RSI indicator value

[rana.irfan]

Hi,

I used RSI indicator in my strategy.I calculate RSI values on a daily bar.RSI indicator started calculation after 20 bars complete.Is it possible to calculate values before 20 bars? For example after 2 or 3 daily bars it shows values on the chart.

Thanks,
Irfan

[NinjaTrader_CalH]

Hi Rana.irfan,

Thank you for your post.

You will need to create a new script with the same code as the RSI and input BarRequired in the Initialize section of the code.

To create a new RSI -

• Tools -> Edit NinjaScript -> Indicator -> RSI
• Right click in the code editor and select Save As...
• Give the new indicator a name
• Click Ok

Input in the Initialize section of the code BarsRequired = Value.

Replace value with a number of your choice.

Below is a link on the the BarsRequired,
http://www.ninjatrader.com/support/h...rsrequired.htm

Let me know if I can be of further assistance.

[Harry]

Hi,

I used RSI indicator in my strategy.I calculate RSI values on a daily bar.RSI indicator started calculation after 20 bars complete.Is it possible to calculate values before 20 bars? For example after 2 or 3 daily bars it shows values on the chart.

Thanks,
Irfan

NinjaTrader does not display values for the first 20 bars by default. This is not really a good solution because the training period - this is the period required before the indicator produces exact results - can be longer or shorter.

For example:

A SMA(14) will show an exact value after 14 bars, so you could change BarsRequired and set it to 14. An EMA(14) will probably take between 30 and 40 bars, before it shows an exact value. The reason is that the EMA uses the prior bar's EMA to calculate the current bar's EMA. As the prior bar's EMA was erroneuos, the current bar's EMA will be also false. As only a fraction of the error is transmitted, the EMA slowly becomes more and more accurate. But it takes a longer time than the SMA. All IIRs (infinite impulse response filter) have a longer training period. FIRs (finite impulse response filters) like the SMA have a defined training period.

But your question was about the RSI. Let us assume that you use a RSI(14,3).The RSI - developed by Welles Wilder - uses exponential smoothing to calculate the average upmoves and downmoves, therefore it behaves as a IIR filter. The same is true for the second plot of the RSI, which is an exponential moving average of the first plot.

Therefore the RSI(14,3) has a training period of at least 30 - 40 bars, and you gain nothing, if you display the false values that are calculated for the first 20 bars!