RSI (Indicator)

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Input Information

Name	Expression	Default	Description
Price	Numeric	Close	Price used in calculation of RSI.
Length	Numeric	14	Number of bars to include in the calculation.
OverSold	Numeric	30	RSI level considered as oversold.
OverBought	Numeric	70	RSI level considered as overbought.
OverSColor	Numeric	Cyan	Color used when RSI is below the OverSold level.
OverBColor	Numeric	Red	Color used when RSI is above the OverBought level.

Market Synopsis

The Relative Strength Index (RSI) indicator calculates a value based on the cumulative strength and weakness of price, specified in the input Price, over the period specified in the input Length. For that number of bars, RSI accumulates the points gained on bars with higher closes and the points lost on bars with lower closes. These two sums are indexed, with the index plotted on the chart. The RSI plots as an oscillator with a value from 0 to 100. The direction of RSI should confirm price movement. For example, a rising RSI confirms rising prices.

RSI can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in RSI may indicate a false breakout. RSI is also used to identify overbought and oversold conditions when the RSI value reaches extreme highs or lows. This indicator automatically changes the color of the RSI plot when it exceeds either of the levels specified in the inputs OverSold and OverBought. Horizontal reference lines are also plotted at these levels as visual aids.

Plot Information

Number	Name	Default Color	Description
Plot1	RSI	Grey, or as specified by inputs	Plots the RSI value.
Plot2	OverBot	Dark Green	OverBought reference line.
Plot3	OverSold	Dark Green	OverSold reference line.

When applied to a chart, this indicator displays three plots in a separate subgraph from the price data.