Here is this month's selection of Traders' Tips, contributed
by various developers of technical analysis software to help
readers more easily implement some of the strategies presented.
Internet users will also find these and some previous
Traders’ Tips on our home page at http://www.Traders.com.
The focus of this month's Traders' Tips is the article "Using
Fibonacci ratios and momentum" by STOCKS & COMMODITIES
Editor Thom Hartle. In this TradeStation implementation, we'll
focus on the RSI-based oscillator described in the article.
In TradeStation, Fibonacci bands can be applied using the
support/resistance drawing tool. In addition, a standard RSI
indicator is built into the program. For Traders' Tips this
month, I have developed an oscillator-type directional indicator
that's based on the RSI calculation and its relation to 50.
In addition, I have developed two PaintBar Studies, which are
also based on the RSI and its relation to 50.
This version of the RSI oscillator indicator basically transforms
the typical RSI into a zero-based oscillator. Values
above the equal line represent RSI values above 50. Values
below the equal line represent RSI values below 50. If the
histogram input is set to y, the zero-based RSI values will be
displayed in a histogram format. If the line input is set to y, the
zero-based RSI values will be displayed in line format. In
addition, if the alert feature is enabled, an alert will be
triggered if the RSI-based value crosses above or below zero.
This indicator can be written in the TradeStation Power
Editor as follows. The suggested format settings for this
indicator are outlined after the code.
Name: RSI Oscillator
Inputs: Price(Close), RSILen(14), Histgram("Y"), Line("Y");