PROTECTED SOURCE SCRIPT
RSI & ADX [APIDEVs]
The RSI ( Relative Strength Index ) is an oscillator-type indicator used by traders who perform technical analysis to estimate the status of overbought or oversold of an asset on the stock market.
This tool gives the trader the advantage of comparing supply and demand (buying and selling), therefore, we must take into account the following interpretation for its use.
If the buy and sell index are equal, the indicator takes a percentage value of 50, which indicates that the relative forces are in equity.
As its value is over 50%, it indicates that the buyer interest is higher than the seller.
When it is less than 50%, then we must know that the selling force is greater.
It also indicates that when the RSI is above 70 on the oscillator, the price is oversold, therefore, it should exit the market.
Similarly, when the RSI is below 30, the asset is oversold, so it is considered convenient to buy.
NEW RSI & ADX
The main improvement lies in the incorporation of a script that allows to visually observe the force of the movement and that this reinforces the perception of the RSI trajectory. It is for this reason that we incorporate the Average Directional Index ( ADX ) in this indicator so that through its logic it can provide other visual elements to help traders.
In this merger we try to maintain the original design of the RSI in order to make a clean integration that does not confuse traders with another indicator.
Improvements made:
• The coloration resulting from the crossing of the DI + and DI- of the ADX was incorporated into the line that marks point 50 of this indicator.
o When the Di + is above the DI- the trend is bullish therefore the middle line of the RSI will be painted green.
o When the Di- is above the DI + the trend is bearish therefore the middle line of the RSI will be painted green.
• A green background was added for the uptrend and red for the downtrend, which is activated exclusively when the price acquires a strong trend. This highly important feature for the interpretation of this new version of the indicator was absorbed from the ADX.
• A function was added that allows showing the weakness of the RSI by changing its color from green to red as the case may be.
• Thinking of the more traditional users, a function was incorporated that allows painting the RSI in a single color.
• A color selector was incorporated that allows painting the candles based on ADX or RSI.
• Added a side panel that indicates the numerical value of the ADX and the RSI.
• As a visual improvement, an upper and lower band was created that more clearly shows the oversold and overbought state of the oscillator.
This tool gives the trader the advantage of comparing supply and demand (buying and selling), therefore, we must take into account the following interpretation for its use.
If the buy and sell index are equal, the indicator takes a percentage value of 50, which indicates that the relative forces are in equity.
As its value is over 50%, it indicates that the buyer interest is higher than the seller.
When it is less than 50%, then we must know that the selling force is greater.
It also indicates that when the RSI is above 70 on the oscillator, the price is oversold, therefore, it should exit the market.
Similarly, when the RSI is below 30, the asset is oversold, so it is considered convenient to buy.
NEW RSI & ADX
The main improvement lies in the incorporation of a script that allows to visually observe the force of the movement and that this reinforces the perception of the RSI trajectory. It is for this reason that we incorporate the Average Directional Index ( ADX ) in this indicator so that through its logic it can provide other visual elements to help traders.
In this merger we try to maintain the original design of the RSI in order to make a clean integration that does not confuse traders with another indicator.
Improvements made:
• The coloration resulting from the crossing of the DI + and DI- of the ADX was incorporated into the line that marks point 50 of this indicator.
o When the Di + is above the DI- the trend is bullish therefore the middle line of the RSI will be painted green.
o When the Di- is above the DI + the trend is bearish therefore the middle line of the RSI will be painted green.
• A green background was added for the uptrend and red for the downtrend, which is activated exclusively when the price acquires a strong trend. This highly important feature for the interpretation of this new version of the indicator was absorbed from the ADX.
• A function was added that allows showing the weakness of the RSI by changing its color from green to red as the case may be.
• Thinking of the more traditional users, a function was incorporated that allows painting the RSI in a single color.
• A color selector was incorporated that allows painting the candles based on ADX or RSI.
• Added a side panel that indicates the numerical value of the ADX and the RSI.
• As a visual improvement, an upper and lower band was created that more clearly shows the oversold and overbought state of the oscillator.
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