tomm1111
202 posts
msg #66066
- Ignore tomm1111 |
8/11/2008 1:36:04 PM
Anybody know the actual rsi(2) equation SF uses? Using only 2 bars returns alot of 0's and 100's, however, that is not what a SF rsi(2) filter returns.
The following rsi equation doesn't work.
RSI = 100 - 100 / (1 + RS)
RS = AG / AL
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tomm1111
202 posts
msg #66094
- Ignore tomm1111 |
8/11/2008 8:33:06 PM
Bump.
Smart guys, SF. What's the actual RSI(2) equation used?
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tomb
267 posts
msg #66097
- Ignore tomb |
8/11/2008 9:42:20 PM
Hi,
The RSI is a cumulative measure where the current value is based on all previous values. On StockFetcher, a measure such as this is "seeded" with at least 2 years of historical values to compute the most recent value. In other words, an RSI(2) is not just based on the last 2 periods (as a simple moving average would be.)
As you noted, Wilder's RSI formula is:
RSI = 100 - (100 / (1 + (AG/AL)))
However, note that the 'AG' and 'AL' components are not derived from simple moving averages, but each are computed using Wilder's smoothing method:
X(i) = [X(i-1)(n-1) + Y(i)] / n
Where X(i) is your current average, and Y is your input data series. The above is very similar to an EMA, and as you can see requires all previous values to compute the current value.
Tom
StockFetcher.com Support
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tomm1111
202 posts
msg #66099
- Ignore tomm1111 |
8/11/2008 10:52:31 PM
Cool. Thanks Tomb for the reply.
I think I remember running into that equation at some point. I'm going to look into it further.
Tom
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