RSI Ribbon + Candle
Apr 7, 2015
The RSI Ribbon + Candle indicator combines the Relative Strength Index (RSI) with a multiple moving average ribbon to provide a comprehensive visualization of trend momentum and potential reversals.
Usage
The tool is primarily used to identify trend strength and direction through color-coded visual cues on both the oscillator ribbon and the chart candles.
- Trend Strength: Green and lime colors indicate strong bullish momentum, while red and maroon signify bearish trends.
- Neutral Zones: Yellow (or blue/gray depending on color settings) indicates periods of caution, consolidation, or no clear trend.
- Divergences: Users can look for discrepancies between price action and the RSI Ribbon peaks/troughs to identify potential trend exhaustion.
- Bar Coloring: The script applies colors to the price bars based on "Trend Power," a calculated value derived from the ranking and slope of the moving average stack.
Details
The indicator calculates a fast RSI and then applies a series of nine moving averages to that RSI value. These moving averages use incremental lengths based on a user-defined scalar, creating a "ribbon" effect.
The core logic employs a "Trend Power" calculation (maTPower). This value is determined by the maRank function, which evaluates the slope of each moving average relative to its position against a baseline (the 9th MA). This helps in quantifying whether momentum is accelerating or decelerating within the overall trend.
Settings
- RSI Source: Determines the price data (e.g., Close, Open, High, Low) used for the RSI calculation.
- Fast RSI Period Length: Sets the lookback period for the initial RSI calculation.
- MA Period Length Incremental Scalar: Sets the base multiplier for the nine moving average lengths in the ribbon.
- Exponential MA Set 1?: A toggle to switch between Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) for the ribbon construction.
FAQ
How do I interpret the ribbon colors?
Bright green suggests strong upward momentum, while darker red suggests strong downward momentum. Transitionary colors indicate weakening trends or potential reversals.
Can I use this for divergence trading?
Yes, the RSI Ribbon is particularly useful for spotting momentum divergences by comparing the peaks and troughs of the ribbon against the peaks and troughs of price.
How do I get access to RSI Ribbon + Candle?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.