This is a normal version without a transaction sign.
This indicator is analyzed using two normal RCIs. An indicator for trend analysis using RCI with parameters 20 and 40. RCI20 is Short RCI and RCI40 is Long RCI . It is difficult to determine the beginning of a trend, but it is good for determining the end of a trend. It is also effective in determining whether the trend is continuing.
<In the case of an uptrend> RCI20 maintains high value (80% or more) after reaching the upper zone When the RCI40 reaches the upper zone, it is determined that the uptrend has started.
If the RCI40 continues to maintain the upper band, it is determined that the uptrend will continue. (If RCI40 keeps the upper band, the change of RCI20 is ignored.)
If both RCI20 and RCI40 fall below the upper band, we will judge the end of the uptrend.
<In the case of a downtrend> RCI20 maintains low value (-80% or less) after reaching the lower zone When the RCI40 reaches the lower zone, it will judge that a downward trend has started.
If the RCI40 continues to maintain the lower band, it is determined that the downtrend is continuing. (If RCI40 continues to maintain the lower band, ignore the change in RCI20.)
If both RCI20 and RCI40 are above the lower band, it is determined that the downtrend is over.
<Range market> RCI20 and RCI40 do the opposite. One feature is that there is not much sign in the range market.
<About the balloon at the end of the trend> Where the "ending UP trend" balloon is at the end of the upward trend, and where the "ending DOWN trend" balloon is at the end of the downward trend.
The reason that there is a balloon only at the end of the trend, This indicator shows that the end of the trend is relatively accurate, The sign of the start of the trend is rather slow and unreliable.
You can use other indicators to sign the trend start.
This indicator is for market follower. There is a high possibility that effective analysis cannot be performed with contrarian.
<About RCI EMA parameters> The RCI EMA parameters are the parameters of the RCI Moving Average. When this parameter is 1, it will be the same as normal RCI . Increasing this parameter will smooth the RCI line.
Basically, the parameter of EMA can be 1 but If the RCI line is moving too hard to analyze, consider increasing the parameter.
In creating this indicator, I refer to the indicator called RCI created by jadbrother.