OB and OS
All traders pay attention to when certain popular indicators move into overbought or oversold territory. When this happens, they are on the alert for price to reverse or flatten.
The 2 most popular indicators are the Stochastics and Relative Strength Index.
The StochRSI EFS study will color the background of the chart with a Reddish color for overbought and a Bluish color for oversold.
For further information on the general use of Stochastics or RSI, please do an internet search on these topics and you will find plenty.
User Adjustable Edit Studies Options
You can select the parameters for both the Stochastic and RSI as well as the threshold values for the colored bar alerts for each of the studies.
You can also choose to have just one of the studies to be included in the color alerts or both of them. When choosing 'Both', you will receive the colored alert if either of them moves into the threshold zones.
Alert colors are also user adjustable when you scroll down in this edit studies window.
Just remember, the purpose of this script ( and any other efs script for that matter ) is to alert you to mathematical conditions occurring in the price action. This is never a guarantee that a reversal will take place. Use the information along with your experience and other studies to make decisions.
Example: Midcap Futures 89T Chart
