OPEN-SOURCE SCRIPT
Cumulative Relative Strength Index
Introduction: This gem is straight out of chapter 9 of "Short Term Trading Strategies That Work" by Larry Connors and Cesar Alvarez. In the book, the authors discuss the creation of a custom strategy that sums the past X bars of the regular Relative Strength Index indicator, and they discuss how this modified "cumulative" RSI provides better entry and exit points.
How it works: This indicator sums the past X periods of the Relative Strength Index, and plots this "cumulative" measure of the RSI. Since the cumulation changes the score scale, the upper and lower bands are dynamic based on how many bars back you are summing for the cumulation. The upper and lower bands are adjustable with an input, along with the RSI length and cumulation period.
Additional explanation: The authors use this indicator on the 1 day time-frame, typically with the RSI length set to 2 and the cumulation length set to 2. Based on how the indicator works, under those settings the current value would read the sum of the last 2 day's regular 2 period RSI. Test it out!
How it works: This indicator sums the past X periods of the Relative Strength Index, and plots this "cumulative" measure of the RSI. Since the cumulation changes the score scale, the upper and lower bands are dynamic based on how many bars back you are summing for the cumulation. The upper and lower bands are adjustable with an input, along with the RSI length and cumulation period.
Additional explanation: The authors use this indicator on the 1 day time-frame, typically with the RSI length set to 2 and the cumulation length set to 2. Based on how the indicator works, under those settings the current value would read the sum of the last 2 day's regular 2 period RSI. Test it out!
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Want to build custom alerts and custom strategies? Interested in automated trading?
Hire me to code or automate your trading strategy, or schedule a free consultation at:
TradeAutomation.net
Hire me to code or automate your trading strategy, or schedule a free consultation at:
TradeAutomation.net
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Want to build custom alerts and custom strategies? Interested in automated trading?
Hire me to code or automate your trading strategy, or schedule a free consultation at:
TradeAutomation.net
Hire me to code or automate your trading strategy, or schedule a free consultation at:
TradeAutomation.net
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.