Hi,
RSI is basically a relation of Upward Price to Downward Price change,means following PRICE,now BB one kind of Std Deviation form Mean(here Mov Avg of RSI).The basic scinitific domain used here is ,that in any data field (maybe population census,or say Maruti's sales fig,region wise ,model wise) when plotted ,there can be say a zone where majority of data clusters or a point can be found having the least distance from other sporadic points.After deriving that zone or point normally a Standard Deviation method is adopted to give a boundary of that zone/point so as to catch majority of the data within that boundary.We use BB on price to identify those points ,which were plotted outside ,once they start plotting outside than their historical boundary we assume then that a new trend has started,in the meantime the basic point/zone (here mov.avg of price) try to adjust itself so as to bring or tame those maverick points.(Here our trading strategy of getting 1 closing inside the band ) Now in this thread here we assume RSI's historical band & std deviation,will do the same as BB does to Price.However RSI itself is a way of expressing Price,means a DERIVATIVE of Price,we are again taking another expression or derivative of that derivative.Personally feel we r trying to tweak at the sake of tweaking,chances r we may throw the baby along with the bath tub water. Rather putting both the Price Derivative ,BB & RSI on 2 seperate window in the chart along with the Price ,& save as a template,then eye ball few charts to find out whether there is any correlation in these 2 price derivative,you may find some interesting things,that is what is known as a Story the chart is trying to tell you.These r my personal views.
Asish
