Relative Strength Index Convergence/Divergence a Formula of Rocco Luca Casabene
RSI was invented by J. Welles Wilder on 1978 presented in a book called “New Concept of Technical Trading System”.
Wilder formula is considering the gain and loss average at the closing of X period of time
The most used RSI is 14, where 14 indicate the last 14 periods.
The formula, plotted into a trading chart, is showing us a range of from 0 to 100 and a line that is floating inside the range that will tell us if the Symbol we are considering to buy is oversold or overbought.
I have created a new tool, using Wilder RSI system. My oscillator is basically formed with two lines that are fluctuating inside a range of 0-100. One line is slower compared to the other.
When the fast line cross above the slow line, is an indication of an uptrend reversal, vice-versa is an indication of a downtrend reversal.