Icahns RSI Divergence

This is an optimized version of a popular RSI Divergence Detector with a bar color scheme based on the RSI's direction

RSI Divergence is a potent tool in identifying shifts in market momentum or trend reversals. A RSI momentum divergence occurs when there's a disagreement between the direction of the price and the RSI . For example, in an uptrend, a divergence occurs when price makes a higher high, but the indicator makes a lower low (i.e. Standard Bearish Divergence).

This indicator confirms the divergence on the 2nd candle close after the divergence is printed.

I've found that RSI div signals a shift in momentum the best on the 1H and 4H time interval.

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How to read the Indicator:

R = Regular
H = Hidden

Green divergences are bullish
Red Divergences are bearish

The candle colors are based on the current RSI value.

Light Blue: If RSI is above 70
Pink: If the RSI is below 30

Green: If the RSI is above 50 and below 70
Red: If the RSI is below 50 and above 30