Smoothing RSI Candles and Adding Keltner Bands

Summary

This indicator represents RSI as candles derived from the instrument’s high, low, open, and close. A moving average can smooth each RSI series before the candles are drawn. It then calculates a central average from the RSI high, low, and close, and builds upper and lower bands around that center using an average of the RSI candle range multiplied by a configurable factor. The example settings use a 14-period RSI, a smoothing period of 3, and Keltner calculations with a 14-period length and a 1.5 multiplier.

The author describes the bands as a way to filter trends and identify higher- or lower-volatility phases in the oscillator. This offers a visual framework for examining RSI movement and its range rather than a tested entry or exit system. The document supplies indicator construction details but no trading rules, market examples, backtest, or evidence that the bands improve decisions. The stated settings are examples, and the source does not establish how they should be calibrated across instruments or timeframes.

Key ideas

• The indicator plots RSI values for open, high, low, and close as oscillator candles.
• A configurable moving average smooths the RSI inputs before plotting.
• The central line averages the RSI high, low, and close, while the bands use an average of the candle range.
• The bands are proposed as visual aids for trend filtering and volatility phase detection.
• No entry rules or performance evidence are provided.

Tags

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