RSI has inbuilt defects
1.RSI READING CAN STAY OVERSOLD OR OVERBOUGHT FOR A LONG PERIOD OF TIME
2 RSI MEASURES CURRENT STRENGTH OF A STOCK RELATIVE TO ITS PAST PRICE
added later
RSI is only bothered about that same stock.
what happens in the rest of trading world,Rsi doesnt see.
This is where RS comes into picture
HOW to overcome these defects?
use stock price comparison with its sector index or overall market ndex.
as long as overall strength rs is ok and up no need to urgently exit the trade.
A TWIST ON RSI A NEW WAY
USE RS90 DAYS AS A HISTOGRAM
RSI MUST BE USED ALONG WITH RS,
RS IS MORE RELIABLE COMING TO WHEN TO EXIT TRADES.
A GREEN HISTOGRAM OUTPERFORMING
A RED HISTOGRAM SHOWS UNDERPERFORMING
I wanted the afl to be coded for this RS histogram.
Request the afl xperts to please help
Thanks in advance
the code given by jeff tompkins,involves use of log function
RSLENGTH=90
EMALENGTH=3
STOCKPRICE=CLOSE OF DATA1
REFERENCEPRICE=CLOSE OF DATA2
LOGVAL=LOG(STOCKPRICE/REFERENCE PRICE)
RS=XAVERAGE(LOGVAL - LOGVAL(LENGTH),EMALENGTH)*100
1.RSI READING CAN STAY OVERSOLD OR OVERBOUGHT FOR A LONG PERIOD OF TIME
2 RSI MEASURES CURRENT STRENGTH OF A STOCK RELATIVE TO ITS PAST PRICE
added later
RSI is only bothered about that same stock.
what happens in the rest of trading world,Rsi doesnt see.
This is where RS comes into picture
HOW to overcome these defects?
use stock price comparison with its sector index or overall market ndex.
as long as overall strength rs is ok and up no need to urgently exit the trade.
A TWIST ON RSI A NEW WAY
USE RS90 DAYS AS A HISTOGRAM
RSI MUST BE USED ALONG WITH RS,
RS IS MORE RELIABLE COMING TO WHEN TO EXIT TRADES.
A GREEN HISTOGRAM OUTPERFORMING
A RED HISTOGRAM SHOWS UNDERPERFORMING
I wanted the afl to be coded for this RS histogram.
Request the afl xperts to please help
Thanks in advance
the code given by jeff tompkins,involves use of log function
RSLENGTH=90
EMALENGTH=3
STOCKPRICE=CLOSE OF DATA1
REFERENCEPRICE=CLOSE OF DATA2
LOGVAL=LOG(STOCKPRICE/REFERENCE PRICE)
RS=XAVERAGE(LOGVAL - LOGVAL(LENGTH),EMALENGTH)*100
Last edited: