Skip to main content

SRSI VertexFX Indicator

The sRSI (Sell Relative Strength Index) is a powerful VertexFX client-side indicator based on enhanced implementation of the Relative Strength Index (RSI) indicator.
The RSI indicator is useful in identifying the trend of the strength as well as the end of the trend. However, one of the drawbacks of the sRSI is that it introduces lag. Another drawback of RSI is that since all price changes are given equal weightage the more recent price changes are not reflected quickly in the calculations. The sRSI solves this drawback by giving weightage to the more recent price changes. The traditional RSI uses only Close prices. The sRSI uses Open, High, Low and Close prices to capture not only the change in trend but also the strength of the trend within the candle.

We use two levels to identify the strength of the sRSI. The primary Neutral Zone level is used to identify sideways trend. When sRSI is inside the NEUTRAL_ZONE the trend is considered sideways. When sRSI crosses above the Neutral Zone it is considered a bullish breakout, and the trader can enter long positions in such a scenario. When the sRSI crosses below the Neutral Zone it is considered a bearish breakout, and the trader can enter short positions.
In addition to the Neutral Zone levels sRSI also provides the OverBought and Oversold Levels. When the sRSI crosses above the OverBought Level it is safe to exit the long position. Similarly, when sRSI crosses below the OverSold Level it is safe to exit the short position.

BUY / EXIT SHORT - Enter LONG (or exit SHORT) at close of candle when the sRSI indicator turns BLUE either from RED or GRAY. The stop-loss can be placed below the nearest Swing Low. Do not enter LONG if sRSI was BLUE before it turned GRAY and turned BLUE again. This ensures that we do not enter in sideways or whipsaw markets.

SHORT / EXIT LONG - Enter SHORT (or exit LONG) at close of candle when the sRSI indicator turns RED either from BLUE or GRAY. The stop-loss can be placed above the nearest Swing High. Do not enter SHORT if sRSI was RED before it turned GRAY and turned RED again. This ensures that we do not enter in sideways or whipsaw markets.






Comments

Post a Comment

Popular posts from this blog

CCI Filter VertexFX Indicator

CCI Filter indicator is VertexFX client-side indicator script based on the Commodity Channel Index -CCI and Moving Average methods. The Commodity Channel Index (CCI) is a powerful indicator that provides important information on the trend. It is cyclical in nature and follows price closely. When the CCI has bottomed out below zero and is rising gradually, it implies that the market is rising and bullish. On the contrary, when the CCI has peaked and is falling gradually, it implies that the market is falling and bearish in nature. This is combined with the Moving Average of the Commodity Channel Index (CCI) which provides crossover signals. To calculate the CCI_Filter indicator, we first calculate the Commodity Channel Index (CCI) over the recent CCI_PERIOD bars. The CCI PRICE specifies the price field to be used to calculate the CCI indicator. This is the BLUE component of the indicator. In the next step, we calculate the Moving Average of the CCI over the recent MA_PERIOD bars. T...
Post a Comment
Read more

WPR+CCI Vertexfx Indicator

The WPR+CCI is a powerful VertexFX client-side indicator based on the Williams Percent Rank (WPR) and the Commodity Channel Index (CCI). The Williams Percent Rank indicator provides insights into the current price with respect to its historical highs and lows over the specified period. Lower values of WPR suggest bearish trend and higher values of WPR indicator bullish trend. The WPR is bounded between -100 and 0. The Commodity Channel Index (CCI) measures the price variations from its statistical mean. Traders use CCI to help identify price reversals, price extremes and trend strength. The CCI typically oscillates above and below a zero line. Normal oscillations will occur within the range of +100 and -100. Readings above +100 imply an overbought condition, while readings below -100 imply an oversold condition. The WPR+CCI indicator uses the WPR as the primary indicator and the CCI as the filter indicator. When the WPR is rising and the CCI is above +80 the WPR+CCI indicator turns BL...
Post a Comment
Read more