Advantage RSIFull range of possibilities



Full range of possibilities
Every trader knows that Relative Strength Index (RSI) oscillates between 0 and 100. And pretty much every trader knows that when 14-period RSI goes above 70 market is overbought and if it drops below 30 market is oversold. At least this is what the books say.

Closer look reveals that only RSI(2) gets readings close to 0 or 100. If we take most popular RSI(14) we will rarely get the reading above 85 or below 15, and RSI(30) will barely go above 75 or below 25. Therefore oversold and overbought zones that are 30/70 for RSI(14) will almost never be reached by RSI(30) and are frequently crossed by RSI(2). So comparing short-/mid-/long- term readings of RSI gives no credible information to the trader.

Idea behind developing Advantage RSI was an adjustment of regular RSI to get normalized readings regardless of calculation period. This way trader can compare, add, subtract or average RSI readings of different periods, getting the full picture of current market situation. Another important feature of Advantage RSI is the possibility of going below 0 or above 100. This will happen very rarely, but will warn a trader of extreme market conditions.

Advantage RSI is created by traders for traders. No high science behind it. Just some mathematical calculations, years of market experience and desire to make trading easier.

Advantage RSI package includes single period Advantage RSI, Ultimate Advantage RSI (weighted average of short/mid/long term Advantage RSI and Advantage RSI Adapted Moving Average.

Advantage RSI parameters:
RSI period
Overbought level
Oversold level

Advantage Ultimate RSI parameters:
RSI short term period
RSI medium term period
RSI long term period
Short term weight
Medium term weight
Long term weight
Overbought level
Oversold level

Advantage RSI AMA parameters:
RSI period
Adjustment sensitivity


Soon Advantage RSI in Tradestation Store.



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