Relative Strength Index (RSI) - Cutler's


Relative Strength Index (RSI) - Cutler's

Variable List Abbreviation: CutlerRSI


Variable Mode(s): Standard, Stock, Futures1, and Futures2

[ Note: uses selected close variable in Stock, Futures1, and Futures2 modes ]


Parameter(s): CutlerRSI time periods



Indicates the relative dominance of upward trends to downward trends over n (time periods) time periods.  Useful for detecting overbought and oversold market conditions, which in turn indicate the possibility of a reactionary trend reversal.  An RSI near 100 indicates a dominance of an upward trend (possible overbought conditions), while an RSI near 0 indicates the dominance of a downward trend (possible oversold conditions).



CutlerRSI = 100 - ( 100 / (1 + RS))


RS = Up / Down  (equals zero if down=0)


Up   = Sum of increases over last n time periods divided by n

Down = Sum of decreases over last n time periods divided by n

Notes:  Usually for n-time period RSI, n chosen to be a half cycle length.  Values range from 0 (low relative strength) to 100 (high relative strength)