RMD Histogram

The RMD Histogram (RSI–Momentum Differential) is a clean, decision-focused oscillator designed to highlight the relationship between RSI strength and price momentum. Instead of plotting traditional lines, it uses a color-coded histogram to show which force is currently dominant, helping traders quickly identify bullish, bearish, or neutral conditions without clutter.

The indicator compares a smoothed Relative Strength Index (RSI) against a normalized and smoothed Momentum calculation derived from price change over a defined lookback period. When RSI is stronger than momentum, the histogram turns green, signalling bullish pressure. When momentum dominates RSI, the histogram turns red, indicating bearish pressure. When both values are closely aligned, gray bars appear, reflecting market balance or consolidation.

By normalizing both components onto a comparable scale and applying light smoothing, the RMD Histogram reduces noise and false flips, making it suitable for both scalping and swing trading across multiple timeframes. An optional alert system notifies you when a confirmed signal appears on a closed candle.

How to Use

• Green bars (RSI > Momentum): Bullish bias. Look for buy setups, trend continuations, or confirmation with price action and support levels.
• Red bars (RSI < Momentum): Bearish bias. Favor sell setups, pullback entries, or downside continuations.
• Gray bars (Equal): Neutral phase. Market is undecided—best used as a warning to stay out or wait for confirmation.

Best practices:

• Use the histogram direction as a trend filter, not a standalone entry.

• Combine with structure, key levels, or candles for higher-probability trades.

• Higher timeframes give stronger bias; lower timeframes provide timing.

• Alerts are based on closed candles to avoid repainting signals.

RMD Histogram excels at answering one key question quickly: who’s in control right now—buyers or sellers?

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