Mastering the Self-Adjusting RSI: A Game Changer for Traders

Mike 2007.06.14 18:48 38 0 0
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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.

Self-Adjusting RSI Chart

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.

RSI Bands Adjustment

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