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Cutler's RSI

Cutler's RSI, which is another kind of Welles Wilder's original Relative Strength Index, turns out to be a momentum oscillator used to find and demonstrate overbought and oversold conditions. It does so by keying on special levels that are usually 30 and 70 on a "0 to 100-chart."

It can show the following information:

  • Movement can be not at once clear on the bar chart
  • Failure swings over 70 or under 30 which show reversals
  • Support and resistance

Discrepancies between price Cutler's RSI and RSI are measured like that: RSI = 100 - (100 / (1 + RS) )

RS = UPAV:x / DNAV:x, and . . .

UPAV:x = (E, period's Closes UP) / period

DNAV:x = (z: period's Closes DOWN) / period

A Close UP (or DOWN) = CLOSE - CLOSE previous

If the difference is positive, it is a Close UP. If the difference is negative, the sign is changed and it is a Close DOWN.

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