Relative Strength Index Direction by Nico Muselle

The relative strenght index (RSI) is an oscillator generally used to detect overbought and oversold conditions which indicate a market could reverse.

In this case however, we are using it as a directional indicator, using the 50 level as a judge of whether we need to look for long entries or short entries. I have added an optional EMA which could be used for timing the entries or exits. By default the indicator will color the bars in the same color as the RSI, but you can just toggle it in the settings to switch this off.

Let me know how you use this indicator and if you find this specific "directional" version useful. Help others finding this indicator by posting a link to this script in your publications and share your success stories.

Likes, shares, comments and suggestions are of course appreciated ! Let me know what you think !