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2004issue C051-10

Assembling a bounded RSI path

A five-bar RSI of midpoint price is recentered by subtracting 50 and scaled by 0.1, then passed through a nine-bar weighted average and mapped as (exp(2x)-1)/(exp(2x)+1). Entries fire when that mapped series crosses 0.5 or -0.5.

  • Relative strength index is a bounded oscillator of ordered closes that is recentered, smoothed, and then passed through a hyperbolic mapping before a level is crossed.
  • The RSI path recenters a five-bar RSI of midpoint price by subtracting 50 and scaling by 0.1 before a nine-bar weighted average.
  • The mapped RSI series is formed as (exp(2x)-1)/(exp(2x)+1) from that weighted average.
  • Entries fire when the mapped RSI series crosses 0.5 or -0.5, with the opposite pair used for short exits.
Entries in this reading1 entry
Current trackRelative Strength Index261 readings

The historical workflow

In this historical workflow, relative strength index is a bounded oscillator of ordered closes that is recentered, smoothed, and then passed through a hyperbolic mapping before a level is crossed.

The path is built from named steps in order. Each step takes the series from the step before it.

Assemble the RSI path

Begin with midpoint price and form a five-bar RSI.

Recenter that RSI by subtracting 50, then scale the recentered values by 0.1.

Pass the scaled series through a nine-bar weighted average. That weighted average is the input to the next step.

Form the mapped series

From that weighted average, form the mapped RSI series as (exp(2x)-1)/(exp(2x)+1).

The mapped series is the series that is later compared with a level.

Read the crossings

Entries fire when the mapped RSI series crosses 0.5 or -0.5, with the opposite pair used for short exits.

QQQ daily inverse Fisher RSI with 0.5 trigger lines

On this QQQ daily window the mapped five-bar RSI spends most of late 2003 pinned near +1 or just under -0.5, so the crossings that matter are the two trigger levels rather than mid-range wiggles. Points were read from the Wealth-Lab Inverse Fisher Demo screenshot; the right-edge value 0.989 is printed on that raster.
On this QQQ daily window the mapped five-bar RSI spends most of late 2003 pinned near +1 or just under -0.5, so the crossings that matter are the two trigger levels rather than mid-range wiggles. Points were read from the Wealth-Lab Inverse Fisher Demo screenshot; the right-edge value 0.989 is printed on that raster.QQQ · Daily · 2003-06-23T00:00:00.000Z to 2003-12-31T00:00:00.000Z

Construction in the demo is a 5-bar RSI, recenter by subtracting 50, scale by 0.1, then a 9-bar weighted average before the inverse Fisher map. All y values except the printed 0.989 are approximate reads from the plot grid.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
10 of 26 in the Relative Strength Index track
20041-1 pp.Next on Relative Strength IndexConstructing RSI on highs, lows, and reverse targetsThe relative-strength-index of an arbitrary series is a 0-100 ratio of a smoothed up-change series to the sum of that series and a smoothed down-change series.
All readings on this track · 26 readings
  1. 1991Constructing the relative strength index from seed and recursive averages
  2. 1991Inverting relative-strength-index closes for same-session rules
  3. 1991Seeded averages and the recursive-update
  4. 1993Restating relative-strength-index parameters after a smoothing change
  5. 1993Relative momentum construction by stretching the relative strength lookback
  6. 1994Constructing relative strength index lookbacks, bands, and confirmation filters
  7. 1994Building the relative-strength-index from signed close changes
  8. 1997Constructing the relative strength index as a bounded up-down close oscillator
  9. 2002Four-line oscillator construction for rule-based entries
  10. 2004Assembling a bounded RSI path
  11. 2004Constructing RSI on highs, lows, and reverse targets
  12. 2004Reverse-engineered RSI as an explicit next-bar price target
  13. 2006Self-adjusting RSI thresholds from the oscillator's own spread
  14. 2006Constructing adaptive overbought and oversold levels for a relative strength index
  15. 2006Relative Strength Index 50-line entry beyond the 70 and 30 extremes
  16. 2007Lock a followable rule set before testing RSI exits
  17. 2008RSI bands as a one-day shift of reverse-engineered levels
  18. 2008Constructing an asymmetrical RSI from adaptive up and down averages
  19. 2010Building a bounded oscillator from a rainbow smoother, relative strength, and inverse Fisher
  20. 2011Two-horizon weekly RSI with moving averages and stops
  21. 2011Percent-offset simple moving average bands with relative-strength confirmation
  22. 2011Fast and slow relative strength index as one mechanical rule book
  23. 2011Price-zone oscillator construction from signed closes
  24. 2015Constructing a zero-lag oscillator against a relative strength index baseline
  25. 2015Relative Strength Index as a baseline in 2015 software listings
  26. 2018Building a Fisherized deviation-scaled oscillator
By fieldIndicators and filters874 readingsBy year2004180 readings
All 261 readings tagged Relative Strength Index
Also on Relative Strength Index5 readings
1985Session windows, volume weights, and divergence in RSI construction1986Constructing bounded relative-strength overlays from oscillator limits1987Constructing the commodity channel, average directional, and relative strength indexes on a shared cycle scale1987Constructing scaled OHLC matrices for study overlays1987Evaluating silver moving averages and RSI by scoring rule