Here is a fun new way to view the RSI. A new TradingView Indicator for you RSI enthusiasts. This is the Honey Chai RSI Indicator. This indicator combines the RSI oscillator with additional features to enhance its functionality and visual study. The purpose of this indicator is to provide a more comprehensive view of the RSI and aid in identifying trends, potential entry / exit points, and ranging conditions.
How it's Built.
The RSI: The RSI is represented by its common line which you can turn on and off, as usual.
Japanese candlesticks: In this indicator, are also Japanese candlesticks giving you their representation of the RSI. This provides a clearer visualization of the RSI movements across its Open, High, Low, and Close, unlike the OHLC of the Heiken Ashi candles in the Heiken Ashi Algo.
In addition to the RSI line and Japanese candles, there are two moving averages applied to the RSI value. For the purpose of keeping with my CoffeeShop theme, the High average line is the Honey Line and the Low average line is the Chai Line. The user can choose between Exponential Moving Average or Simple Moving average. These moving averages are calculated based on the high vs low values of the past RSI readings, with the high average acting as the leading line. When the Honey line is above the Chai Line, it indicates an uptrend, whereas when the Honey Line is below the Chai Line, it suggests a downtrend. If the price is moving up but the Honey line is still below the Chai line, you're technically still in a downtrend and you should trade this like a pullback.
Identifying Trends. To identify short entries, you need to wait for the Japanese candles to open and close below the Honey line while the Honey line is below the Chai Line. Conversely, you wait for the Japanese candles to open and close above the Honey line while the Honey line is above the Chai Line. This confirmation helps in identifying potential reversal points.
Range Bound Market. The indicator also incorporates a visual representation of a ranging area. The 60 and 40 levels of the RSI are visually differentiated to indicate this range. When the Japanese candles are opening and closing within this range and the RSI remains contained within these levels, it suggests that the price is likely in a ranging phase, and traders should wait for a breakout from this range before taking action. In summary, this custom indicator provides a comprehensive view of the RSI oscillator by incorporating Japanese candlestick visuals, moving averages, and a visual representation of the ranging area. By analyzing these elements, traders can gain insights into trends, potential entry points, and ranging conditions in the market.
---------HOW TO TRADE-----------
LONGS AND SHORTS An example on how to use this in a long trade is to wait for your moving averages to be high (yellow) over low (orange). For the purpose of the description in this indicator you're looking for the honey to be over the chai. Even if the RSI and Japanese candles in the oscillator are falling, however the honey is above the Chai, you are still in an uptrend. The positioning of the moving averages will always determine the direction of the overall price trend so in this position you're looking for long entries. take a long position as an entry when the open and the close of the Japanese candle in the oscillator is above your honey line.
when you notice a bearish candle closing below the honey line in an uptrend position you can exit your trade.
Confluence for short trades would be just the opposite and using the moving averages in an upside down pattern. In other words the honey needs to be below the chai and your Japanese candle needs to be closing bearish however they open and the close of that candle needs to be below both of your moving averages. exit when you get a bullish candle closing in between the averages.
TRADING RANGES Wait for your moving average to enter into the range bound 60/40 area as well as your Japanese candles to Wick above and below this area but not close above and below the area. At this point you can mark off the high and the low of the range as it pertains to your price chart and start using your range trading strategy.
版本注释
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Added Bullish vs Bearish Volume to the layout.
Removed the DUAL moving averages and replaced them with a single moving average that changes color based on position. Light colored moving average is uptrend and dark colored moving average is downtrend.
Adjusted all values in oscillator to start from ZERO line going plus and minus.
版本注释
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RSI was in the wrong place giving wrong values. Its correct now.
版本注释
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Gave ability to use both the Honey and Chi lines separately or if you want to use the combo HoneyChi line as a single line.
版本注释
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Minor Update to Moving Average Calculations
版本注释
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Updated the selection of RSI Moving Average. It was changed to use either EMA or VWMA
@luchi048, guys come on read the release information
Crug20
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Hello. Not sure if anyone else is experiencing this, but it seems as though the incorrect colour is printing when using the combined HoneyChai line. If honey is on top, the combined line is printing orange and vice-versa. I know I could change the colours manually but it wasn’t doing that yesterday so I think its perhaps a bug… can you check?
CoffeeshopCrypto
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@Crug20, check the release notes. about 15hrs ago i made the correction to this issue. also keep in mind, the lines are giving you an early indication of the trend change. With the new correction it is absolutely giving you the correct color even though you may "visually" see the lines and RSI and Price direction are all opposing eachother. Trust the lines....they are showing you trend CHANGE or STOP very early. This is almost geared to be a predictive indicator
Crug20
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@CoffeeshopCrypto, hello. Thank you for your reply. I really do appreciate it. I’m still a bit confused though…. Which lines should I trust? The combined line? The combined line is orange/dark (suggesting downtrend) whilst honey is above chai (suggesting uptrend)….
Crug20
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@Crug20, I’ve just seen your reply to consistentHead below. Ill wait for mine to update
CoffeeshopCrypto
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@Crug20, you cant just wait for it to update. delete it from your chart re add it and then reload your chart
Crug20
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@CoffeeshopCrypto, Hmmm, I’ve tried that but I’m still having the same issue.
On the chart I’m looking at (AUDUSD M5) the combined HoneyChai line is currently yellow, indicating an uptrend. However, if I switch to using the separate lines, honey is currently below chai (yellow is below orange), indicating a downtrend. So it’s indicating an uptrend with the combined HoneyChai line, and a downtrend with the separate Honey and Chai lines at the same time. That doesn’t seem right and I swear it wasn’t doing that last week…
… Just not sure whether I should use the combined or the separate lines as they are saying the opposite according to the info above
CoffeeshopCrypto
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@Crug20, i can assure you that the code is correct. And you cant compare its use to last week. I just updated it yesterday. That being said, just because one line is below the other, does not imply THAT is the moment of the new trend. Where is your price? Where is price on your chart compared to highs and lows? Where is your price compared to support and resistance?
Again, the trend color is a super early indicator of trend change. That means either the current trend is ENDING or is going to STOP and range. Just because the color changes, doesnt mean you are in a trend reversal yet
consistentHead88501
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Hi, the dual MA honey and chai often doesn't match with the single color based MA