Fast And Slow RSI
Fast And Slow RSI (FSRSI) was authored by U. Jenson for Omega Research, 1997. First, the FSRSI calculates the Fast and Slow Kurtosis (FSK) using Momentum, previous Momentum and previous FSK (feedback) along with a percentage factor. Next, the FSRSI uses the FSK and the Relative Strength Index for the final calculation. A signal line, which is an weighted moving average of itself, is also given. The user may change the input (close), method (WMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
See also Fast And Slow Kurtosis
How To Trade Using Fast And Slow RSI
If the FSRSI crosses below the signal line a sell signal will be generated. Conversely, if the FSRSI crosses above the signal line a buy signal will be given.
How To Access in MotiveWave
Go to the top menu, choose Study>Oscillators>Fast&Slow RSI
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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Calculation
//input = price (user defined, default is closing price)
//method = moving average (ma), user defined, default is WMA
//period1 = user defined, default is 3
//period2 = user defined, default is 6
//period3 = user defined, default is 9
//period4 = user defined, default is 6
//prev = previous, rsi = Relative Strength Index
//index = current bar number
mom = momentum(index, period, input);
prevMom = mon[index-1];
prevFsk = FSK[index-1];
fsk = (.03 * (mom - prevMom)) + ((1 - .03) * prevFsk);
v4 = ma(method, index, period2, fsk);
rsi = rsi(index, period3, input)[0];
Plot1: fsrsi = (10000 * v4) + rsi;
Plot2: sig = ma(method, index, period4, FSRSI);
//Signals
buy = crossedAbove(FSRSI, SIG);
sell = crossedBelow(FSRSI, SIG);