Extended Normalized RSI with Configurable Signal Coloring

Summary

This short indicator description presents an extended version of normalized RSI. It says the normalization approach is explained in a separate discussion, while this version adds options intended to make the indicator easier to interpret for trading decisions. Users can choose to change the indicator’s color when RSI crosses outer thresholds, crosses the midpoint at 50, or changes slope. The display also includes visual aids for quickly assessing the RSI’s current state.

The description suggests treating color changes as signals or incorporating the indicator into another RSI-based strategy. It does not define the normalization formula, threshold values, signal rules, instruments, or chart timeframe, and it provides no empirical results or backtest. As a result, the text explains available visual options rather than establishing a complete trading method or evidence of profitability. Any use as a signal would require the trader to specify the settings and test them in the intended market context.

Key ideas

• The indicator extends a normalized RSI display with configurable color changes.
• Color changes can be tied to outer-level crossings, midpoint crossings, or slope changes.
• Visual aids are intended to make the RSI state easier to read at a glance.
• The description suggests using color changes as signals but gives no tested strategy or performance evidence.

Tags

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