Cutler's RSI

Cutler's RSI is a slight variation of Welles Wilder's original Relative Strength Index. The RSI is a momentum oscillator used to identify overbought and oversold conditions in a commodity futures market by keying on specific levels, generally 30 and 70, on a chart scaled from 0 to 100. The study can also be used to detect the following:

Movement which might not be as readily apparent on the bar chart
Failure swings above 70 or below 30 which indicate reversals
Support and resistance
Divergences between RSI and price

Cutler's RSI is calculated as follows:

• RSI = 100 - (100 / ( 1 + RS ) )
• RS = UPAV:x / DNAV:x, and . . .
• UPAV:x = (E, period's Closes UP) / period
• DNAV:x = (z: period's Closes DOWN) / period
• A Close UP (or DOWN) = CLOSE - CLOSE previous

If the difference is positive, it is a Close UP. If the difference is negative, the sign is changed and it is a Close DOWN.

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