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<A
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<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=AR.Holzwarth@xxxx
href="">AR.Holzwarth@xxxx
To: <A title=amibroker@xxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Wednesday, October 10, 2001 3:12
PM
Subject: Re: [amibroker] Re: Modified
RSI
I would like to understand the definition of RSI in order to
follow thethread. Could you please explain what (up/down)(last x) means
exactly andwhat the "normal " definition of RSI is?Thank
you.Al----- Original Message -----From: "server not
recognized" <<A
href="">winchp@xxxx>To:
<<A
href="">amibroker@xxxxxxxxxxxxxxx>Sent:
Wednesday, October 10, 2001 8:49 AMSubject: Re: [amibroker] Re: Modified
RSI> Dimitri,>> What you describe is not what I
meant.. The rsi formula>> rsi =
100-(100/(1+(up/down)).>> is the fundamental
problem.>> As up tends to zero, up/down tends to zero and rsi
tends to 0> as down tends to zero, up/down tends to infinity and rsi
tends to 1.>> The characteristic of these reciprocal type curves
is long, unresponsivetails that lead to the rsi being unresponsive as
the> numerator or denominator tends to zero. All the sensitivity
is at the 50%mark but you are trying to make decisions in the
rapidly> declining sensitivty region.>> I suggest the
nicety of limit bands be discarded entirely and the rsi bestructered as
something else entirely, so that:>> it has no
limits,> crosses zero> and can be equally positive and
negative.>> For example, and I make this up in my head without
checking first,>> modrsi = up(last
4)/down (last15) - down(last4)/up(last15)>> or closer to the
original which I think will tone it down some. (if notreverse the order -
put the last14/last3)>> modrsi =
100-(100/(1+(up/down)(last3)/(up/down)(last14))).>> I am
suggesting to be radical and not simply rearrage or blend outcomesfrom
various established indicators, but break them open> completely an
re-cast their principles.>> P>>> -----
Original Message -----> From: "DIMITRIS TSOKAKIS" <<A
href="">TSOKAKIS@xxxx>> To:<<A
href="">amibroker@xxxxxxxxxxxxxxx>>
Sent: Wednesday, October 10, 2001 3:55 PM> Subject: [amibroker] Re:
Modified RSI>>> > I have always the alternative of
Normalization, exposed here in some> > earlier post, ie>>
NormRSI=100*(RSI-RSImin)//RSImax-RSImin)> > which fit better in
[0,100] band.> > I think that this new idea of Modified RSI is a
better approach.> > I will revert after more tests.> >
Thank you for hint.> > Dimitris Tsokakis> > --- In <A
href="">amibroker@xxxx..., "server not recognized" <<A
href="">winchp@xxxx...> wrote:> > >
Dimitri,> > >> > > Constance Brown in her book
"Technical Analysis for the Trading> > Professional", advocatesthat
the 30/70 is not appropriate as> > > constants, and should be
modified depending upon recent history.> > For example after anRSI
> 70 period then a decline to 40 is> > > significant and vice
versa, i.e 30/70 shpould be applied with> > judgement.> >
>> > > Secondly the non zeroing of RSI and its lack of
sensitivity beyond> > the 70/30 is a fault with its ideal of
normalising. Constances> > > suggested opened the doorto
eve better understanding for me. I> > would suggest that
rather than using the RSI() supplied that you> > > play around
with actual formula and try and achieve the following:> >
>> > > no upper/lower limit,> > > able to cross
zero> > > can have negative numbers> > >>
> > I have done this with ADX with some satisfaction. I would
also> > suggest that additonal terms can be included inside theRSI
formula> > > to increase sensivity to certain events when they
are present. I> > would also suggest that where ever possible
ema and ma not be used> > > except when trying to establish long
term baselines. You may not> > like the jerkiness without
them, but the peak values take on> > > significance in magnitude
and timing after you use the> > reconstructed formulas that emaand
ma do their best to blurr.> > >> > > Both RSI()and
ADX() in my view are horses of different colours> > because both are
associated with volatility breakout. The results of> > > oneare
similar to the other.> > >> > > I hope this helps
with your search.> > >> > > P> >>
>> >> >> >> > Your use of Yahoo!
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