RVSI & MACD Confluence Background

This indicator colors the background in vertical (green/red) stripes to indicate if the current trend is possibly bull / bear

A region where the background is not colored indicates that the present trend can not be identified

The algo combines the RVSI (Relative Volume Strength Index {ref fract} ) and the MACD

The Relative Volume Strength Index has been adapted to include 2 moving averages, one fast and one slow

This same fast slow lookback length is applied to the MACD for simplicity

What's interesting is that there is a very strong confluence between the MACD and RVSI, as the MACD is obtained from 'price action only' and the RVSI from the 'volume only'

So a break in confluence of these two might suggest that the current trend is weakening in confidence or can not be clearly identified

Generally, a green background means consider going long ie price trend is rising

A red background means consider going short ie price trend is falling

An absent background color means - consider exiting current trade or wait to get into a new trade

Best Regards, MoonFlag - and a special thanks/mention to 'fract' for the RVSI algo this is derived from

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