Larry Conner's "RSI(2)" Scan

Joujou
Joujou ✭
edited March 2015 in Scanning
In Published Scans (ChartSchool : http://stockcharts.com/school/doku.php?st=*+scan&id=chart_school:scan_library:published_scans:published_scans), there is a scan named : Larry Conner's "RSI2" Scan.
Here it is:

[type = stock]
and [today's SMA(20,volume) > 40000]
and [today's SMA(60,close) > 20]
and [today's close > today's SMA(200,close)]
and [5 x today's RSI(2)]

The scan syntax is correct but the last line seems weird. Can someone explain to me what the number "5" means?
And if it has meaning, where can I find the syntaxe rule of this form of coding?
Thanks a lot for your help.

Best Answer

  • gord
    gord admin
    edited March 2015 Answer ✓
    Joujou, here's the link to the details and analysis of the RSI2 scan, for buy and sell signals.

    http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:rsi2

    RSI is a bounded oscillator with a max of 100 and a min of 0.

    With respect to the clause; "and [5 x today's RSI(2)]", this clause is part of the Buy signal scan. The Sell signal scan uses the clause " and [today's RSI(2) x 95]".

    So in the Sell signal scan the clause "and [today's RSI(2) x 95]", means the RSI(2) has crossed above 95, overbought, (or from the other point of view, 95 has crossed below RSI(2)).

    So in the Buy signal scan the clause "and [5 x today's RSI(2)]", means 5 has crossed above RSI(2), (or from the other point of view, RSI(2) has crossed below 5, oversold).

    hope this helps

    cheers Gord

Answers

  • Joujou
    Joujou ✭
    Your explanation was crystal clear!
    Thanks so much.
    Joujou

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