Using Three Price-Change Inputs to Build RSI Indicators

Summary

The document describes a technical indicator that tracks three RSI-style readings based on the current high, close, and low relative to the previous close. It presents the high-based reading as a view of upward price movement, the close-based reading as a view of overall direction, and the low-based reading as a view of downward price movement. The supplied example uses a configurable smoothing period and displays the readings alongside overbought and oversold reference levels.

The text gives conventional RSI interpretations and thresholds, but it does not show a chart, market test, or evidence that combining these readings improves decisions. The prose and included code also do not align cleanly: the code’s plotted middle series is the standard RSI, and its variable updates make it difficult to confirm that all three described calculations are implemented as stated. Treat the indicator as an idea to inspect and validate, not as a tested trading strategy.

Key ideas

• The indicator compares high, close, and low with the previous close to derive separate RSI-style readings.
• The described readings are intended to distinguish upward movement, general direction, and downward movement.
• The example includes configurable smoothing and overbought and oversold reference levels.
• The document provides no performance evidence, and its code does not clearly match all of its verbal descriptions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.