Candlestick Visualization of an RSI and Volume Indicator

Summary

This indicator presents processed price time series as candlesticks associated with an RSI and volume-based calculation. It uses one upper and one lower threshold, with a colored band between them. Candles that close within the band use conventional green or red directional colors; candles closing outside it use alternate colors to distinguish their position relative to the channel and their direction. The described inputs include the RSI period, volume type, upper and lower levels, a gap parameter, and a horizontal shift.

The note explains the visual encoding and parameter choices, but does not provide a trading rule, test results, or evidence that the display improves decisions. The listed defaults specify a 14-period RSI, tick volume, thresholds of positive and negative 15, a gap of 10 points, and no shift. These settings and color distinctions are implementation details rather than validated signals. Interpretation may depend on the underlying algorithm and instrument, and the note does not explain how to handle different market regimes or assess the indicator out of sample.

Key ideas

• The indicator displays transformed price data in candlestick form using RSI- and volume-related processing.
• A single upper and lower threshold define a central channel.
• Candles inside and outside the channel receive different colors based on direction and location.
• The available inputs control period, volume source, thresholds, gap, and horizontal shift.
• No entry or exit rules or performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.