Smoothed RSI Histogram with Overbought and Direction Color Modes

Summary

This document describes a smoothed Relative Strength Index displayed as a histogram. Its colors can represent either breaks through overbought or oversold levels, or changes in the histogram’s direction; the selected input parameter determines which coloring mode is used. The indicator is presented in a zero-centered symmetric format, with values spanning from minus fifty to plus fifty, to make the histogram easier to read.

The note identifies a smoothing library required by the implementation and points to a separate explanation of its averaging classes. It does not provide threshold settings, a trading rule, example performance, or evidence comparing the two color modes. The described colors therefore communicate oscillator conditions rather than establish profitable entry or exit signals. Users would need to determine suitable settings and evaluate the indicator against their instruments and timeframes before relying on it.

Key ideas

• The indicator plots a smoothed RSI as a zero-centered histogram.
• One coloring mode highlights breaks through overbought or oversold levels.
• Another coloring mode indicates changes in histogram direction.
• The displayed scale runs symmetrically from minus fifty to plus fifty.
• The document does not specify trading rules or provide performance evidence.

Tags

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