RSI (Moomentum Pinball) Stratergy

Discussion in 'Advanced Trading Strategies' started by pat.harsh, Jul 19, 2010.

  1. pat.harsh

    pat.harsh New Member

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    Hi,

    I was reading "Street Smart" by Linda Raschke and i cam across this,

    "There are lots of tricks one can do with short-term rates of change. This Pattern uses a one-period rate of change or "momentum" function. This is simply, the difference between today's close and yesterday's close. (i.e., if today;,, closing price was 592 and yesterday's closing price was 596, the
    difference is -4.) A three-period RSI of this one period change is calculated. (Most software charting packages allow the user to do studies on studies in just this way.) "

    Can anyone explain in simple words on how do i calculate Three Period RSI?

    2) Also what is a "three-period RSI of a one-period rate of change (the daily net change)"?

    Ps: A Formula to calculate will also Help.

    Thanks,
    Harshit Patel
     
  2. rkkarnani

    rkkarnani Well-Known Member

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    No idea how it can be done manually ,i.e in a spread sheet, but most TA softwares like Metastock etc. have built in indicators to plot 3 period (or for that matter any period) RSI on a chart. If you plot a 1 period ROC(this again is built in) and then on it plot a 3 period RSI, you get 3 period RSI of 1 period ROC.
     
  3. rigel

    rigel New Member

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