RSI confirms trend with Williams (W%R) – Java Indicator – TradingView

This is the “RSI Confirmation Trend with Williams (W%R)” indicator.
This is a modification of the “RSI Trends” indicator by zzzcrypto123.

What is the Relative Strength Index (RSI)?
The Relative Strength Index (RSI) is a momentum indicator used in technical analysis. The RSI measures the speed and magnitude of a security's recent price changes to evaluate over- or undervalued conditions in that security's price.

What is Williams %R?
Williams %R, also known as Williams Percent Range, is a type of momentum indicator that ranges between 0 and -100 and measures overbought and oversold levels. The Williams %R can be used to find entry and exit points in the market. The indicator is very similar to the Stochastic Oscillator and is used in the same way. Developed by Larry Williams, it compares a stock's closing price to the high-low range over a specific period of time, typically 14 days or periods.

How does “RSI confirm trend with Williams (W%R)” work?
This indicator combines the dynamics of RSI and Williams %R by adding upper and lower thresholds. When the thresholds are exceeded, the color of this indicator changes from gray to green or red.

What are the thresholds?
The default RSI thresholds are 55 and 45. These values ​​are configurable.
The default Williams %R thresholds are 80 and 20. These values ​​are configurable and positive so they can be plotted against the RSI line.

How to use?

• When the RSI crosses the upper/lower thresholds, the color of the RSI line changes from gray to a lighter green/red.
  
• When the Williams %R crosses the upper/lower thresholds, the RSI color changes to a darker green/red color, indicating strong momentum in that direction.
  
• If the RSI color is gray, it means that the RSI and Williams %R thresholds are not exceeded, which can also mean that there is no trend or consolidation.
  

The Williams %R line is not displayed by default, but can be enabled using the checkbox on the Style tab.
This indicator “RSI Confirmation Trend with Williams (W%R)” can be combined with other technical indicators to verify the idea behind this theory.

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Disclaimer

The information contained in this indicator does not constitute financial advice or a solicitation to buy or sell securities of any kind.
My scripts/indicators/ideas are for educational purposes only!