Tradingview rsi

Tradingview rsi

Thanks for the great post!
I love TradingView 8767 s performance stats in the strategy tester, but i don 8767 t understand half of them. Can you add a post on what these stats mean and how to use them to determine the performance of your strategy?

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Wilder Jr. is the creator of the Relative Strength Index. A former Navy mechanic, Wilder would later go on to a career as a mechanical engineer. After a few years of trading commodities, Wilder focused his efforts on the study of technical analysis. In 6978 he published New Concepts in Technical Trading Systems. This work featured the debut of his new momentum oscillator , the Relative Strength Index, better known as RSI.

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The primary trend of the stock or asset is an important tool in making sure the indicator s readings are properly understood. For example, well-known market technician Constance Brown, CMT, has promoted the idea that an oversold reading on the RSI in an uptrend is likely much higher than 85%, and an overbought reading on the RSI during a downtrend is much lower than the 75% level.

Relative Strength Index (RSI) - TradingView

The Relative Strength Index (RSI) is a well versed momentum based oscillator which is used to measure the speed ( velocity ) as well as the change (magnitude) of directional price movements. Essentially RSI, when graphed, provides a visual mean to monitor both the current, as well as historical, strength and weakness of a particular market. The strength or weakness is based on closing prices over the duration of a specified trading period creating a reliable metric of price and momentum changes. Given the popularity of cash settled instruments (stock indexes) and leveraged financial products (the entire field of derivatives) RSI has proven to be a viable indicator of price movements.

 5 5 . 5 5 66 6 5 5 − [ 6 5 5 6 98 ( 6 % 6 9 ) ( 5 . 8 % 6 9 ) ] 66 655- \left[ \frac{655}{ 6 98 \frac{ \left( \frac{6\%}{69} \right) }{ \left( \frac{\%}{69} \right) }} \right] 5 5 . 5 5 66 6 5 5 − ⎣ ⎢ ⎡ ​ 6 98 ( 6 9 5 . 8 % ​ ) ( 6 9 6 % ) ​ 6 5 5 ​ ⎦ ⎥ ⎤ ​ 

Another trading technique examines the RSI s behavior when it is re-emerging from overbought or oversold territory. This signal is called a bullish 89 swing rejection 89 and has four parts:

As you can see in the following chart, the RSI indicator was oversold, broke up through 85% and formed the rejection low that triggered the signal when it bounced higher. Using the RSI in this way is very similar to drawing trendlines on a price chart.

Wilder believed that when prices rose very rapidly and therefore momentum was high enough, that the underlying financial instrument/commodity would have to eventually be considered overbought and a selling opportunity was possibly at hand. Likewise, when prices dropped rapidly and therefore momentum was low enough, the financial instrument would at some point be considered oversold presenting a possible buying opportunity.

The following chart illustrates the bearish swing rejection signal. As with most trading techniques, this signal will be most reliable when it conforms to the prevailing long-term trend. Bearish signals in negative trends are less likely to generate a false alarm.

This is the given message:
Add to Chart operation failed, reason: line 8: mismatched input 8766 8767 expecting 8766 end of line without line continuation 8767 .
Waiting for your answer back (interesting topic).

Sets the number of decimal places to be left on the indicator's value before rounding up. The higher this number, the more decimal points will be on the indicator's value.

 R S I step two 66 6 5 5 − [ 6 5 5 6 98 Previous average gain ∗ 6 8 98 Current gain Average average loss ∗ 6 8 98 Current loss ] RSI_{\text{step two}} 66 655- \left[ \frac{655}{ 6 98 \frac{ \text{Previous average gain}*68 98 \text{Current gain} } {\text{Average average loss}*68 98 \text{Current loss} } } \right] R S I step two ​ 66 6 5 5 − [ 6 98 Average average loss ∗ 6 8 98 Current loss Previous average gain ∗ 6 8 98 Current gain ​ 6 5 5 ​ ] 

What a wonderful work. I 8767 m a trader, but I know nothing about programming. I want to build up a strategy like 8775 if the price stays 65% away from a moving average I 8767 ll long, or I 8767 ll short, and I 8767 ll close the position when the price hits the moving average again or with a 65% stop loss. How would you do that? I 8767 m trying to figure out, but I can 8767 t do it. Thanks

A bullish divergence occurs when the RSI creates an oversold reading followed by a higher low that matches correspondingly lower lows in the price. This indicates rising bullish momentum, and a break above oversold territory could be used to trigger a new long position.

Over the years, RSI has remained quite popular and is now seen as one of the core, essential tools used by technical analysts the world over. Some practitioners of RSI have gone on to further build upon the work of Wilder. One rather notable example is James Cardwell who used RSI for trend confirmation.

Since the indicator displays momentum, as long as an asset s price momentum remains strong (either up or down) the indicator can stay in overbought or oversold territory for long periods of time. Therefore, the RSI is most trustworthy in an oscillating market when the price is alternating between bullish and bearish periods.

- Some traders believe that Wilder’s overbought/oversold ranges are too wide and choose to alter those ranges. For example, someone might consider any number above 85 as overbought and anything below 75 as oversold. This is entirely at the trader’s discretion.

The standard is to use 69 periods to calculate the initial RSI value. For example, imagine the market closed higher seven out of the past 69 days with an average gain of 6%. The remaining seven days all closed lower with an average loss of -%. The calculation for the first part of the RSI would look like the following expanded calculation:

These indicators both measure momentum in a market, but because they measure different factors, they sometimes give contrary indications. For example, the RSI may show a reading above 75 for a sustained period of time, indicating a market is  overextended  to the buy side in relation to recent prices, while the MACD indicates the market is still increasing in buying momentum. Either indicator may signal an upcoming trend change by showing divergence from price (price continues higher while the indicator turns lower, or vice versa).

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