RSI

The Bjorgum RSI indicator is a momentum-based tool designed to provide highly visual RSI signals through dynamic color changes and level shading. By utilizing specific color mapping for different RSI zones, it allows traders to evaluate momentum and overbought/oversold conditions at a glance.

Usage

The Usage section focuses on interpreting the momentum signals and visual cues provided by the indicator:

• Momentum Signals: A cross above the 50 level typically indicates a bullish momentum buy signal, while a fall below the 50 level suggests a bearish sell signal.
• Color Coding: The indicator uses an incremental color scheme by default. For example, values below 30 appear green, while values between 30-50 are red. As momentum increases above 50, the color transitions through blue, yellow, and orange, eventually reaching a "white hot" state above 90.
• Timeframes and Trading Styles: The default "Fast" setting uses a 5-period RSI, which is optimized for swing traders seeking timely entries and exits. Users can switch to the "Slow" setting (14-period) for a more traditional, smoother signal.
• Shading: The area between the midline and the RSI plot is shaded to accentuate momentum strength and direction relative to the 50 level.

Details

The script enhances the standard Relative Strength Index (RSI) by implementing multi-zone color logic. It includes three distinct coloring modes:

• Incremental: Categorical color changes based on fixed RSI brackets.
• Heat Map: A linear gradient transition between two user-defined colors (Bull/Bear).
• Tri-Color: A gradient transition that utilizes a middle color for neutral zones, providing a smoother visual flow across the 0-100 range.

Settings

RSI Speed Control

• Select a Speed: Choose between "Fast" (5-period) and "Slow" (14-period) presets.
• Fast Length: The lookback period used when "Fast" is selected.
• Slow Length: The lookback period used when "Slow" is selected.

General

• Source: The price data source used for RSI calculation (default is Close).

Color Scheme

• Color Scheme: Select the visual logic (Incremental, Heat Map, or Tri-Color).
• Incremental Colors: A series of color inputs to define the appearance of the RSI line at specific 5-point intervals.
• 2 Color Heat Map: Defines the colors for the gradient when using the Heat Map mode.
• 3 Color Scheme: Defines the bull, mid, and bear colors for the Tri-Color mode.

Horizontal Plots

• Overbought/Oversold/Mid Level: Toggle the visibility, level, and color of the 70, 30, and 50 horizontal lines.

Optional Bar Color

• Bar Color: When enabled, the chart price bars will be colored to match the RSI indicator color.

FAQ

How do I use the different color modes?

You can navigate to the "Color Scheme" setting in the indicator inputs. "Incremental" uses distinct steps, "Heat Map" provides a two-color blend, and "Tri-Color" adds a midpoint for more granular gradient tracking.

What is the advantage of a 5-period RSI?

A shorter period like 5 makes the RSI more sensitive to recent price action. This results in faster crosses of the 50-line and quicker reaches into overbought or oversold zones, which can be beneficial for short-term swing trading.

How can I access Bjorgum RSI?

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