tag:blogger.com,1999:blog-67516534399526249212016-09-07T21:27:39.243-07:00RSI 2RSI 2. What is RSI 2. How to calculate RSI 2. How to use 2 period RSI effectively as a trading strategy.Pinoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6751653439952624921.post-1018653000795556912009-05-11T11:43:00.000-07:002009-05-11T11:52:36.974-07:00What is RSI 2?<div style="text-align: justify;">Okay, the basic question. What is RSI 2 or 2 day RSI.<br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To answer that question on needs to know what RSI is. RSI is a technical indicator which is calculated using closing prices of any stock or index for x number of days. Now this x is to be specified by you, the person who is calculating the figures for RSI.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Typically, this x is taken as 14. So RSI is usually calculated using the figures for alst 14 days. RSI 2 therefore, refers to RSI calculated taking just the last two data points. I was surprised the first time I heard this. How can a RSI calculated for such a small period be of any use?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The answer is, just like RSI is used to determine overbought and oversold levels, so is RSI 2. Its typically used in mechanical or automated trading systems to make profits. We first calculate RSI 2 for historical data. Then we decide a level which we consider overbought or oversold. Typically it would be 90/95/98/99 or 10/5/2/1 for overbought/oversold respectively. So one sells when market is overbought and buys when market is oversold. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This RSI 2 system is essentially used to capture short term counter trend moves rather than follow any trend following system.</div>Pinoreply@blogger.com0tag:blogger.com,1999:blog-6751653439952624921.post-24712725815634761562009-04-29T11:21:00.000-07:002009-04-29T11:23:11.845-07:00How to calculate RSI 2?Here is how. Download this excel sheet. It has the exact way how to calculate RSI 2 for any stock or index with the formulas etc all present. Just look and understand, or even simpler, just copy paste your data in the data's place and you are done.<div><br /></div><div><a href="http://www.ziddu.com/download/4515372/NiftyRSI2Calculation.xls.html">You can download the excel sheet with RSI 2 calculation from here.</a></div>Pinoreply@blogger.com1