Modified RSI

Hi folks,
I played around with the rsi, because it's one of the better indicators to base a system on (combined with others). It's not hi-tech, but probably worth to have a look at.

SetChartOptions(0,0,chartGrid20 |chartGrid50 |chartGrid80);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} < open %g > < high %g > < low %g > < close %g > (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
SetChartBkColor(ParamColor("Outer panel color ",colorBlack)); // color of outer border
SetChartBkGradientFill( ParamColor("Inner panel color upper half",colorBlack),
ParamColor("Inner panel color lower half",colorDarkTeal)//color of inner panel
,ParamColor("behind Text Color", colorBlack));
GraphXSpace=5;

Hc=(O+H+L+C)/4;

Ho = AMA( Ref( Hc, -1 ), 0.5 );

pds = Optimize("pds ",Param("pds ",5,1,15,1),5,5,1);
myArray = (RSI( pds )+ RSIa( Ho,pds ) + Ref(RSIa(Ho,pds),-3))/3 ;
Plot( myArray , " RSI ", IIf( myArray >Ref(myArray ,-1), colorGreen, colorRed ));
Plot(80,"RESISTENCE",colorRed, styleLine|styleDashed | styleThick);
Plot(50,"",colorWhite, styleLine|styleDashed | styleThick);
Plot(20,"SUPPORT",colorYellow, styleLine|styleDashed | styleThick);

pl post chart, results and methods of trading.

here is a chart, based on AEX, with default RSI below, and modified RSI in the middle.

thx it was so good ,continue to yor work:clapping:

somehow I still believe this rsi is very good!
Test it with drawing lines (for a uptrend, 2x support to find resistence for next top) works pretty good.
It shows, that with the gap code, and pratice, it's possible to pick excellent buy en sell points.
Next work will be to automate drawing trendlines, and buy/sell on break

This new rsi looks to be quite perfect

here's a link
but what the heck, total sum of all pictures is 100kb?
I had to remove my previous pic, to upload thisone!

anyway, this is a bit how it works.
showed is the dutch aex index (in futures each point equals 200 euro), last thursday they opend with a gap down, which made it a perfect buying opportunity! But it's necessery to take profits in time and not be too greedy!
Also it's hard to buy, when many analyst are saying we could go down, we have a top etc.!
Just have a look. Maybe you think those lines are bs. But on the other hand, if you master the art of drawing, you can pick excellent spots!
Especially when the index is near a line, and they gap towards the line , that means a low risk entry.

thanks for this modified RSI

topic moved to http://www.wisestocktrader.com/