The RSI Liquidity Zones indicator identifies and plots price levels where the Relative Strength Index (RSI) previously reached oversold (e.g., 30) or overbought (e.g., 70) levels. These levels are key liquidity zones, representing areas where significant market activity occurred due to price reacting strongly to RSI extremes.
By automatically detecting these levels and marking them on the chart, the RSI Liquidity Zones indicator provides traders with a powerful tool to anticipate potential price reactions, reversals, or breakout opportunities in the future. It simplifies liquidity zone identification, helping traders focus on actionable price levels tied to RSI dynamics.
Key Features:
- Automatic RSI Zone Detection: Marks price levels where RSI previously touched oversold/overbought thresholds or user-defined levels.
- Customizable Levels: Allows traders to define their own RSI thresholds for oversold and overbought conditions.
- Real-Time Updates: Dynamically adjusts and plots levels as new RSI extremes occur.
- Liquidity Insights: Highlights areas with high potential for price reactions due to historical RSI-based liquidity.
- Cross-Market Versatility: Works seamlessly with any market, including Forex, crypto, stocks, and indices.
The RSI Liquidity Zones indicator bridges the gap between momentum and price action, equipping traders with a clear, data-driven view of key price levels. Whether you’re trading reversals, pullbacks, or breakouts, this tool ensures you never miss significant liquidity zones tied to RSI movements.