Using RSI and 4 exponential moving averages, I created this indicator so that you can spot inconsistencies between price action and RSI. There's a lot of misunderstanding surrounding RSI, most people think if something's 'oversold' buying is a guarantee win. This definitely isn't the case as there's many more variable to consider. In addition, with this indicator, candles are colored based off of volume.
INDICATOR USE:
1. Determine trend 2. Find relative support/resistance 3. Once at support/resistance look for entries: -RSI crossing over the Short EMA (CYAN) is your fist buy/sell signal -Short EMA (CYAN) crossing Medium EMA (YELLOW) is your second -RSI crossing Long EMA (PINK) is your final and most accurate signal 4. Once you've made an entry, you can follow step 3. in reverse for an exit
COLORED CANDLES:
Dark Green candles = Strong Bullish volume Light Green = Average Bullish volume Dark Red candles = Strong Bearish volume Light Red = Average Bearish Volume Orange/blue means volume is conflicting with price action
I plan to add a Colored DOT over each crossover as a visual buy/sell signal if anyone has any suggestions that'd be great :)
well done. thank you for posting the wookie wonder indicator code
WookieWonders
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@theGstack Thanks :) if you reuse the code you don't have to give me credit, unless you want too!
theGstack
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@WookieWonders, always give credit where its due! Don't worry wook, I'll definitely have you linked in the comments
WookieWonders
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@theGstack, I like how you operate <3 Curious to see where other's take this indicator :)
rtxloves7
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Did you ever come out with a strategy for this script? Thanks!
Sporia
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10/10
Ramsez
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This is awesome, Wook, thx!
Any idea how to build similar but only on a subset of price candles: i.e. say, only on each Friday candle and ignore Mon-Thu price candles ? OR each first daily 1H candle ? I'm trying to build an indicator that compares only (e.g. 1H) candles of the first hour of each day to others like that to identify a particularly strong momentum by comparing the first hour's ranges (ATR) to that of previous days.
Many thanks in advance.
WookieWonders
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@Ramsez, Hey sorry for spotting this so late, but you're going to want to use python for that it seams.. more specifically matplotlib, numpy, tulipy
bruitdefond
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super amazing. Been using this intraday on the 10 minute.