Description
The Relative Strength Index (RSI) strategy is based upon the eponymous technical indicator.
The RSI is an oscillator comparing the magnitude of a stock's recent gains to the magnitude of its recent losses on a scale from 0 to 100. Buy and Sell signals occur upon crossovers of RSI values with oversold and overbought levels. The strategy adds a simulated Buy order when the RSI crosses above the oversold level and a simulated Sell order when it crosses below the overbought level.
Input Parameters
| Parameter | Description |
|---|---|
price
|
Defines price used in calculations. |
length
|
Defines the number of bars used in calculation of RSI. |
over bought
|
Defines the overbought level. |
over sold
|
Defines the oversold level. |
|
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.
Technical analysis is not recommended as a sole means of investment research.
For educational purposes only. Not a recommendation of a specific security or investment strategy.