rsi+ichmoku 0.1

The rsi+ichmoku indicator integrates the Relative Strength Index (RSI) with components of the Ichimoku Kinko Hyo system to provide a momentum-based trend-following tool. By applying Ichimoku calculations directly to RSI values rather than price, it aims to filter noise and identify high-probability trend shifts through color-coded visual cues.

Usage

The tool is primarily used to identify trend reversals and continuations based on the position of the RSI relative to its internal Ichimoku-style averages.

• Bullish Signals: A transition to a green RSI line indicates bullish momentum. This typically occurs when the RSI value is above both the Conversion (Turn) and Base (Std) lines.
• Bearish Signals: A transition to a red RSI line indicates bearish momentum, occurring when the RSI falls below both internal averages.
• Neutral State: When the RSI is between the two averages, the line color changes to a neutral gray/yellow tone, suggesting a period of transition or consolidation.

Traders can monitor the crossovers between the blue "Turn" line and the red "Std" line for early indications of trend shifts, complemented by the 70 and 30 threshold levels for overbought/oversold context.

Details

Unlike traditional Ichimoku applications that use price action, this script calculates the Conversion Line (Tenkan-sen) and Base Line (Kijun-sen) using the RSI values as the source.

The "Turn" and "Std" values are derived from the midpoint of the highest high and lowest low of the RSI over their respective lookback periods. This approach smooths the RSI oscillator and provides dynamic support and resistance levels within the 0-100 oscillator range. The script uses a specific logic count (cnt) to determine the color of the thick RSI line based on how many averages the current RSI value is exceeding.

Settings

• Turn Length: Sets the lookback period for the Ichimoku Conversion (Turn) line calculation.
• Std Length: Sets the lookback period for the Ichimoku Base (Std) line calculation.
• RSI Length: Determines the period used to calculate the core Relative Strength Index value.

FAQ

How do I interpret the color changes in the RSI line?

The color is determined by the RSI's position relative to its "Turn" and "Std" averages. Green signifies the RSI is above both, red signifies it is below both, and the neutral color signifies it is between the two.

What are the horizontal levels at 70 and 30 for?

These are standard RSI threshold levels used to identify potentially overbought (70) or oversold (30) conditions within the momentum oscillator.

How can I access rsi+ichmoku?

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