DIG RSI

	Supported Platform:	TradeStation, Multicharts
	Market:	All (Stock, Futures, Forex, Options)
	TimeFrame:	Any Time Frame
	Licence:	Lifetime

$47

 

Our DIG RSI indicator is based on the Traditional RSI, but we gave it a major face lift.
It now comes with a new look which is visually enhanced and easy to use.

What is RSI and What can I do with it?

RSI ( Relative Strength Index ) is a technical momentum indicator that was developed by J. Welles Wilder. The RSI compares the magnitude of recent losses and gains in an attempt to determine weather a given asset is oversold or overbought. The RSI is actually an Oscillator, meaning that it has Minimum and Maximum values, it ranges from 0 – 100.
Traditionally it is considered that when the RSI is above 70 the market is Overbought and when the RSI is below 30 the market is oversold.

AEP Daily Chart. Notice that when the RSI enters the Oversold zone the indicator changes color to Dark Green and when the RSI enteres the Overbought zone it changes to Dark Red. This makes it very easy to use.

Ways to Use the RSI Indicator

Entry Signals : The RSI can be used to recognize a change in trend direction. When the market is moving up the RSI will eventually cross over the overbought level, when this happens we get into to a READY state, when the RSI crosses down below the Overbought level we have a Short Signal. When the RSI signals for a short we should not jump in straight away, we need to understand the overall conditions of the market and use our knowledge and other helping indicators.

AMZN Min Chart:

When the RSI enters the OverBought Zone ( the indicator turns red )  we get ready. When the RSI cross below the OverBought Line we have a short signal. We have 2 red bars with momentum so we Go Short.

Trend Direction: The RSI indicator can also be used to tell the overall direction of the market, Over 50 Bullish Trend, Under 50 Bearish Trend. This is correct up to the moment we get a Signal to the opposite direction as described above

Divergence: Another very common way to use the RSI indicator is Divergence. We have created a special indicator that automatically finds RSI Divergences – It will become available in a few weeks.  You are probably familiar with is idea, if not here is a quick explanation.
Divergence Long Example : The indicator has 2 Upper pivots and  the recent one is Lower, meanwhile the price has 2 Upper Pivots when the recent one is Higher. This is a Bearish Divergence, so we expect a Short Trade.

AMZN 30 Min Chart. We have a lower Upper Pivot on the RSI, and a higher Upper Pivot of the price, also notice that the RSI is OverBought this is a great bonus. This Signal resulted in a very nice Short Trade.

Key Features :

• Adjustable Over Bought, Over Sold Levels
• The indicator Changes color according to location:  Normal, Over Bought, Over Sold
• Build in Alert feature

Buy a Lifetime Licence for the DIG RSI Indicator:

Trading Platform:	TradeStation 9.1 TradeStation 9.0 TradeStation 8.8 TradeStation 8.7 MultiCharts 7 MultiCharts 64 bit TradeStation 2000i	$47 (USD)
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Please note that we can also modify this indicator to your specific needs for example: • Adding Alerts, and Emails with specific user defined code • Making a radar screen version of an indicator • Making the indicator work with Multi Time Frames • Making the indicator plot on Data1 but use the Data from Data2 or Data3 • Making the indicator run faster (Very important for heavy TradeStation users) • Making the indicator plot behind the Candles or Bars on the chart Get a quote on custom indicator coding here >>