Reverse Engineering RSI (ll) by Giorgos Siligardos, Ph.D.
The Revenge Of The Indicators - Reverse Engineering RSI (II)
Simplify price projection and get a clearer visual representation
with these three indicators.
In the June 2003 STOCKS & COMMODITIES, I
introduced the RevEngRSI indicator and
showed how it could be used to project
support/resistance levels for the price. In that
article, I also showed that the curve of this
indicator is a transformation of a horizontal
line from the relative strength index (RSI) graph to the price
graph, which carries the support-resistance attributes of the
horizontal line of the RSI graph into support-resistance
attributes in the price graph. In this article, I will discuss
three more indicators that transform the trendlines and
moving averages of RSI into curves in the price graph,
simplifying the price projection method and improving its
REVENGEMARSI AND REVENGSMARSI
My June S&C article stated that:
• If P is an indicator (such as the closing price of an
equity, or an oscillator, and so on), the value of
tomorrow’s P that touches tomorrow’s k-period exponential
moving average (EMA) of P is exactly the value
of today’s k-period exponential moving average of P.