CatLady, Thomas, Ed........info on StochRSI :
References to the StochRSI indicator are not in the mainstream documentation and the quoted equations are often dissimilar. Some contain errors, possibly of a typographical nature during posting on the Internet. The MetaStock program with its 100 or so canned indicators doesn't even include StochRSI or tell how to calculate it, although the implied calculation method is via the briefly outlined %K Stochastics with Slowing calculation shown on p.276 of my v6.5 MetaStock manual (p.295 of the new v7.0 manual). So, caution is in order.
CatLady......Your Post #8790 presented two StochRSI equations in MetaStock format. I believe both of them contain errors. Apparently you cut-and-pasted these from the "guppy" site which is a compilation of user-supplied MetaStock formulas. The errors I refer to are pointed out below. I also present below what I believe to be the most consistent rendition of a StochRSI formula, which I obtained from an obscure (to most of us in N. America anyway) website in India. The URL is also shown below.
First, I will paste below in its entirety the StochRSI post by Steve Karnish at the "guppy" site. My comments on the suspected errors are presented with that information.
Then, I will paste the entire StochRSI section from the Indian site. Their equation is completely general, permitting user-defined periods for the RSI and Stochastic lookback periods and for Stochastic Slowing period.
From "Guppy" site (per Steve Karnish):
STOCH RSI
Although I keep the best of the bunch as a "super secret" for friends, relatives, and clients ... here is a smattering of formulae that might be useful. StoRSI's perform very differently when you plug in various numbers.
Experiment and determine which are most suitable for your style and markets. Substitute numbers, apply moving averages, get creative. These are just a few:
((RSI(21)-LLV(RSI(21),8))/((HHV(RSI(21),13))-LLV(RSI(21),13)))
((RSI(21)-LLV(RSI(21),21))/((HHV(RSI(21),21))-LLV(RSI(21),21)))
((RSI(14)-LLV(RSI(14),14))/((HHV(RSI(14),14))-LLV(RSI(14),14)))
Mov((RSI(21)-LLV(RSI(21),13))/(HHV(RSI(21),8)-(LLV(RSI(21)+.00001,13))),8,E)
*100
Mov((RSI(5)-LLV(RSI(5),5))/(HHV(RSI(5),5)- (LLV(RSI(5),5))),3,E)*100
Mov((RSI(13)-LLV(RSI(13),13))/(HHV(RSI(13),13)- (LLV(RSI(13),13))),3,E)*100
from Steve Karnish
Cedar Creek Trading
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My NOTE: Steve Karnish is not using consistent Stochastics lookback periods in the 1st and 4th equations above. The RSI and Stochastic lookback periods in the StochRSI need not be the same but they should be internally consistent within the equation. This might reflect a simple posting (typographical) error by Steve. Also, the single moving average in the above equations is NOT the way Stochastic slowing is applied conventionally, where both the numerator and denominator are averaged over the Stochastic slowing period.
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From SUMANGALAM_Online (Indian site):
sumangalamonline.com
Stochastic Relative Strength Index
{ rev. March 11,2000 Written for MetaStock 6.52 for Windows 95 and NT or higher }
Name
StochRSI
Formula
RSIperiod := Input( "RSI-periods", 2, 50, 14) ;
RsiStochaPeriod := Input("RSI-Stoch-periods", 2, 50, 9) ;
StochSlowperiod := Input("Stochastic-slow-periods",2, 50, 4) ;
(Sum( RSI(RSIperiod) -LLV(RSI(RSIperiod),RsiStochaPeriod),StochSlowperiod) / Sum(HHV(RSI(RSIperiod),RsiStochaPeriod) -LLV(RSI(RSIperiod),RsiStochaPeriod),StochSlowperiod) ) * 100
{Comment - In his book The New Technical Trader, Mr. Tushar Chande defines the Stochastic RSI as:
StochRSI = (RSI - RSIL)/(RSIH -RSIL) where RSIL and RSIH are the lowest and highest values of the RSI over a given look-back period.
Although mostly he has used 14 period indicator, he also suggests that we experiment with different calculation periods if we wish. The above formula is flexible enough so that we can experiment with different periods. He permits to multiply StochRSI by 100 if we wish, We have multiplied by 100 to maintain the consistency with RSI and Stochastic
Although Mr. Chande does not seem to be suggesting to use the Stochastic smoothing, but the formula presented above calculates 9-period Stochastic Oscillator with 4 period smoothing for the indicator, you can try other periods for Stochastic smoothing also- we feel it gives better signals.
If you wish to use the formula without Stochastic smoothing, you may try the formula presented at Equis web-site. A copy of which is available HERE ALSO}
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End of quote and EOM........Charles |
