RSI (Indicator)
What Is It?
- It is an indicator that shows the extreme trading levels of the markets. It works in all markets.
How It Works?
Input Parameters:
- It uses various Bolinger Band levels to paint RSI levels on the chart.
- Length: Determines how many candles the indicator looks back to calculate its values. This is set by the user.
- Source: Allows the user to choose the price data (e.g., close, open, high, low) that the indicator will be based on.
- Position Trading, Day Trading, and Scalp Trading: These are options that allow the user to choose which color options they want to enable or disable.
Bollinger Bands Plotting:
- It plots three sets of Bollinger Bands with different colors.
Coloring:
- Depending on the conditions specified, it sets the background color. For example, if the high of the current candle is greater than the upper band of the fourth set, it sets the background color to red; if the low is less than the lower band of the fourth set, it sets the background color to green. Similar conditions are applied for other sets.
- Alerts:
It sets alerts for overbought and oversold conditions for each trading type (Position Trading, Day Trading, Scalp Trading).
Which indicators were used
- Bolinger Band.
- RSI.
Trade Types
- Scalp Trading: Shows you candles bouncing off the first Bolinger Band in the much shorter term.
- Day Trading: Shows you candles bouncing off the second Bolinger Band in the more medium term.
- Position Trading: Shows you larger extreme trades in the longer term, candles bouncing off the third Bolinger Band.
How to Use
- The user sets the Length parameter according to their preference.
- They can choose the Source of price data.
- They can enable/disable color options for Position Trading, Day Trading, and Scalp Trading.
- Based on the Bollinger Bands calculations, the indicator will provide visual cues and alerts for overbought and oversold conditions.
