🧬Range Indicator
The RSI in better!
Last updated
The RSI in better!
Last updated
The Range Indicator is a momentum indicator similar to the RSI. Unfortunately, the RSI is the most used momentum indicator, the divergences it offers are not relevant enough in my opinion. That's why I developed my own tool indicating the momentum of an asset: the Range Indicator. It allows you to get more signals and to refine your view of the market.
Its second moving average is very relevant to show the underlying trend of an asset.
The range indicator is used to identify potential reversal areas.
The "Limit the price" calculation mode will limit the indicator between 0 and 100. The overbought zone is above 75 and the oversold zone is below 25.
You can spot divergences between the price and the indicator. Some more conservative traders will wait for a divergence, in a good price location, the bottom of a range for example. They then wait for the indicator to change color to white as a confirmation. It's up to you to see what you think is most relevant.
You can choose to limit the price or not. This gives a very different view.
A 5 color code indicates the strength of the momentum. Feel free to adapt these colors to your preferences.
Dark orange: overbought
Light orange: buying force
Light grey: neutral state
Light purple: selling strength
Dark purple: oversold
The "second MA" is a "house" moving average, it is very effective to spot the underlying trend of an asset as you can see below:
In the settings you can:
Choose to limit the price from 0 to 100 like an RSI for example, or to display the calculation in "free" mode,
Change the parameters of the main moving average (length, source and different color modes),
Choose whether or not to add a second moving average,
Define a length and the crossing mode.
