09.12.2012 Views

Charting and Studies User Guide - CQG.com

Charting and Studies User Guide - CQG.com

Charting and Studies User Guide - CQG.com

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Page 322<br />

RSI is said to indicate an "overbought" condition when it is above 70 (<strong>CQG</strong>'s default set at<br />

75.00) <strong>and</strong> an "oversold" condition below 30 (default set at 25.00). The center line default is<br />

50.00.<br />

This can be a problem with explosive trends as the RSI above 90 or below 10 shows powerful<br />

momentum <strong>and</strong> an imminent crescendo type top or bottom.<br />

Also, RSI momentum divergences are said to be frequently accurate for indicating that a<br />

market turning point is imminent, if quantified correctly. Shaun Downey’s book Trading Time<br />

looks at this problem in detail.<br />

Relative Strength Index Parameters<br />

• Display<br />

• MarkIt<br />

• Period: The time frame used for the Momentum calculation.<br />

• Price: The price used for the calculations.<br />

• OB/OS for Hi, Lo, <strong>and</strong> Center lines.<br />

Basic <strong>Studies</strong>

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!