a smoother RSI, while a lower value makes the indicator more sensitive to recent price changes.
• UpLevel: Sets the upper threshold for the RSI. When the RSI value is above this number, candles will change color to indicate overbought conditions.
• DownLevel: Sets the lower threshold for the RSI. When the RSI value is below this number, candles will change color to indicate oversold conditions.

FAQ

How can I change the sensitivity of the RSI Candles?
You can adjust the "Length" setting in the indicator inputs; decreasing the value will make the candle color changes more frequent, while increasing it will require more sustained price movement to trigger a color change.

Can I use this for 50-level crossovers?
Yes, by setting both the UpLevel and DownLevel to 50, the candles will reflect whether the current RSI is in a bullish or bearish regime relative to the midpoint.

How do I access the RSI Candles indicator?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.