DSL – RSI
DSL – RSI
RSI is mainly used in combination with levels or with a sort of signal line. Some prefer the levels some, on the other hand, “signal” line. We could dispute which one is the better, but it probably mainly depends on the trading style.
Here is a version that, in some way, combines the two types.
The discontinued signal line idea is simple: when the RSI value is above the central value (rsi being 50), then only the upper signal line is calculated, and the lower signal line value is “inherited”. When the value of RSI is below the central value then the lower signal line is calculated and the upper signal line is “inherited”. That way we are getting a kind of combination of levels and signal lines without a need to change the value of the RSI itself. As it is obvious it has its better sides compared to both methods (especially avoiding some problems with “trends” when signal lines alone are used). In any case, extensive testing is advised.