RSI Threshold Entries and Exits with Chart Bar Coloring

Summary

This simple strategy calculates RSI from closing prices using a configurable period and configurable upper and lower thresholds. It opens a long position when RSI falls below the lower level and closes that position when RSI rises above the upper level. Bars are colored red in the lower region and green in the upper region, with no special color between the thresholds; the indicator and threshold lines are also plotted.

The script includes alert conditions and uses a percentage-of-equity order size. It provides no stop loss, position-sizing analysis, short entries, backtest results, or evidence that the threshold signals identify profitable reversals or continuations. The color description is a visual convention, while the trade rules themselves buy at the low RSI condition and exit at the high one. Performance and suitability across instruments or timeframes are not established by the document.

Key ideas

• The strategy opens a long position when RSI falls below its lower threshold.
• It closes the long position when RSI rises above its upper threshold.
• Price bars are colored by RSI region, while readings between the thresholds receive no special color.
• The RSI period and both thresholds are adjustable, and the script provides alerts.
• The document reports no backtest evidence and specifies no stop-loss rule.

Tags

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