The relative strenght index (RSI) is an oscillator generally used to detect overbought and oversold conditions which indicate a market could reverse.
In this case however, we are using it as a directional indicator, using the 50 level as a judge of whether we need to look for long entries or short entries. I have added an optional EMA which could be used for timing the entries or exits. By default the indicator will color the bars in the same color as the RSI, but you can just toggle it in the settings to switch this off.
Let me know how you use this indicator and if you find this specific "directional" version useful. Help others finding this indicator by posting a link to this script in your publications and share your success stories.
Likes, shares, comments and suggestions are of course appreciated ! Let me know what you think !
I changed the RSI line setting to steps, now all i need to do is follow the steps. Thanks for the simple indicator. Very helpful.
shunmugapriyapandian
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How I can use this script, Can anyone explain me pls
Nico.Muselle
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@shunmugapriyapandian, hi and thanks for visiting. To use the script, just add it to your favorites. Then choose the chart you want to apply it to, click on Indicators > Favorites and you will find it there.
Good luck and happy trading !
I changed the RSI line setting to steps, now all i need to do is follow the steps. Thanks for the simple indicator. Very helpful.