OPEN-SOURCE SCRIPT
Rainbow Collection - Blue
Slopes are an increasingly key concept in Technical Analysis. The most basic type is to calculate them on the prices, but also on technical indicators such as moving averages and the RSI.
In technical analysis, you generally use the RSI to detect imminent reversal moves within a range. In the case of the Blue indicator, we are calculating the slope of the market price and then calculating the RSI of that slope in order to detect instances of reversal.
The Blue indicator is therefore used as follows:
* A bullish signal is generated whenever the 21-period RSI of the 21-period market slope surpasses 30 after having been below it but remains below 35.
*A bearish signal is generated whenever the 21-period RSI of the 21-period market slope breaks 70 after having been above it but remains above 65.
The aim of the Blue indicator is to capture reversals as early as possible through a combination of slopes and entry techniques.
In technical analysis, you generally use the RSI to detect imminent reversal moves within a range. In the case of the Blue indicator, we are calculating the slope of the market price and then calculating the RSI of that slope in order to detect instances of reversal.
The Blue indicator is therefore used as follows:
* A bullish signal is generated whenever the 21-period RSI of the 21-period market slope surpasses 30 after having been below it but remains below 35.
*A bearish signal is generated whenever the 21-period RSI of the 21-period market slope breaks 70 after having been above it but remains above 65.
The aim of the Blue indicator is to capture reversals as early as possible through a combination of slopes and entry techniques.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.