Relative Strength Index with Bollinger Bands
DYNAMIC RSI: the relative strength index, combined with Bollinger Bands
The RSI is a Dynamic indicator of the classic RSI, developed by Nico Bakker.
The classic RSI is an oscillator, which gives a buy signal when the indicator by 20 or 25 line falls and rises again. Among the 20 or 25 is the value after all of sold.
The classic RSI rises by 80 or 75 line is the value of purchased and indicates an overbought value and can take a short position when the RSI line down the 80 or 75 cuts.
The classic RSI gives good signals but these signals are rare.
The Dynamic RSI uses the same principle but the solid lines at 75 or 80 or 25 and 20 are replaced by Bollinger bands around the RSI.
Buy signal: the RSI leaves the lower band and turns up again in the lower band.
Sell signal: the RSI rises above the upper band and again crosses the upper band in the downward sense.
at 11:12 AM