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Normalizing OHLC Prices as RSI Candles on a Bounded Scale

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Summary

This brief indicator description presents an alternative display for price data: calculate RSI separately for open, high, low, and close, then show the transformed values as colored candles in a separate chart pane. Because RSI values occupy a bounded 0-to-100 scale, the display maps price movement into a familiar normalized range while retaining candle-like relationships among the four price components.

The document frames normalization as a possible way to compare or analyze price behavior on a fixed scale and suggests that this may enable additional uses. It does not specify the RSI lookback, candle coloring rules, instruments, or a trading entry and exit method. No empirical comparison, backtest, or evidence of predictive value is provided, so the description supports understanding the visualization concept rather than evaluating it as a standalone strategy.

Key ideas

  • The indicator transforms open, high, low, and close values into corresponding RSI readings.
  • It displays the four readings as colored candles in a separate pane.
  • The bounded RSI scale offers a normalized view of price movement.
  • The description does not give parameter settings or a trading rule.
  • No performance evidence is provided for the visualization.

Tags

Technical indicatorsEquitiesStatistics

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