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Indicators  |  AUG 2003

Reverse Engineering RSI (ll) by Giorgos Siligardos, Ph.D.

Reverse Engineering RSI (ll) by Giorgos Siligardos, Ph.D. The Revenge Of The Indicators - Reverse Engineering RSI (II) I Simplify price projection and get a clearer visual representation with these three indicators. In the June 2003 STOCKS & COMMODITIES, I introduced the RevEngRSI indicator and showed how it could be used to project support/resistance levels for the price. In that article, I also showed that the curve of this indicator is a transformation of a horizontal line from the relative strength index (RSI) graph to the price graph, which carries the support-resistance attributes of the horizontal line of the RSI graph into support-resistance attributes in the price graph. In this article, I will discuss three more indicators that transform the trendlines and moving averages of RSI into curves in the price graph, simplifying the price projection method and improving its visual representation. REVENGEMARSI AND REVENGSMARSI My June S&C article stated that: • If P is an indicator (such as the closing price of an equity, or an oscillator, and so on), the value of tomorrow’s P that touches tomorrow’s k-period exponential moving average (EMA) of P is exactly the value of today’s k-period exponential moving average of P.

by Giorgos E. Siligardos, Ph.D.

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