RSI Bars

The RSI Bars indicator tool provides a visual representation of momentum conditions directly on the price chart by dynamically coloring candles based on Relative Strength Index (RSI) values. This script aims to streamline market analysis by allowing traders to identify overbought and oversold extremes without the need for a secondary oscillator pane.

Usage

The indicator can be used to identify trend exhaustion and potential reversal zones through color shifts.

• Momentum Identification: Bars change color when the RSI crosses into user-defined overbought or oversold thresholds.
• Visual Modes: Users can toggle between "Gradient mode" for a smooth transition of color intensity based on how far RSI extends beyond thresholds, or a "3-step" mode for distinct categorical coloring.
• Trend Context: The "Neutral color follows bar direction" setting allows candles within the neutral RSI zone (between OB/OS) to reflect the individual bar's close vs. open direction, maintaining standard price action context.
• Customization: The intensity and specific hues for overbought, oversold, and neutral conditions are fully adjustable to match any chart theme.

Details

The script calculates a standard RSI and measures its distance relative to the boundaries (0-100). The intensity of the overbought or oversold coloring is derived from a linear interpolation (lerp) function that maps the RSI value to a color palette. For example, as RSI moves from 70 toward 100, the bar color transitions through three user-defined color stages (Min, Mid, Max) to signify increasing momentum extremity.

Settings

RSI Settings

• RSI Source: The price data used for calculation (default is Close).
• RSI Length: The lookback period for the RSI calculation.
• Overbought: The upper threshold where bars begin to shift to the overbought color scheme.
• Oversold: The lower threshold where bars begin to shift to the oversold color scheme.

Visual Settings

• Gradient mode: Toggles between smooth color transitions and a discrete 3-step color palette.
• Neutral color follows bar direction: Determines if bars inside the neutral zone use directional coloring (Up/Down) or the default chart foreground color.
• Color Palettes: Separate color pickers for Overbought (Min/Mid/Max), Oversold (Min/Mid/Max), and Neutral (Up/Down) states.
• Fully color body + wicks + borders: When enabled, applies the RSI color logic to all parts of the candle.
• Extra transparency: Adjusts the overall opacity of the candle coloring.
• Show RSI pane: Optionally displays a standard RSI plot in a separate pane for reference.

FAQ

How do I use this to spot reversals? Look for the "Max" intensity colors (the darkest or most vibrant settings) which indicate the RSI is reaching extreme levels, often preceding a pullback or trend shift.

Can I change the sensitivity of the colors? Yes, by adjusting the Overbought and Oversold threshold inputs, you can control exactly when the color transitions begin to trigger.

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