Phoenix RSI Zone Engine

About

Phoenix RSI Zone Engine draws the RSI on the price itself. The RSI is a number from 0 to 100. It compares recent up moves with recent down moves. See RSI.

It shows four things:

• a coloured cloud around the candles while the RSI pushes up or down;
• a zone, a box, while the RSI is very high (70 or more) or very low (30 or less);
• a SELL REACTION or BUY REACTION mark when a candle turns away from such a zone;
• a dashboard, a small table in the corner.

It is a KAGAMI version of an indicator made by Phoenix. KAGAMI's servers do the maths. Your chart only draws the result.

To find it, click Indicators at the top of the chart. Its name in the list is Phoenix RSI Zone Engine v1.3 Full Heat Upgrade. On the chart, its name shows as PHX RSI HEAT. It is in the KAGAMI group. See Indicators for how to add or remove one.

This indicator is not in every account's Indicators list yet.

What you see on the chart

A chart shows the price as candles. A candle (or bar) is one slice of time. Its thick part is the body: from the first price to the last price of that time.

• The heat cloud. A see-through band around the candles. It is aqua (light blue) while the RSI is above 52 and rising. It is orange while the RSI is below 48 and falling. The stronger the push, the more solid the colour. It shows only on candles with a real body, and not while the market is very quiet. It needs two such candles in a row.
• The overbought zone. An orange box over the candles. It appears when the RSI reaches 70. While the RSI stays at 70 or more, the box grows one candle to the right at each close. It also stretches to fit higher candles. When the RSI drops below 70, the box stops and stays on the chart.
• The oversold zone. An aqua box under the candles, the same way, while the RSI is 30 or less.
• ▼ SELL REACTION. A red label above a candle. The RSI was 70 or more one candle before. Then this candle closed red and fell below the candle before.
• ▲ BUY REACTION. A teal label under a candle. The mirror image: the RSI was 30 or less, then this candle closed green and rose above the candle before.
• The dashboard. A dark table in the top-right corner. It describes the last candle that has closed: Momentum, Zone State, Reaction, Volatility, Trend and Confidence, a score from 0 to 100 with a bar.

These words are the indicator's own names. They are not advice from us.

The cloud, zones and labels are locked. You can't move or edit them. They all go away when you remove the indicator. The dashboard keeps its dark colours on a light chart too.

How traders often read it

• Many traders read the cloud as the direction of the push. Aqua means the RSI is rising. Orange means it is falling.
• Some traders watch how solid the cloud is. A more solid cloud means a stronger push.
• Many traders read a zone as a stretch where the price moved a lot in one direction. Some call it "overbought" or "oversold".
• Some traders watch for the first candle that turns away from a zone. The labels mark such candles.
• Some traders read the dashboard first, as a summary of the last candle.
• Some traders compare the Trend row with a label. A SELL REACTION in a Bullish trend goes against the trend.

An indicator only describes past prices. It cannot tell what the price will do next.

The settings

This indicator has no settings to change. It always uses the same fixed values. The main ones:

• The RSI looks at the last 14 closes. It is then smoothed over 3 candles.
• Overbought is 70 or more. Oversold is 30 or less.
• A usual candle size is measured over the last 14 candles.
• The trend compares an average of the last 21 closes with an average of the last 55.
• After a label, the same kind of label waits 5 candles.
• The cloud is always on. The zones, labels and dashboard are always on.

When it can mislead

• A label is not a turn. After a SELL REACTION, the price can keep rising. After a BUY REACTION, it can keep falling.
• Strong trends. In a strong rise, the RSI can stay above 70 for a long time. The zone keeps growing, and labels can come early.
• Choppy markets. When the price jumps up and down, the cloud flickers on and off. Many short clouds appear.
• Quiet markets. When candles get much smaller than usual, no cloud and no label appear. A clear turn can pass with no mark.
• Labels come after the close. Only finished candles count. A label appears once its candle has closed, never before.
• The wait between labels. For 5 candles after a label, no label of the same kind appears. A second turn in that time gets no mark.
• The confidence is a score. It adds up four parts with fixed rules. It is not a chance of anything.
• Too few candles. The RSI needs 17 candles before it shows. The trend needs 55.
• Gaps. A stock can open far from where it closed the day before. One such candle can change the RSI a lot.
• Old history. KAGAMI uses at most the latest 2,000 candles. Drawings at the far left may differ from other chart apps.

Charts are for learning, not advice. Read our Risk Disclaimer.

An example

Open NASDAQ:AAPL on a 5-minute chart. Add Phoenix RSI Zone Engine v1.3 Full Heat Upgrade.

These numbers are made up. Say the RSI was 74 three candles ago, 77 two candles ago and 76 one candle ago. So the candle before was in the overbought zone.

Now a candle opens at 50.00 and closes at 49.00. It is red. Its high is 50.10 and its low is 48.90. The candle before had its low at 49.40. So this candle closed below it.

• Its body is 1.00. Its whole range is 1.20. So the body is 83% of the candle. That is more than 35%.
• Say a usual candle is 1.50. Half of that is 0.75. The body, 1.00, is bigger.
• The RSI falls to 70.5. Two candles ago it was 77. So the slope is −6.5. On the candle before, the slope was 76 − 74 = +2. So the slope just turned down.
• The market is not quiet, and there was no SELL REACTION in the last 5 candles.

So ▼ SELL REACTION appears above the candle. The RSI is still 70.5, so the zone grows one more candle.

The dashboard shows Zone State 🟡 Approaching OB, because 70.5 is not above 75. Reaction shows 🔻 Sell Reaction. The Confidence is 0.7 (the RSI, just past 70) + 25 (the fast fall) + 20.8 (the large body) + 7 (normal market) = 53.5. The dashboard drops the decimals: 53 / 100, in yellow. The bar fills 5 of its 10 blocks.

Technical details

This part gives the exact rules, for readers who want them. Every rule runs on KAGAMI's servers, on closed candles only. The page only draws what the servers return.

The calculation

On every closed candle, oldest first, the servers work out:

1. RSI. Wilder's RSI over 14 closes. Then an EMA over 3 values. Its first value is the average of the first three RSI values. Below, "RSI" means this smoothed value.
2. Slope. slope = RSI now − RSI two candles ago.
3. ATR. Wilder's average true range over 14 candles. It is the usual size of a candle.
4. Volatility. ratio = ATR ÷ EMA 20 of the ATR. Below 0.75 is Low. From 0.75 to 1.4 is Normal. Above 1.4 is Explosive.
5. Trend. The EMA of the last 21 closes against the EMA of the last 55. Higher is Bullish, lower is Bearish, equal is Neutral.
6. Body. body = abs(close − open), range = high − low, body ratio = body ÷ range (0 when the range is 0).

The heat cloud

• Push up: RSI above 52 and slope above 0. Push down: RSI below 48 and slope below 0.
• Strength, from 0 to 1: min((RSI − 52) ÷ 22 + abs(slope) ÷ 8, 1) for a push up, min((48 − RSI) ÷ 22 + abs(slope) ÷ 8, 1) for a push down.
• A candle carries the cloud when it has a push, the volatility is not Low, and its body ratio is above 0.25.
• The band: for a push up, from high + 0.35 × ATR down to low − 0.18 × ATR. For a push down, from high + 0.18 × ATR down to low − 0.35 × ATR.
• Where it shows: a piece of cloud runs between two neighbouring candles that both carry the band of the same side. A single candle alone shows nothing.
• Colour: aqua #00BCD4 for a push up, orange #FF9800 for a push down. Each piece takes the transparency of the candle it ends on: min(round(85 − strength × 40) + 10, 88). That is 55% for the strongest push and 88% for the weakest.
• Shape: each piece has straight, parallel top and bottom edges. It runs through the middle of the band at both candles, and its height is the average of the two. The original's piece can be a little taller at one end. At each corner, the difference is at most a quarter of that change in height.

The zones

• Overbought while the RSI is 70 or more. On its first candle, a box from high − 0.15 × ATR up to high + 0.45 × ATR. It reaches to the next candle.
• On each next candle with the RSI still at 70 or more, the box reaches one candle further. Its top moves up to that candle's high + 0.45 × ATR if that is higher. Its bottom moves down to high − 0.15 × ATR if that is lower.
• When the RSI drops below 70, the box stops where it is and stays. The next time the RSI reaches 70, a new box starts.
• Oversold is the mirror image, while the RSI is 30 or less: from low − 0.45 × ATR up to low + 0.15 × ATR.
• Colours: overbought orange #FF9800 with a red #F23645 border, oversold aqua #00BCD4 with a teal #089981 border. The borders are 1 px at 70% transparency.
• Fill transparency: max(round(88 − strength × 35), 40), from 53% to 88%. The strength is min((RSI − 70) ÷ 30 + abs(slope) ÷ 10, 1), or min((30 − RSI) ÷ 30 + abs(slope) ÷ 10, 1) for oversold. The box takes the value of its latest candle.

The reactions

▼ SELL REACTION appears on a closed candle when all of these hold:

1. The RSI of the candle before was 70 or more.
2. The candle is red: it closed below its open.
3. The slope is weak (between −1.5 and 1.5), or it just turned down: below 0 now, 0 or more on the candle before.
4. The candle closed below the low of the candle before. Or it went above the high of the candle before and closed below that candle's open.
5. Its body ratio is 0.35 or more.
6. Its body is at least 0.5 × ATR.
7. The volatility is not Low.
8. The last SELL REACTION was more than 5 candles ago. A candle that met rules 1 to 7 during the wait gets no label. It does not restart the wait.

▲ BUY REACTION is the mirror image: the RSI of the candle before was 30 or less, the candle is green, the slope is weak or just turned up, and it closed above the high of the candle before (or went below the low of the candle before and closed above that candle's open). Rules 5 to 8 are the same, with its own wait.

The labels: ▼ SELL REACTION in a red #F23645 label (10% transparency) above the candle, at high + 0.6 × ATR. ▲ BUY REACTION in a teal #089981 label (10% transparency) under the candle, at low − 0.6 × ATR. White text, about 13 px.

The dashboard

Two columns and eight rows, for the last closed candle:

The confidence adds four parts, drops the decimals and stops at 100:

• RSI: in the overbought zone, (RSI − 70) ÷ 30 × 40, at most 40. In the oversold zone, (30 − RSI) ÷ 30 × 40, at most 40. Otherwise abs(RSI − 50) ÷ 20 × 20, at most 20.
• Slope: abs(slope) ÷ 5 × 25, at most 25.
• Body: body ratio × 25, at most 25.
• Volatility: 10 for Explosive, 7 for Normal, 3 otherwise.

The colours:

• The title is orange #FF9800, v1.3 and the row names are silver #B2B5BE.
• Momentum: aqua #00BCD4 for Bull Pressure, red #F23645 for Bear Pressure, grey #787B86 for Neutral.
• Zone State: orange #FF9800 in the overbought zone, aqua #00BCD4 in the oversold zone, grey #787B86 otherwise.
• Reaction: red #F23645 for Sell, green #00E676 for Buy, grey #787B86 for None.
• Volatility: yellow #FFEB3B for Explosive, grey #787B86 for Low, green #00E676 for Normal.
• Trend: green #00E676 for Bullish, red #F23645 for Bearish, grey #787B86 for Neutral.
• Confidence: green #00E676 from 75, yellow #FFEB3B from 50, grey #787B86 below 50. The bar has the same colours, but red #F23645 below 50.
• Background dark grey #363A45. Cell borders grey #787B86 at 35% transparency, the outer frame at 30%, both 1 px.
• Size and place: text of about 16 px. The table sits 6 px inside the top-right corner of the price pane, left of the price scale.

How many drawings stay

• Zones: the newest 500. Past 500, the oldest goes first.
• Labels: the newest 200. Past 200, the oldest goes first.
• Cloud: no limit.

The limits remove drawings only. The dashboard still counts every label for its wait.

Inputs

KAGAMI shows no inputs for this indicator. It always uses the original script's defaults, and none of them can be changed:

The zone strength 1.5 gives the zone's 0.45 × ATR (1.5 × 0.3) and 0.15 × ATR (1.5 × 0.1). These are fixed in the original script too: the 52 and 48 lines, the 5-candle wait, the EMA 20 of the ATR, the 0.75 and 1.4 volatility lines, and the cloud's and labels' distances.

When values change

• Only closed candles are judged. The candle still forming never counts. Nothing appears or moves in the middle of a candle.
• The page asks KAGAMI's servers again when a new candle closes (at most once every 2 seconds). It also asks every 60 seconds while the page is open and in view. And it asks when you add the indicator or change the symbol or timeframe.
• Each time, all drawings are worked out again from the loaded history. Only drawings that changed are redrawn.
• The cloud and the labels of closed candles don't change. The open zone's right edge moves one candle at each close. Its top, bottom and colour can change too.
• The dashboard changes once per closed candle.
• KAGAMI uses at most the latest 2,000 candles, so old candles drop off as new ones arrive. Drawings near the far left can then change or disappear.

Timeframes

• The rules count candles, not minutes or days. They are the same on every timeframe.
• Seconds timeframes (1, 5, 10, 15 and 30 seconds) exist for crypto only. Stocks and FX start at 1 minute.
• KAGAMI's stock data can include pre-market and after-hours candles. They count like any other candle.
• On a daily chart, a day's candle counts as closed once 24 hours have passed since it opened. For a US stock, that is midnight New York time, not the 16:00 close.
• A weekly candle counts as closed after 7 days. KAGAMI treats a monthly candle as 30 days long.

Differences from the original Pine script

KAGAMI draws the heat cloud, the zones, the reaction labels and the dashboard. It follows the original script's rules, order and default values. These are the differences:

• No inputs. Every input keeps the original script's default. You can't change any of them.
• Other displays. The original's Candle Glow (coloured candles), Vertical Flags (coloured columns behind the candles) and Off are not offered. KAGAMI always shows the RSI Heat Cloud, the original default.
• EMA lines. Not drawn. They are off by default in the original too.
• Aggressive mode. Not offered. It is off by default in the original too.
• Alerts. The original's three alerts (a sell reaction, a buy reaction, either one) are not available. KAGAMI's indicators raise no alerts.
• Closed candles only. On TradingView, the dashboard describes the candle still forming and changes tick by tick. A label can also show on it mid-candle, then vanish. KAGAMI waits for the close and describes the last closed candle.
• The cloud's shape. Each piece has parallel top and bottom edges, as described under [The heat cloud](#cloud). TradingView fills the exact shape between the two edges.
• Shorter history. KAGAMI starts its maths at the oldest of at most 2,000 loaded candles. TradingView usually has more history. The first label's wait, and zones near the far left, can differ.
• Exact limits. TradingView calls its 500 and 200 limits approximate. KAGAMI keeps exactly the newest 500 zones and 200 labels.
• Drawing tools. KAGAMI draws with the chart's own drawing tools. SELL REACTION is a balloon above the candle. BUY REACTION is a filled box under its point, with bold text and no pointer. The drawings are locked, are not saved, and hide or go with the indicator.
• The dashboard's look. Its text size is close to TradingView's Large, in KAGAMI's own font. The coloured symbols come from your device's emoji font, so they can look a little different.

Edge cases

• Fewer than 3 closed candles: nothing is drawn.
• The first 16 candles: the RSI has no value yet. Nothing is drawn but the dashboard.
• The first 18 candles: the slope has no value yet. The dashboard shows NaN / 100 and an empty bar in red.
• The first 32 candles: the volatility has no value yet. It counts as not Low, so the dashboard shows ✅ Normal. But the confidence gives it 3 points, not 7.
• The first 54 candles: the trend shows ⚪ Neutral.
• A zone on candles 17 and 18: its colour has no value yet, so the box has a border but no fill.
• A candle that doesn't move: open, high, low and close are equal. Its body ratio is 0, so it carries no cloud and gets no label.
• Gaps: the ATR includes gaps, as the true range uses the previous close. One gap candle can start or end a zone.
• Missing candles: a quiet market may skip a candle. The rules count the candles that exist.
• Hidden or removed: hiding the indicator hides everything, the dashboard too. Removing it removes everything.