In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
study(title="RSI Divergence Candles V0") src = input(close) fast_length = input(8) slow_length = input(55) smooth = input(10) overbought = input(70) oversold = input(30) fast_rsi = rsi(src, fast_length) slow_rsi = rsi(src, slow_length) smooth_fast_rsi = sma(fast_rsi, smooth) smooth_slow_rsi = sma(slow_rsi, smooth) plotcandle(smooth_slow_rsi, max(fast_rsi, slow_rsi), min(fast_rsi, slow_rsi), smooth_fast_rsi, title='rsi bars', color=smooth_fast_rsi>=smooth_slow_rsi?green:maroon) hline(overbought, color=black) hline(oversold, color=black)