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RSI (I Chart)

Welles Wilder RSI (I Chart) The RSI chart uses one adjustable parameter, P (The number of days  averaged). The calculations are based on day-to-day changes in Adjusted Price.

Step 1

Calculate an initial RSI using a simple average:

  • Calculate the Simple Average of the Positive changes in value and another simple Average of Negative changes in value.Both for P number of days.
    • AvgDwn = Sum Positive / P
    • AvgUp = Sum Negative / P
  • Calculate the initial RSI using the Simple Averages of the Positive and Negative changes (This will be the RSI value for day P).
    • Initial RSI = 100 – [ 100 / ( 1 + ( AvgUp / AvgDwn ) ) ]

Step 2

Calculate the remaining AvgUp and AvgDwn values using an Exponential Average for Days > P

  • AvgUp = [(Previous AvgUp * (P-1)) + Today’s Negative Change] / P
  • AvgDwn = [(Previous AvgDwn * (P-1)) + Today’s Positive Change] / P

Step 3

Calculate the RSI for Days < P

  • RSI = 100 – [ 100 / ( 1 + (AvgUp / AvgDwn) ) ]

Notes:

FastTrack sets any value of RSI that is less than 1 to 1. This is unique to FastTrack and has no impact on the practical interpretation of the chart.