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    indicdeveloper is offline Junior Member
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    Nov 2019
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    Default sRSI VertexFX Indicator

    The sRSI (Sell Relative Strength Index) is a powerful VertexFX client-side indicator based on enhanced implementation of the Relative Strength Index (RSI) indicator.
    The RSI indicator is useful in identifying the trend of the strength as well as the end of the trend. However, one of the drawbacks of the sRSI is that it introduces lag. Another drawback of RSI is that since all price changes are given equal weightage the more recent price changes are not reflected quickly in the calculations. The sRSI solves this drawback by giving weightage to the more recent price changes. The traditional RSI uses only Close prices. The sRSI uses Open, High, Low and Close prices to capture not only the change in trend but also the strength of the trend within the candle.

    We use two levels to identify the strength of the sRSI. The primary Neutral Zone level is used to identify sideways trend. When sRSI is inside the NEUTRAL_ZONE the trend is considered sideways. When sRSI crosses above the Neutral Zone it is considered a bullish breakout, and the trader can enter long positions in such a scenario. When the sRSI crosses below the Neutral Zone it is considered a bearish breakout, and the trader can enter short positions.
    In addition to the Neutral Zone levels sRSI also provides the OverBought and Oversold Levels. When the sRSI crosses above the OverBought Level it is safe to exit the long position. Similarly, when sRSI crosses below the OverSold Level it is safe to exit the short position.

    BUY / EXIT SHORT - Enter LONG (or exit SHORT) at close of candle when the sRSI indicator turns BLUE either from RED or GRAY. The stop-loss can be placed below the nearest Swing Low. Do not enter LONG if sRSI was BLUE before it turned GRAY and turned BLUE again. This ensures that we do not enter in sideways or whipsaw markets.

    SHORT / EXIT LONG - Enter SHORT (or exit LONG) at close of candle when the sRSI indicator turns RED either from BLUE or GRAY. The stop-loss can be placed above the nearest Swing High. Do not enter SHORT if sRSI was RED before it turned GRAY and turned RED again. This ensures that we do not enter in sideways or whipsaw markets.
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