RSI PRECISION
By Giorgos Protonotarios, Financial Analyst
(March 2021)
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■ SHORT DESCRIPTION
RSI PRECISION is an oscillator designed to enhance RSI with price volatility and make it much more accurate on longer time frames. The oscillator aims to identify overbought/oversold market levels, and it is ideal for analyzing volatile markets such as the cryptocurrency market.
RSI PRECISION is extensively tested and optimized to work properly with any financial-traded asset. However, there is the option to customize settings, in order to match any out-of-the-ordinary market conditions.
■ RSI PRECISION MISSION
To enhance RSI and make it more accurate on longer time frames, and especially during market tops/bottoms.
■ RSI PRECISION OBJECTIVES
The RSI PRECISION formula combines RSI readings with the periodic measurement of market volatility. The main objectives are:
(1) identify overbought/oversold market levels in a simple and user-friendly manner
(2) make precise calculations near market tops and bottoms, where price volatility is always booming
(3) make precise calculations on longer time frames (monthly, weekly) where RSI readings are hardly readable
(4) allowing traders to experiment by offering a plethora of different settings
■ RSI PRECISION CALCULATIONS
The RSI PRECISION consists of 3 components:
(a) Relative Strength Index readings
(b) Price Volatility measurement (on a periodic base and according to the selected time frame)
(c) RSI Volatility measurement (optional)
■ BASIC SETTINGS
There are plenty of parameters. Negative values are allowed in order to enhance user experimentation:
--RSI PERIODS:
The RSI is most typically used on a 14-period timeframe. However, you can perfectly use RSI PRECISION on a 21-period timeframe. By default, it is 14.
--RSI FACTOR (%)
You can adjust the weight of RSI readings in the formula. By default, it is 100%.
--PERIODIC PRICE VOLATILITY (%)
You can adjust the weight of Periodic Price Volatility in the formula. If you enter the value=0, then the formula becomes the classic RSI. By default, it is 100%.
--ADD PERIODIC RSI VOLATILITY (%)
This is an extra measurement of volatility. This time the focus is exclusively on periodic RSI volatility, not on price volatility. By default, it is 0%.
--CROSSOVER/CROSSUNDER LEVELS
You can create visual signals on any significant RSI PRECISION crossover/crossunder.
--BASE LEVEL
The base level is the level of RSI PRECISION equilibrium. Below the level of equilibrium, RSI PRECISION readings are colored in red. By default, it is 50.
Happy trading!
□ Giorgos Protonotarios
(March 2021)
By Giorgos Protonotarios, Financial Analyst
(March 2021)
--------
■ SHORT DESCRIPTION
RSI PRECISION is an oscillator designed to enhance RSI with price volatility and make it much more accurate on longer time frames. The oscillator aims to identify overbought/oversold market levels, and it is ideal for analyzing volatile markets such as the cryptocurrency market.
RSI PRECISION is extensively tested and optimized to work properly with any financial-traded asset. However, there is the option to customize settings, in order to match any out-of-the-ordinary market conditions.
■ RSI PRECISION MISSION
To enhance RSI and make it more accurate on longer time frames, and especially during market tops/bottoms.
■ RSI PRECISION OBJECTIVES
The RSI PRECISION formula combines RSI readings with the periodic measurement of market volatility. The main objectives are:
(1) identify overbought/oversold market levels in a simple and user-friendly manner
(2) make precise calculations near market tops and bottoms, where price volatility is always booming
(3) make precise calculations on longer time frames (monthly, weekly) where RSI readings are hardly readable
(4) allowing traders to experiment by offering a plethora of different settings
■ RSI PRECISION CALCULATIONS
The RSI PRECISION consists of 3 components:
(a) Relative Strength Index readings
(b) Price Volatility measurement (on a periodic base and according to the selected time frame)
(c) RSI Volatility measurement (optional)
■ BASIC SETTINGS
There are plenty of parameters. Negative values are allowed in order to enhance user experimentation:
--RSI PERIODS:
The RSI is most typically used on a 14-period timeframe. However, you can perfectly use RSI PRECISION on a 21-period timeframe. By default, it is 14.
--RSI FACTOR (%)
You can adjust the weight of RSI readings in the formula. By default, it is 100%.
--PERIODIC PRICE VOLATILITY (%)
You can adjust the weight of Periodic Price Volatility in the formula. If you enter the value=0, then the formula becomes the classic RSI. By default, it is 100%.
--ADD PERIODIC RSI VOLATILITY (%)
This is an extra measurement of volatility. This time the focus is exclusively on periodic RSI volatility, not on price volatility. By default, it is 0%.
--CROSSOVER/CROSSUNDER LEVELS
You can create visual signals on any significant RSI PRECISION crossover/crossunder.
--BASE LEVEL
The base level is the level of RSI PRECISION equilibrium. Below the level of equilibrium, RSI PRECISION readings are colored in red. By default, it is 50.
Happy trading!
□ Giorgos Protonotarios
(March 2021)
Qexpert.com -George Protonotarios