Color RSI-MACD: An RSI Difference Histogram

Summary

This indicator presents a MACD-style histogram derived from the difference between an RSI oscillator and an average of that oscillator. Its color changes provide a visual way to follow changes in that difference. The document identifies the indicator’s underlying calculation but does not explain its parameters, how the averaging is chosen, or how to interpret particular colors as trading signals.

The note gives no charts with performance evidence, backtest, entry or exit rules, or risk controls. It also mentions that the implementation depends on a separate smoothing library, so reproducing the indicator requires that external component. Treat it as a description of a technical indicator rather than a validated trading strategy; the text alone is not enough to assess its reliability across markets or settings.

Key ideas

• The histogram is based on the difference between RSI and an average of RSI.
• The indicator uses color to display its histogram values.
• The description does not provide explicit trading rules or performance evidence.
• The implementation depends on a separate smoothing library.

Tags

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