**** Notes of Version 2.1
Version 2.1 was released on 7/25/2011. This version addresses several issues of the first release.
– Better initialization of PSP data object
– Better handling of RadarScreen vs. Charts
– Rewrite of the RSI to more closely match the algorithm used in TradeStation’s standard RSI
Together, we can make this indicator even better. If you have some feature you want, please use the comment section to leave your comments.
—> This indicator is easy to data starve so make sure you have enough data
This is a versatile multi-timeframe RSI indicator that can be used both for RadarScreen and Charts. The MTFRSI allows for three different RSI timeframes and helps to identify convergences when a symbol is overbought or oversold as well as divergences when RSI’s move away from each other in reversals.
The MTFRSI does not use multiple data-streams as was necessary in the past but instead uses the new PriceSeries provider object available in TradeStation 9.0 and above. This indicator was one of the TradeStation 9.0 Developer’s challenge winners.
For RadarScreen, this is a breakthrough as previously it was not possible to have data from different timeframes available.
This indicator comes with a worksheet setup with both an intraday example and daily swing trade type example.
slow, med, fast = time interval (note: not length) of each RSI. The time interval is encoded as such:
A positive input is interpreted as minutes. The above example is a 60 minute slow RSI, a 15 minute medium RSI, and a 3 minute fast RSI.
A negative input between –1 and –7 is interpreted as days, so a –3 input would be a 3 day RSI of length rsiLEN.
Any number greater that –7 is weeks, so a –8 would be a one week RSI.
rsiLen = the common length for all the RSIs.
OB = the overbought value for the indicator, used to plot the lines on the charts and used for high lightening in the RadarScreen.
OS = The oversold value.
Version is the version number of the installed indicator and should not be changed.
An example of a swing trade type longer timeframe input setup follows:
Here we have a slow RSI that is 7 days, a medium RSI that is 1 day, and a 30 minute intraday RSI, all with a length of 14.
Make sure you do not data-starve the slow RSI. The RSI data is calculated from an independent price object which is not linked to the time interval on either the RadarScreen or Chart Analysis window. It is possible to change the timeframe on the Chart window, for instance to any time value, but you must have enough data on the chart to satisfy the data requirements of the slower RSI. In general think 2X your RSI length.
For the example input set above with the 7 day RSI, you can put that on a one minute chart if you want (not sure why you would do that) but you would need 7*14 (rsiLen) * 2 = 196 days worth of one minute data to satisfy the slower RSI, so make sure your symbol is formatted to load that much data.
Here are some examples of how I use this indicator.
The RadarScreen setup with the intraday setting I gave as an example is above and I have highlighted some stocks that I narrowed down from a larger list.
The chart below is a look at XRAY from the RadarScreen with the same indicator and identical setup installed on a Chart Analysis window. I am interested in XRAY because it has a very strong 7 day RSI but the faster 30 minute RSI plunged into oversold. On the previous day, XRAY made a new low, but the 30 minute RSI tells us there was some intraday strength and we actually got a higher 30 minute RSI (CYAN) than two days ago. That was the entry on the close of the previous day.
Now, looking at PAYX for a current setup – I would go long on the close here with the confidence of the strong slow and medium RSI values. Check PAYX on 3/14/2011 and see if this trade worked.
I am not as excited about this long as the previous example since we did not go oversold on the fast RSI, but I might take a shot here on the close, or wait for the open to see how the 33 area tests out to get in.
Now moving on to PCAR. For the short fans, PCAR from our RadarScreen is an interesting short.
PCAR put in a very high 30 minute RSI into the overbought area on very weak long term RSIs. There is a very high probability that the 48 and below area needs to reconfirm before this stock will move higher. That gives you a chance for some profit on the downside.
There are several MTFRSI patterns that repeat and can be traded for profit, like three-way convergences in oversold and overbought, extremes and confirming moves between the fast and medium RSIs.
To download the MTFRSI, you must be a gold member. If you are not you can read about going gold here: http://www.redliontrader.com/membership/. Gold membership entitles you to support and usage of all my indicators as well as access to our Ten Day Trade mechanical system.
If you are a Gold member and logged in you, should see the ELD to download below as well as a worksheet containing both the intraday and daily type setups. Remember to download and install the ELD first and then the worksheets.
NOTE: This is now open to FREE members for now
This content is only available to premium members. If you would like to join and have access to all my indicators checkout the current special being offered here: <a href=”http://www.redliontrader.com/membership/”>Premium Membership </a>