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RSI 2...Moving up or down Rate this Topic:
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captvict
Posted : Monday, August 5, 2013 3:30:07 PM
Registered User
Joined: 1/7/2006
Posts: 6

Thanks ahead of time....Many books/topics are now discussing the power of the RSI 2...is it possible to do a screen for stocks moving up from oversold or down from overbought  RSI readings...was looking for a one or 2 day move  up/down to give some confirmation..that security is moving away from RSI  overbought/sold condition....Thanks

Bruce_L
Posted : Monday, August 5, 2013 3:50:45 PM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

A Wilder's Smoothed RSI will move up when price moves up and move down when price moves down. So if you wanted to check that RSI has moved down, you can just write:

C < C1

Moving down for 2-bars in a row is just:

C < C1 AND C1 < C2

Checking for one or two days:

C < C1 OR (C < C1 AND C1 < C2)

Is just the same as checking for 1 day:

C < C1

Since you want this to be happening from an "overbought" condition, we would need to check for Wilder's RSI to be greater than 70 during at least one of the two previous bars:

C < C1 AND (50 * (C1 - XAVGC3.2) / 2 / (.5000305 * (ABS(C1 - C2) + .5 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14) + .5 * (ABS(C14 - C15)))))))))))))))) + 50 > 70 OR 50 * (C2 - XAVGC3.3) / 2 / (.5000305 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14) + .5 * (ABS(C14 - C15) + .5 * (ABS(C15 - C16)))))))))))))))) + 50 > 70)

Moving up from less than 30 just involves reversing the < and > signs and replacing 70 with 30:

C > C1 AND (50 * (C1 - XAVGC3.2) / 2 / (.5000305 * (ABS(C1 - C2) + .5 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14) + .5 * (ABS(C14 - C15)))))))))))))))) + 50 < 30 OR 50 * (C2 - XAVGC3.3) / 2 / (.5000305 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14) + .5 * (ABS(C14 - C15) + .5 * (ABS(C15 - C16)))))))))))))))) + 50 < 30)

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