Stochastic RSI | Chill-Zone |

Stochastic RSI | Chill-Zone |
This indicator combines Stochastic RSI with a dynamic Chill-Zone that highlights where momentum is holding or starting to shift. It helps filter out noisy %K moves and gives a clearer view of the trend and sustained directional bias rather than short-term momentum spikes like the standard Stoch.

How the Chill-Zone works
The Chill-Zone is built from the %K line of the Stochastic RSI:

- It measures how much %K moves bar to bar (absolute difference).

- This is smoothed using a running moving average (like an ATR for %K).

- A short SMA (2-period) tracks the base trend level.

- When %K breaks beyond the trend level, the zone flips between bullish and bearish.

The zone is shown as a fill between %K and a trailing EMA of %K (set by the user)

The zone color shows the current trend bias:

Blue fill = bullish zone

Red fill = bearish zone

Divergence spotting:
When price keeps rising but the Chill-Zone is red (bearish), it can signal that momentum isn’t supporting the price move — a possible warning of an upcoming reversal.
Similarly, if price keeps falling but the Chill-Zone is blue (bullish), it may point to weakening downward momentum and potential for a reversal upward.


Disclaimer
This is not a standalone signal tool. It’s designed to be used with other technical analysis tools as part of a broader strategy. Always combine with price action, S/R levels, or other indicators for confluence before making trade decisions.