RE: Relative Strength Index

[Heidi Stubner <stubner@xxxxxxxxxxxxx>]

THANK YOU, THANK YOU, THANK YOU.  That was exactly what I was looking for!!!!!


At 12:08 PM 11/2/1998 -0700, you wrote:
>Wilder uses his own form of "exponential" smoothing in his RSI.  That is
>why the function "Wilders Smoothing" was added to version 6.5 of
>MetaStock for Windows 95 & NT.  Basically, on day 15 and all subsequent
>days, Wilder takes the previous average up close and multiplies it by
>13, add today's up close (if any) and divides that value by 14.  He does
>the same with the average Down close.  You then divide the ups by the
>downs, add 1.00 to it and divide that into 100 and then subtract that
>result from 100.  You have the RSI.  Note how he uses a value multiplied
>by 13 and divides by 14 for a 14 time period RSI.
>
>To match this in a custom formula, you must use the "Wilders Smoothing"
>function.
>
>Here is a custom formula to use other than the close in the calculation.
>It is posted on our web page.
>
>Custom Relative Strength Index formula (for MetaStock 6.5 only)
>
>This formula will request the price data array to use when plotting.  If
>you plan to use this in an exploration or system test, be
>certain you change the default time periods and price data array
>selection to the inputs you wish as the exploration or system
>test will not prompt for the input, it will use the default values.  For
>more information, please review the sections in the
>MetaStock 6.5 manual on inputs and variables.
>
> 
>
>Q:=Input("Time Periods",1,1000,14);
>
>B:=Input("Field: 1=Close, 2=Open, 3=High, 4=Low, 5=Volume",1,5,1);
>
>Z:=If(B=1,Wilders(If(ROC(C,1,$)>0,ROC(C,1,$),0),LastValue(Q)),
>
>If(B=2,Wilders(If(ROC(O,1,$)>0,ROC(O,1,$),0),LastValue(Q)),
>
>If(B=3,Wilders(If(ROC(H,1,$)>0,ROC(H,1,$),0),LastValue(Q)),
>
>If(B=4,Wilders(If(ROC(L,1,$)>0,ROC(L,1,$),0),LastValue(Q)),Wilders(If(RO
>C(V,1,$)>0,ROC(V,1,$),0),LastValue(Q))))));
>
>Y:=If(B=1,Wilders(If(ROC(C,1,$)<0,Abs(ROC(C,1,$)),0),LastValue(Q)),
>
>If(B=2,Wilders(If(ROC(O,1,$)<0,Abs(ROC(O,1,$)),0),LastValue(Q)),
>
>If(B=3,Wilders(If(ROC(H,1,$)<0,Abs(ROC(H,1,$)),0),LastValue(Q)),
>
>If(B=4,Wilders(If(ROC(L,1,$)<0,Abs(ROC(L,1,$)),0),LastValue(Q)),Wilders(
>If(ROC(V,1,$)<0,Abs(ROC(V,1,$)),0),LastValue(Q))))));
>
>RS:=Z/Y;
>100-(100/(1+RS))
>
>Equis Support
>http://www.equis.com/
>http://www.equis.com/customer/support/
>Please include previous email answers and questions in your response. 
>
>Equis and MetaStock and MetaStock Professional are registered trademarks
>of Equis International.  Achelis Binary Wave, The DownLoader, Expert
>Advisor, OptionScope, Quotecenter, and Smart Charts are trademarks of
>Equis International.
>
>
>
>-----Original Message-----
>From: UG [mailto:ug@xxxxxxxxxxxx]
>Sent: Monday, November 02, 1998 12:07 PM
>To: metastock@xxxxxxxxxxxxx; Heidi Stubner
>Subject: Re: Relative Strength Index
>
>
>Heidi Stubner writes:
>
>> I'm trying to calculate how Equis comes up with the RSI figures.  I've
>> tried using the formula in the manual (100-(100/1+U/D)) where U =
>> change of up days/time period and D= change in down days/time period.
>
>I thought the U and D were the <period> day exponential MA of the ups or
>downs.  I have the book, but alas, it's at home.  I can check it this
>evening.
>
>-- 
>========================================================================
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>
>