Special Smoothed Relative Strength Index (SRSI)

SRSI with slope prediction values sorted in the screener

 

 

Slope prediction  accuracy for the 5 next days

 

Last slope direction

SRSI

 

 

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The Special Smoothed Relative Strength Index is an enhanced RSI (Relative Strength Index).

 

An extra smoothing technique is used to make the oscillator more predictable for future price movements.

 

The indicator excels in following applications:

 

l Predictions of direction for short to medium price trends

l Overbought and oversold indications

l Momentum measurement

 

The trader can directly read the current outputs of the indicator as text. No analysis needs to be done to interpret the indicators outputs.

 

 

 

 

 

 

 

 

 

The slope prediction accuracy is measured and displayed to the user. The 5 day prediction accuracies for certain trading issues tops over 60% (out of sample result).

 

 

Definition

 

 

A X day Wilder's RSI is defined as WRSIX (I) = 100 - (100 / (1 + Sum Up / Sum Down)).

 

Where

 

Sum Up is the sum of daily price increases in the X day period.

Sum Down is the sum of daily price decreases in the period.

 

 

General Trading Rules:

 

Rule 1

 

Overbought/Oversold: If WRSIX > 70, some traders consider it overbought, bearish and Short signal. If WRSIX < 30, some traders consider it oversold, bullish and Long signal.

 

Rule 2

 

Divergence: When stock price moves up but WRSIX falls, bearish and short signal. If stock price goes down but WRSIX rises, bullish and long signal.

 

 

 

Ticker

Date

Price

Volume

SRSI

SRSI Slope

SRSI Slope Prediction Accuracy %

^SSEC

2008-02-29

4348.54

47800

22

Up

63

GLD

2008-02-29

96.18

9347800

95

Up

61

^KS11

2008-02-29

1711.62

315800

93

Up

60

CIBN.VX

2008-02-29

41.98

638900

52

Down

59

KO

2008-02-29

58.46

7983700

51

Up

59

NOVN.VX

2008-02-29

51.45

18089400

32

Down

58

FCBP

2008-02-29

28.5

501100

4

Down

57

C

2008-02-29

23.71

99976700

15

Down

57

ABX

2008-02-29

51.95

8991100

87

Up

57

AEM

2008-02-29

68.8

2334000

93

Up

57

GG

2008-02-29

43.21

9027100

100

Up

57

GLG

2008-02-29

13.01

1052700

92

Up

56

ROG.VX

2008-02-29

204.9

2668800

86

Down

56

EDE

2008-02-29

20.51

210500

9

Down

55

CAG

2008-02-29

22.1

2794200

90

Down

55