V.15:11 (525-527) Traders' Tips

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.

TRADESTATION

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.

Type: Indicator

Name: RSI Oscillator

Inputs: Price(Close), RSILen(14), Histgram("Y"), Line("Y");

Vars: RSIVal(0);