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RSI indicator(s)

Moderators: mntiwana, mrtools

#1

The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The indicator should not be confused with relative strength.

The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price. The RSI computes momentum as the ratio of higher closes to lower closes: stocks which have had more or stronger positive changes have a higher RSI than stocks which have had more or stronger negative changes.

The RSI is most typically used on a 14-day timeframe, measured on a scale from 0 to 100, with high and low levels marked at 70 and 30, respectively. Shorter or longer timeframes are used for alternately shorter or longer outlooks. More extreme high and low levels—80 and 20, or 90 and 10—occur less frequently but indicate stronger momentum.

The relative strength index was developed by J. Welles Wilder and published in a 1978 book, New Concepts in Technical Trading Systems, and in Commodities magazine (now Futures magazine) in the June 1978 issue. It has become one of the most popular oscillator indices.

The RSI provides signals that tell investors to buy when the currency is oversold and to sell when it is overbought.

Calculation

For each trading period an upward change U or downward change D is calculated. Up periods are characterized by the close being higher than the previous close:

U={\text{close}}_{{\text{now}}}-{\text{close}}_{{\text{previous}}}
D=0

Conversely, a down period is characterized by the close being lower than the previous period's close (note that D is nonetheless a positive number),

U=0
D={\text{close}}_{{\text{previous}}}-{\text{close}}_{{\text{now}}}

If the last close is the same as the previous, both U and D are zero. The average U and D are calculated using an n-period smoothed or modified moving average (SMMA or MMA) which is an exponentially smoothed Moving Average with ? = 1/period. Some commercial packages, like AIQ, use a standard exponential moving average (EMA) as the average instead of Wilder's SMMA.

Wilder originally formulated the calculation of the moving average as: newval = (prevval * (period - 1) + newdata) / period. This is fully equivalent to the aforementioned exponential smoothing. New data is simply divided by period which is equal to the alpha calculated value of 1/period. Previous average values are modified by (period -1)/period which in effect is period/period - 1/period and finally 1 - 1/period which is 1 - alpha.

The ratio of these averages is the relative strength or relative strength factor:

RS={\frac  {{\text{SMMA}}(U,n)}{{\text{SMMA}}(D,n)}}

If the average of D values is zero, then according to the equation, the RS value will approach infinity, so that the resulting RSI, as computed below, will approach 100.

The relative strength factor is then converted to a relative strength index between 0 and 100:[1]

RSI=100-{100 \over {1+RS}}

The smoothed moving averages should be appropriately initialized with a simple moving average using the first n values in the price series.

more details



#3
This was posted already on some forums, but this is an upgraded version
Added :
the set of 22 price typesoption to have rsx of non lag ma (so, having an rsx(oma) of non lag ma)some internal code upgrade
 
nlm_ift_rsx.png
nlm_ift_rsx.png (119.91 KiB) Viewed 7495 times
Attachments
NonLag_Inverse_fisher_transform_of_RSX.mq4
(15.43 KiB) Downloaded 571 times

#4
mladen wrote:This was posted already on some forums, but this is an upgraded version
Added :
the set of 22 price typesoption to have rsx of non lag ma (so, having an rsx(oma) of non lag ma)some internal code upgrade
 
Dearest MLADEN
A good addition in rsx IFT series with upgradation code and 22 prices.
regards
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.


#6
Rsi(oma)
it can calculate rsi or rsi of average7 types of rsi(oma) can be calculated RSIRSXCuttler's RSIHaris' RSIRapid RSISlow RSIEhlers' smoothed RSIit can have floating or fixed levelsaverages that can be used are the standard 4 typesusual 22 types of pricesusual set of alertsmulti time frame alreadyUpgraded code (some issues solved, code optimized and simplified, and so on ...)
rsi(oma)_2.png
rsi(oma)_2.png (111.07 KiB) Viewed 7458 times
Attachments
Rsi(oma).mq5
(50.75 KiB) Downloaded 463 times

#7
Thank you one of the best trading indicators
If it had been linked with the MACD and Bollinger Band

#8
RSI with Fibonacci auto channel

It is using a floating levels for extremes, and the rest is divided into Fibonacci zones
One of the 7 types of rsi can be calculated :
RSIRSXCuttler's RSIHaris' RSIRapid RSISlow RSIEhlers' smoothed RSI
Attachments
rsi with fibo.png
rsi with fibo.png (119.96 KiB) Viewed 7395 times
Rsi with Fibonacci auto channel 2.mq5
(37.83 KiB) Downloaded 408 times

#9
thank you for these Mladen


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