Traditional interpretation and usage of the are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An reading of 30 or below indicates an oversold or undervalued condition...more here.
*This indicator uses standard settings of a 14-period lookback with a midline of 50, overbought level of 70 and oversold level of 30.
This indicator has been modified to include a of the , adjustable overbought and oversold horizontal lines, a color-changing line, color-filled horizontal levels and color-filling the space between the and .
-This ( ) is set to a lookback period of 14 and is plotted as a white line. As the moves above and below the the color of the changes; when above the the is lime, when below he the is pink. Lime indicates momentum for , pink indicates momentum for .
-When the line is above 70 the and background both turn yellow, this indicates overbought conditions.
-When the line is below 30 the and background both turn red, this indicates oversold conditions.
-The backgrounds fill the levels the is trading between and can be turned on/off.
-The space between the and is filled and can be turned on/off.
-The line can be set to solid or multi-color.
-The horizontal lines can be adjusted and turned on/off.
-The can be adjusted.
For crypto or volatile markets, overbought and oversold levels of 80 and 20 are recommended.