Traders’ Tips by Technical Analysis, Inc.
FIBONACCI RETRACEMENTS AND THE RSI
Ingo Bucher’s article in this issue, “Fibonacci Retracements
And The RSI,” describes the advantages of considering
Fibonacci retracement levels for use with the classic RSI
indicator. Bucher reviews six charts, each displaying Fibonacci
retracement levels for the RSI associated with each chart. The
EasyLanguage code given here will allow you to automatically
recreate these charts for any security available in TradeStation.
Bucher calculated his retracement levels by picking the
RSI high and low for a given time window. In his examples,
these were generally six months to a year’s worth of data.
Once the high and low were picked, he calculated retracement
levels based on the well-known Fibonacci numbers (23.6%,
38.2%, 50%, 61.8%).