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INTRODUCTION RSI- RELATIVE STRENGTH INDEX MOVING AVERAGE BOLLINGER BANDSSUMMARY.

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Presentation on theme: "INTRODUCTION RSI- RELATIVE STRENGTH INDEX MOVING AVERAGE BOLLINGER BANDSSUMMARY."— Presentation transcript:

1 INTRODUCTION RSI- RELATIVE STRENGTH INDEX MOVING AVERAGE BOLLINGER BANDSSUMMARY

2 INTRODUCTION The Strategy Advisor, is an advanced algorithm tool, which helps traders by providing them with a strategy calculator for making more accurate predictions. The Strategy Advisor uses three well known formulas to calculate results – RSI, Moving Averages and Bollinger Bands.

3 RSI FORMULA This momentum oscillator developed by J. Welles Wilder, calculates price movement using speed and changes as its measuring points. This momentum indicator compares the scope of latest gains to latest losses in an attempt to determine overbought and oversold assets based on the closing prices of a recent trading period.

4 MOVING AVERAGE The Moving Average is a widely used indicator that calculates information and analyzes data points by creating a series of averages. These averages are calculated using a number of subsets taken from a complete set of data. The Moving Average is used to indicate the direction of the current trend and helps provide clean data by removing daily price fluctuations found in the financial data.

5 BOLLINGER BANDS ALGORITHM Is based on a technical analysis tool invented by John Bollinger, it uses a simple moving average and two standard deviations. There is middle band, one upper band and one lower band. The algorithm creates a moving channel of prices composed of an over sell channel and over bought channel. The algorithm then compares the last executed price in the channel and creates a sell or a buy signal.

6 SUMMARY The Strategy Advisor creates a professional atmosphere by providing projected trading strategies The Strategy Advisor uses the most advanced algorithms for these calculations The Strategy Advisor serves as another tool for assisting traders to make rational and not “emotional” trades


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