Everything about RSI - page 59
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By leg you mean probably the last line of the zigzag ?
In fact it's easy, I ask the indicator to count the number of candle since the last turning point= lenght L, and I calculate the LRC with of period of this L lenght
For example if I have 10 candles since the last turning point I draw the LRC of 10 candles
Hope to be clear, I can post a picture if you want to
Zilliq
Because a picture is better than thousand words
1/ The indicator must calculate the number of candles since the last turning point
and draw a "progressive" LRC based on theses candles
=everytimes a new segment/leg of the ZZ appears, a new LRC appears with a lenght who growth until a new turning point
the LRC is calculate ONLY on the segment/leg of the ZZ
2/ But Arrows appears only if RSI break the last LRC (a new LRC will already appears)
Zilliq
And now with chart, see the very good reversal point it goes at the breakout of these LRC of the RSi
You see below an example of 4 successive LRC
And 4 arrows ( I draw manually)
Zilliq, who hope to be clear
And now with chart, see the very good reversal point it goes at the breakout of these LRC of the RSi
You see below an example of 4 successive LRC
And 4 arrows ( I draw manually)
Zilliq, who hope to be clear
Zilliq
Aas I see you were extending the "opposite side" value of linear regression channel. That was i referring to : in a normal usage we will never see that break since at that time there is already a new linear regression channel formed at that moment (as you told too). So if we are waiting for a previous lrc break we are in double "repainting" mode : having a zigzag recalculating values and having to wait for a confirmation of a break of a channel that can be recalculated, it seems like too much confidence in recalculating model
Going to see sar model first because of that (I would not like to explain to people that it should not be used in signaling mode, from my experince so far people tend to think that I am not telling the truth when I say that for a recalculating / repainting indicator, and they think that I am hiding something
)
Thanks for your answer Mladen,
Not sure I have understand what you explain because of my english, sorry
Notably, I don't understand why you think there is a double repainting/recalculating, because in fact we look for the break on the previous LRC that the indicator has already drawing (even if that previous LRC may be recalculating in rare times if there is a new higher high or lower low)
I think there is really 2 things/stages in this indicator
1/ Drawing LRC based on zigzag. Sometimes, not always, the previoux LRC may be recalculating, and the last LRC is already recalculating since the last turning point
2/ Draw the arrows when there is a break on the previous LRC
I hope to be clear (it's clear in my head, but difficult to translate
)
Thanks a lot Mladen, it's very nice to you to try to code it
Zilliq
Thanks for your answer Mladen,
Not sure I have understand what you explain because of my english, sorry
Notably, I don't understand why you think there is a double repainting/recalculating, because in fact we look for the break on the previous LRC that the indicator has already drawing (even if that previous LRC may be recalculating in rare times if there is a new higher high or lower low)
I think there is really 2 things/stages in this indicator
1/ Drawing LRC based on zigzag. Sometimes, not always, the previoux LRC may be recalculating, and the last LRC is already recalculating since the last turning point
2/ Draw the arrows when there is a break on the previous LRC
I hope to be clear (it's clear in my head, but difficult to translate
)
Thanks a lot Mladen, it's very nice to you to try to code it
ZilliqZilliq
Even linear regression channel is a fitting algorithm (meaning that it will change values as current value is changed - that is simple a result of the way how regression fitting of any order is calculated). So, any of the values of the lrc can change as the current value changes. And having zigzag as a criteria, and we know that zigzag can change, then we have a double possibility for a recaclulation
Another idea, perhaps to simplify if you can't draw successive LRC based on zigzag
1/ Can you create an indicator who draw automatically a LRC between the highest and lowest of the x previous candles of RSI ? with RSI based on applied price (close/ low/ typcal price etc...)
And
2/ Draw an Arrow when RSI break this LRC
3/ An option to ameliorate this on: Draw automatically a LRC based on the highest IN overbuy zone, and lowest IN oversell zone
May be it will be simplier to code
Thanks a lot Mladen and have a nice day
Zilliq
An example with my code on PRT
LRC on highest/lowest of the 45 previous candles for example and the green arrow when there is a breakout
Next...
I find a perfect example of why we need to have an applied option to this LRC RSI indicator
On my first picture, I use a RSI based on close and LRC based on ZZ on it
As you see, when the RSI break the LRC, it gives a bad short signal because we go higher just after
But, on the second picture I use a RSI based not on close but on typical price, and as you see, the short signal is Perfect !
Thanks for your attention, and hope you can create it
Have a nice day Mladen
Zilliq
Next...
I find a perfect example of why we need to have an applied option to this LRC RSI indicator
On my first picture, I use a RSI based on close and LRC based on ZZ on it
As you see, when the RSI break the LRC, it gives a bad short signal because we go higher just after
But, on the second picture I use a RSI based not on close but on typical price, and as you see, the short signal is Perfect !
Thanks for your attention, and hope you can create it
Have a nice day Mladen
Zilliq
Zilliq
A question : why is zigzag not a criteria for a new linear regression channel in the example you are showing?
Sorry, I have probably not understand
Of course, for the example I use the zigzag as a criteria
I draw manually, in this example, a LRC based on the zigzag you see (with an extension to look for the break down)
And I put an arrow when the RSi break down this LRC
Do I answer you question ?
Zilliq
As you see on a different picture
1/ I draw manually a LRC based on the zigzag as example
2/ I draw (for this example), an orange line who is the extension
3/ Watch the break down
4/ Put a red arrow where this break down appears
That's a manual example (in the past, not in the present as I want to), but this is what the indicator need to do
1/ Draw a LRC based on the previous leg of the zigzag OR (if it's too difficult) based on the highest/lowest of the x last candles
2/ Watch for a break up or down of the RSI of this last LRC
3/ Put an arrow when it appears
Zilliq