Showing posts with label RSI-14. Show all posts
Showing posts with label RSI-14. Show all posts

Friday, September 14, 2007

How do we trade with the RSI-14 strategy?

The RSI-14 is a 14-period RSI trading strategy, which can be calculated into a number that ranges from 0 to 100.

When the number of RSI-14 rises above 30 it is considered a bullish sign for the stock, therefore, our system will create a BUY signal the stock.



When the number of RSI-14 falls under 70, it is considered a bearish sign for the stock, and our system will create a SELL signal for the stock.

How to calculate RSI-14?

RSI-14 = 100 – 100 / (1 + RS14) :


RS14 = Avg.Up14 / Avg.Dn14 :


Avg.Up14 = Average( ChangeUp for 14 days ) :


Avg.Dn14 = Average( ChangeDn for 14 days ) :


ChangeUp = IF ( Change > 0, Change, 0 ) :


ChangeDn = IF ( Change <=0, ABS(Change), 0) :


Change = Today Close – Yesterday Close :

RSI-14 Relative Strength Index

A technical momentum oscillator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of a stock.

As of today, we track and calculate the stock performance of a period of 14 days RSI, which is called RSI-14 strategy in our system.