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RSI Candle Signal Indicator
will change bars’ color when set overbought or oversold levels reach.
How to Use RSI Candle Signal
- Uptrend/Downtrends – RSI may be used to detect trending markets. For example, the RSI may stay above the mid line 50 in an
uptrend. - Top and Buttoms – RSI may help in identifying the tops around the overbought readings (usually above 70), and the bottoms
around the oversold area (usually below 30). - Divergence – divergence occurs when RSI directional movement is not confirmed by the price action. For example, a bullish
divergence occurs when EURUSD makes lowerlow but RSI makes higher low. This means that EURUSD is losing momentum and a bullish correction is
possible.
Paramètres (
The setting of the parameters is possible.)
Original Setting :
- RSI Period – 14.
- Overbought – 70.
- Oversold – 30.
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