RSI Cumulative Indicator

Concept: Definedge

RSIC 1 : 14

RSIC 2 : 5

RSIC Avg : 9

There are two lines plotted below the chart in the RSI Cumulative indicator. 

1 – Green line represents RSI Cumulative indicator

2 – Red line represents the Average

The relative strength index (RSI) is one of the most popular momentum indicators.

According to the pattern of closing prices in the data, it calculates the strength of prices over the past 14 periods.

The cumulative RSI indicator combines the 14-period and 5-period RSI indicators on the chart. It shows the trend and the momentum on short-term as well as medium-term. This tool is useful for identifying stocks that are experiencing strong momentum.

When RSI Cumulative is rising it indicates a bullish trend. When RSI Cumulative is falling it indicates a bearish trend.

RSI cumulative indicator is considered bullish when it is above 100 and above its average line.

The RSI indicates bearishness when it falls below 100 and below its average line.

The RSI above 140 is considered to be an overbought condition, while the RSI below 60 is considered to be an oversold condition.

To learn more about RSI, please click here.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.