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AFL: RSI with Dynamic Threshold Lines



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If you look at the attached chart,
the dynamic RSI threshold has one
characteristic I like. On vigorous
breakouts the bands expand and allows
the stock position to run. As RSI
stalls and fades near the top, the bands
contract and trigger later than a 
static threshold would. See the January
to March trade.

Good Trades,

Jim


// --- begin AFL ---

// Dynamic RSI Thresholds -- J. Varney
// 
// 
/* 
Instead of the traditional fixed RSI = 30 and 70 thresholds to define
oversold and overbought, this AFL uses standard deviation to determine
dynamic overbought and oversold theshold lines.
*/

t = 10;
myRSI = RSI(t);
Adev = StDev(myRSI, 3*t);
Hiline = 50 + 1.8*Adev;
Loline = 50 - 1.8*Adev;
Plot(myRSI,"",colorBlue,8);
Plot(Hiline,"",colorRed,1);
Plot(Loline,"",colorGreen,1);

Title = " " +Name() +
" Dynamic RSI Threshold, t = " + 
WriteVal(t, format=1.0) + " "; 

// --- end AFL ---


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