TJ_667

Koalafied RSI

// Concept developed from RSI : The Complete Guide by John Hayden

// RSI is regarded as a momentum indicator . 2:1 momentum is associated with RSI values of 66.67 and 33.33 respectfully. In an Uptrend an RSI value of 40 should not be broken and in a downtrend
// a RSI value of 60 should not be exceeded. 4:1 momentum ( RSI values of 80/20) can be associated with extreme market conditions, typically thought of as being Overbought or Oversold.

// Simple divergence provides a strong indication that the preceding trend will resume as soon as the retracement is completed. Multiple long-term divergences (not shown in this indicator)
// increase the likelihood that the preceding trend has ended.

// An Uptrend is indicated when:
// 1. RSI values remain in an 80/ 40 range
// 2. Presence of bearish divergences
// 3. Hidden bullish divergences are seen
// A Downtrend is indicated when:
// 1. RSI values remain in a 60/20 range
// 2. Presence of bullish divergence
// 3. Hidden bearish divergence is seen

// Personal additions to John Haydens concepts are horizontal pivot breaks and diagonal trendline breaks. The 80/20 line color shows the last break of horizontal pivot points , while the rsi
// line changes color with diagonal breaks. Additional support/resistance is shown by 66.67 and 33.33 lines.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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