Reverse Engineering RSI Levels into Approximate Prices
Summary
The document describes an indicator that reverses the RSI calculation to estimate an approximate closing price associated with a chosen RSI value. It presents the idea as a way to translate an oscillator threshold back into price terms, using RSI and a moving average of RSI as inputs. The listed settings include the RSI lookback, moving-average lookback and method, and applied price.
The calculation outline refers to smoothed up and down price movements and includes an exponential average tied to the RSI period. However, key equations are missing from the supplied text, so the exact transformation cannot be reconstructed or assessed here. No backtest, performance evidence, or trading rules are provided. The estimated price should therefore be understood as an indicator output, not a forecast or guarantee that price will reach that level; the document does not explain how to validate or use it in a strategy.
Key ideas
- The indicator maps selected RSI values back to approximate price levels.
- It uses RSI and a moving average of RSI as part of its calculation.
- Its settings allow the user to choose periods, averaging method, and input price.
- The supplied text omits key equations and provides no empirical performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.