Indicators: RTL

[Automated-Trading]

RTL:

Trend indicator Recursive Trendline (RTL). It has two parameters:

• Period - calculation period;
• Applied price - price used for calculations.

Calculation formula:

RTL[i] = (1 - Alpha)*RTL[i-1] + Alpha*(Price[i] + b0[i] - b0[i-1]),
TOSC[i] = (RTL[i] - EMA(Period, Price))

where

Alpha = 2/(Period + 1)
b0[i] = (1 - Alpha)*b0[i-1] + Price[i]

Possible interpretation: if the line is below the price - Buy, if the line is above the price - Sell.

Author: Scriptor