Hi,
I was reading "Street Smart" by Linda Raschke and i cam across this,
"There are lots of tricks one can do with short-term rates of change. This Pattern uses a one-period rate of change or "momentum" function. This is simply, the difference between today's close and yesterday's close. (i.e., if today;,, closing price was 592 and yesterday's closing price was 596, the
difference is -4.) A three-period RSI of this one period change is calculated. (Most software charting packages allow the user to do studies on studies in just this way.) "
Can anyone explain in simple words on how do i calculate Three Period RSI?
2) Also what is a "three-period RSI of a one-period rate of change (the daily net change)"?
Ps: A Formula to calculate will also Help.
Thanks,
Harshit Patel
I was reading "Street Smart" by Linda Raschke and i cam across this,
"There are lots of tricks one can do with short-term rates of change. This Pattern uses a one-period rate of change or "momentum" function. This is simply, the difference between today's close and yesterday's close. (i.e., if today;,, closing price was 592 and yesterday's closing price was 596, the
difference is -4.) A three-period RSI of this one period change is calculated. (Most software charting packages allow the user to do studies on studies in just this way.) "
Can anyone explain in simple words on how do i calculate Three Period RSI?
2) Also what is a "three-period RSI of a one-period rate of change (the daily net change)"?
Ps: A Formula to calculate will also Help.
Thanks,
Harshit Patel