RSI Reverse Engineering indicator

Category: Indicators By: Louis Winthorp III Created: September 14, 2018, 4:50 PM
September 14, 2018, 4:50 PM
Indicators
7 Comments

With the RSI Reverse Engineering indicator, you are able to calculate the price of the next candle on a certain value of the RSI. E.g. what price is needed for the RSI to be at 70 on the next candle.

REM Reverse Engineering RSI, original by Giorgos Siligardos
REM Build for ProRealTime, used RSI with WilderAverage

REM Parameters
RSIRevValue = 70
RSIPeriod = 14

REM Original RSI values
RSIOri = RSI[RSIPeriod](close)
UPOri = MAX(0, close - close[1]) //higher close then previous
DOWNOri = MAX(0, close[1] - close) //lower close then previous
upMAOri = wilderAverage[RSIPeriod](UPOri)
downMAOri = wilderAverage[RSIPeriod](DOWNOri)


REM Reversed Engineered RSI Value to Price
RSRev = (100/((-1*RSIRevValue)+100))-1

if RSIRevValue < RSIOri THEN
 upMARev = upMAOri*(1-(1/RSIPeriod))
 downMARev = upMARev/RSRev
 DOWNRev = (downMARev - (downMAOri * (1-(1/RSIPeriod))))/(1/RSIPeriod)
 RSIPriceRev = close - DOWNRev
elsif RSIRevValue > RSIOri THEN
 downMARev = downMAOri*(1-(1/RSIPeriod))
 upMARev = downMARev*RSRev
 UPRev = (upMARev - (upMAOri * (1-(1/RSIPeriod))))/(1/RSIPeriod)
 RSIPriceRev = close + UPRev
endif

RETURN RSIPriceRev as "RSIPriceRev"

Download
Filename: RSI_RevEngineering.itf
Downloads: 341
Louis Winthorp III Average
Currently debugging life, so my bio is on hold. Check back after the next commit for an update.
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