What's New: Smoothed RSI & Iron Ore

By Colin Twiggs
February 27, 2017 1:00 a.m. EST (5:00 p.m. AEDT)

Iron Ore Spot Prices

Iron Ore end-of-day spot price is now available in the Commodities (cm) folder, with the symbol TR_cm.

Iron Ore

Spot price is for 62% Fe, CFR China in $US/metric tonne.

Smoothed RSI

In response to requests from the Forum we have added a smoothed version of Welles Wilder's Relative Strength Index (RSI) to the list of indicators.

Here is an example using Amazon [AMZN].

Smoothed RSI

Sell signals, when Smoothed RSI reverses below 80*, may be susceptible to whipsaws, as shown by the red arrow in August 2015.

However, Smoothed RSI seems to deliver well-timed buy signals (when it recovers above 20) indicated by the green arrows after secondary corrections.

* The failed swing in September 2014 also presents a valid sell signal.

Users will need to experiment with varying time frames in order to achieve the optimum trade off between responsiveness and accuracy.

Setup

To access Smoothed RSI before the next update, upgrade to the latest Beta version. On the chart menu, select Help >> Upgrade to Latest Beta.

You will find the new indicator under Indicators >> Smoothed RSI.



Give me six hours to chop down a tree and I will spend the first four sharpening the axe.

~ Abraham Lincoln

Colin Twiggs

Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.