Bitcoin Forum
May 12, 2024, 01:42:27 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Bitcoin Forum > Economy > Trading Discussion > Relative Strength Index
Warning: One or more bitcointalk.org users have reported that they strongly believe that the creator of this topic is a scammer. (Login to see the detailed trust ratings.) While the bitcointalk.org administration does not verify such claims, you should proceed with extreme caution.
Pages: [1]
« previous topic next topic »
  Print  
Author Topic: Relative Strength Index  (Read 474 times)
Najska (OP)
Full Member
***
Offline Offline

Activity: 152
Merit: 100


View Profile
March 01, 2014, 01:55:56 AM
Last edit: March 01, 2014, 09:24:02 AM by Najska
 #1
Hi fellows,

I have a question which may sound a bit numb. Why do traders use RSI instead of RS? For instance, let's say that we determine overbought/oversold lines as 20 and 80 using RSI. Then it's exactly the same as using RS and setting the lines to 0.25 and 4. The only difference is RS ranges from 0 to infinity whereas RSI is calculated so as to be fit in the range of 0 and 100. That may be meaningful for a human trader but I don't see any reason for using RSI in an algorithmic trading software. Any ideas?

Addition: Or you may have 100*exp(-RS) so that you have an index between 0 and 100.
Pages: [1]
  Print  
Bitcoin Forum > Economy > Trading Discussion > Relative Strength Index
 « previous topic next topic »
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!