RSI Precision Trend Candles

The RSI Precision Trend Candles indicator uses an average range algorithm applied to the Relative Strength Index (RSI) to determine and visualize trend direction directly on the price chart.

Usage

The script functions as a candle coloring tool, helping traders identify trend shifts based on RSI momentum rather than just price action. When the precision trend algorithm detects a bullish shift in the RSI, the candles turn green; when it detects a bearish shift, they turn red.

This tool can be used for:

• Trend Identification: Easily spot the prevailing momentum trend based on filtered RSI values.
• Reversal Signals: Optional "L" (Long) and "S" (Short) labels can be enabled to highlight the exact bar where the trend direction changes.
• Filtering Noise: By adjusting the sensitivity and period settings, users can filter out minor RSI fluctuations to focus on significant structural moves.

Details

The indicator calculates the RSI of a selected source (including expanded types like Heikin-Ashi and smoothed variants). It then identifies the highest and lowest RSI values over a specific lookback period.

The core of the script is the "Precision Trend" algorithm. This logic uses an average range of the RSI to create dynamic thresholds. If the RSI breaks above its upper dynamic boundary, a bullish trend is confirmed. If it falls below the lower boundary, a bearish trend is confirmed. This approach adapts to the volatility of the RSI itself, rather than using fixed overbought/oversold levels.

Settings

Basic Settings

• Heikin-Ashi Better Calculation Type: Selects the smoothing method (AMA, T3, or Kaufman) for specific source types.
• Source: Determines the input data used for the RSI calculation, featuring expanded options like Trend Biased and Heikin-Ashi sources.
• RSI Period: The lookback period for the standard RSI calculation.
• RSI HiLo Period: The lookback period used to determine the high and low range of the RSI.
• Average Period: The period used to calculate the average range for the precision trend boundaries.
• Sense: A multiplier that affects the distance of the trend boundaries; higher values require more significant RSI movement to change the trend.

UI Options

• Show signals?: Toggles the visibility of Long (L) and Short (S) labels on the chart.

Moving Average Inputs

• Kaufman's Adaptive MA (Fast/Slow End): Specific parameters used if Kaufman is selected as the smoothing type.
• Adaptive Moving Average (Fast/Slow): Specific parameters used if AMA is selected as the smoothing type.

FAQ

How do I access RSI Precision Trend Candles?

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

Can I use this for alert notifications?

Yes, the indicator includes built-in alert conditions for trend reversals (Long and Short signals) which can be configured through the TradingView alerts menu.

What is the "Sense" setting for?

The "Sense" setting controls the sensitivity of the trend detection. Increasing this value makes the indicator less sensitive to minor RSI movements, resulting in fewer but potentially more reliable trend changes.