I started this conversation in another thread and decided to dedicate a thread specific to this subject. I use a smoothed RSI in one of my auto traders and want to project what value the RSI will be on the next bar. I will use this to anticipate where to place an entry order or even an exit order. Based on discussions with monpere in the other thread I was able to come up with individual indicators that project price correctly but when used in combination, they don't calculate the correctly. So, I am looking for a solution to this problem. I am providing pictures, indicators, and templates to hopefully simplify and clarify what is currently happening.
Bear in mind, these indicators do not have any error checking included so there are times when some weird lines occur. Please don't worry about those for now. Just scroll to an area of the chart where they don't occur.
The attached zip file contains 3 indicators, 2 modified EMA indicators and 1 modified RSI indicator.
2 templates attached load the indicators configured in different ways to produce the projections.
2 pictures are attached go with the 2 templates and have descriptions of what you are looking at.
Import the zip file and then create charts with the 2 templates.
I am using 6 tick BetterRenko. However, these can be loaded on any fixed dimension bar.
Projection_1.jpg shows the individual indicators. You see 3 lines. The red line is the correct indicator, EMA or RSI. The black lines are the projected values for those indicators. At point A-1 you see a green/up bar with a red line and 2 black lines. The 2 black lines tell you where the EMA will be if the next bar closes either up or down. Notice where the lower black line is on bar 1 and project it to bar 2 which is a red/down bar. The value of the black line at bar 1 should be the same as the red line at bar 2. You can see the reverse behavior at occurence 2. Hopefully this explanation is clear enough so you know what you are looking at.
Projection_2.jpg shows the indicators in 2 different configurations.
Panel 2> Both the EMA and RSI used in this panel are modified to calculate their individual projected values.
1. red line is the smoothed rsi using this formula and is the "real" value, EMA(RSI(14,3),14).
2. upper black line is the projection of an up bar close using this formula, EMA_up(RSIv1(14,3).ProjectedUpClose,14).
3. lower black line is the projection of a down bar close using this formula, EMA_down(RSIv1(14,3).ProjectedDownClose,14).
Panel 3> The EMA in this panel is the stock indicator that comes with NT and the RSI used in this panel the modified version that calculates the projected value.
1. red line is the smoothed rsi using this formula and is the "real" value, EMA(RSI(14,3),14).
2. upper black line is the projection of an up bar close using this formula, EMA(RSIv1(14,3).ProjectedUpClose,14).
3. lower black line is the projection of a down bar close using this formula, EMA(RSIv1(14,3).ProjectedDownClose,14).
Based on the description I provided for the first picture, you can see neither of these combinations is correct. Using panel 3, I placed a red arrow at point 1 to show where the upper black line should be.
Any help in solving this math problem is greatly appreciated.