Coloring Candles by RSI Level and Direction

Summary

This indicator description explains how to recolor price candles according to the Relative Strength Index. It offers comparison modes based on whether RSI is above or below 50, whether it crosses overbought or oversold thresholds, or whether the current RSI value has risen or fallen from the previous value. Candle direction is combined with the RSI condition: bullish and bearish candles receive different shades for bullish or bearish RSI states, while the threshold and change modes can display neutral cases in gray.

Users can adjust the RSI period, applied price, overbought and oversold levels, and comparison mode. The document provides qualitative color rules and references example chart configurations, but it gives no evidence that the overlay predicts returns or improves trading performance. It is a visualization aid for interpreting RSI alongside price candles; any trading signal or strategy using it would require separate evaluation.

Key ideas

• The overlay assigns candle colors using configurable RSI comparisons.
• One mode distinguishes RSI values above and below the midpoint of 50.
• A threshold mode highlights overbought and oversold states and colors intermediate conditions neutrally.
• A direction mode compares current RSI with its prior value and colors rising or falling readings differently.
• The indicator description does not provide performance tests or establish predictive value.

Tags

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