The “Track Price” information available in MarketSmith (aka the yellow box) is quite helpful to get specifics on price and volume action. I wrote a similar indicator for TradingView that you can use to keep tabs on the same information.
Here’s how the track price information is shown on MarketSmith:
New Concepts in Technical Trading Systems, originally published in 1978 by J. Welles Wilder, is an excellent book to dig into technical analysis. One of Wilder’s most well known indicators is the Relative Strength Index (RSI).
The RSI is an oscillator that measures the velocity of directional price movement. When it moves up very quickly, eventually it will be considered overbought, the opposite for oversold. In these scenarios, a reversal may be forthcoming. In addition, the RSI is often used to view areas of divergences.
Here’s how Wilder defined the RSI:
RS = Average of 14 day’s closes up / Average of 14 day’s closes down
RSI = 100 - (100 / 1 + RS)
Continue readingIn the latest release of my RS Line indicator for TradingView, I’ve added support for a visual callout when the RS Line has reached a new high before the stock price is at a new high.
Historical research of past big winners has shown that an RS Line at a new high before the price reaches a new high, may proceed a significant move up. This very bullish signal is now much easier to identify.
There are two visual callouts that have been added to the RS Line indicator. First is the RS Line hitting a new high before the price hits a new high. Here’s how the indicator looks when RS Line is at a new high before the price, the example is from EBay in 2003.
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