In the February edition of Technical Analysis of STOCKS & COMMODITIES, David Sepiashvili introduced a groundbreaking concept for adjusting the overbought and oversold levels of the Relative Strength Index (RSI). What’s really exciting about this method is its versatility; it can be applied across various market conditions without being tied to a specific calculation period. This adaptability makes it a breeze to use the indicator in multi-timeframe analysis.
The article showcased two distinct algorithms for tweaking the width of the overbought and oversold bands for the RSI, effectively drawing the RSI along with these self-adjusting levels.
When the MA-Method parameter is set to true, the bands are calculated using a moving average-based algorithm. Conversely, if it's set to false, an alternative standard deviation algorithm comes into play.
Comments 0