Charting and Studies User Guide - CQG.com

Page 524
RSI Steps (RsStep)
Philosophy
This study records the closing value of a bar when the moving average of the Rsi crosses up or
down. This enables the ability to redefine divergence by allowing flexibility in the established
mantras associated with the subject and also qualify the strength of the trend and what the
highest timeframe chart is trending. This means that the trader knows what timeframe chart
should be dominating there core technical based signals.
Therefore Rsi Step does three things. Identifies trends, is the basis of qualifying divergence and
dictates the timeframe chart to be analyzed. Please see chapter 3 and 4 of the book Trading
Time for an expanded philosophy statement.
In order to understand and qualify both trend and divergence the studies should be applied two
times. The first time records the closing value of the bar and by left clicking a second time and
modifying the Value to Record to Base study.
The increased flexibility in understanding these points derives from the ability to select what
price should be used to qualify. This means if for example the relationship of the close instead
of high and lows is used, it reveals the ability to quantify divergence in sideways markets in
order to produce and early warning to a break out and new trend. This is referenced as
divergence as a continuation. This use of different momentum indicators and variables of them
to create divergence enables the trader to define how aggressive or conservative they wish
there signals to be.
Interpretation
The use of Steps can be interpreted for both the use as a divergence and trend qualifier.
For divergence, the steps up or down between the value of the bar and the indicator should be
going in opposite directions. The aggressiveness of that divergence is the number of
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