//------------------------------------------------------------------------------
//
// Formula Name: Relative Strength Index
// Author/Uploader: Tomasz Janeczko
// E-mail: tj@amibroker.com
// Date/Time Added: 2001-06-16 08:50:34
// Origin: Relative Strength Index was originally developed by Welles Wilder
// Keywords: relative strength
// Level: medium
// Flags: system,commentary
// Formula URL: http://www.amibroker.com/library/formula.php?id=20
// Details URL: http://www.amibroker.com/library/detail.php?id=20
//
//------------------------------------------------------------------------------
//
// Sample commentary using RSI showing how to use WriteIF() and WriteVal()
// functions.
//
// May be also used as a simple trading system.
//
//------------------------------------------------------------------------------
/* File: RSI Guru Commentary
** Requirements: AmiBroker 3.0 (AFL 1.1)
** Last Modified: TJ, Mar 22nd, 1999
*/
"Review of " + name() +" as of "+date();
vrsi = rsi( 14 );
buy = cross( vrsi, 30 );
sell = cross( 70, vrsi );
"\nThe current value for the 14 day RSI is " + WriteVal( vrsi );
"\nThe RSI, written by J. Welles Wilder in 1978, can be used in several different ways to analyze a chart.\n";
"Tops and Bottoms";
"================\n";
WriteIf( vrsi > 70, "The RSI is above 70. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security.",
WriteIf( vrsi < 30, "The RSI is below 30. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security.",
"The RSI is not currently in a topping (above 70) or bottoming (below 30) range. "
+ WriteIf( cross( 70, vrsi ), "However, the RSI just crossed below 70 from a topping formation. This is a bearish sign.",
WriteIf( cross( vrsi, 30 ), "However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign.", "" ) ) ) );
bars30 = BarsSince( buy );
bars70 = BarsSince( sell );
"\nBuy/Sell signals";
"================\n";
"A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. \nThe last signal was a "+
WriteIf( bars30 < bars70, "buy", WriteIf( bars30 > bars70, "sell", "" ))+
WriteVal( min( bars30, bars70 ), 3.0 ) + " period(s) ago.";
"\nChart Formations";
"================\n";
"The RSI often forms chart patterns (such as head and shoulders or rising wedges) that may or may not be visible on the price chart. "+
"Since the analysis of chart patterns is subjective, the Guru Advisor cannot find them. You will have to visually inspect the RSI indicator to look for such patterns.";
"\nFailure Swings (also known as support or resistance penetrations or breakouts";
"=============================================================================\n";
WriteIf( vrsi >= hhv( vrsi, 14 ), "The RSI has just reached its highest value in the last 14 period(s). This is bullish.",
WriteIf( vrsi "The RSI does not currently show any Failure Swings." ) );
"\nSupport and Resistance";
"======================\n";
"The RSI shows, sometimes more clearly than the price chart, levels of support and resistance."+
"As with chart formations, this is subjective, so you must visually inspect the chart to determine this.";
"\nDivergence";
"==========\n";
WriteIf( close >= hhv( close, 14 ) and vrsi < hhv( vrsi, 14 ),
"The security price has set a new 14-day high while the RSI has not. This is a bearish divergence.",
WriteIf( vrsi >= hhv( vrsi, 14 ) and close < hhv( close, 14 ),
"The RSI has set a new 14-day high while the security price has not. This is a bullish divergence.",
WriteIf( close llv( vrsi, 14 ),
"The security price has set a new 14-day low while the RSI has not. This is a bullish divergence.",
WriteIf( vrsi llv(close,14),
"The RSI has set a new 14-day low while the security price has not. This is a bearish divergence.",
"The RSI and price are not diverging." ) ) ) );
"\n\nThis commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators.
The author accepts no liability whatsoever for any loss arising from any use of this expert or its contents.";
