Asymmetrical RSI

Asymmetrical RSI ARSI

Sylvain Vervoort on going back, these are known to improve the standard indicator Relative Strength Index RSI. The known weaknesses of the highly popular Relative Strength Index - a long stay between the extreme zones, tend to the midline - is countered by simple adjustments with the aim of improving the responsiveness of education and a more pronounced divergence.

In principle is based the calculation of the ARSI - directional analog to enhancing the mother indicator - the sum of the momentum of rising and falling periods. This is followed by the original RSI smoothed over the period of calculation using a simple moving average, however, the smoothing is performed at ARSI exponential and asymmetrical. Specifically, determine the severity of the particular price change smoothing intensity: The intensity of this positive momentum will depend on the number of "green" periods, the negative momentum of the same number of "red" periods. The real indicator line is ultimately a typical oscillator dar.


The demonstrated improvement in the smoothing component implies analogous to the parent indicator interpretation of the whole: Basically shows the Oszialltorverlauf to a trend inherent strength, the two used extreme zones to facilitate the classification of the market situation: from a strong uptrend, but possibly also from an overbought market is go out in the extreme upper zone, in accordance with the lower by a strong downward trend, or an oversold market.

Who uses the Asymmetrical RSI seeks primarily to differences between baseline and progress indicator. For example, to speculate on a possible trend change if the underlying, still marked new highs in an uptrend, the indicator but not more. In a downturn sees the signal for the possible trend change accordingly: the underlying marked new lows, the Oscillator but no longer.