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Relative Spread Strength Indicator

The trading technique, described in Ian Copsey's article, "Relative Spread Strength As A Long-Term Cyclic Tool", helps Forex traders in identifying cycle peaks.

Using Function Builder, one needs to create the Rapid RSI and RSS functions; then, using Indicator Builder, one can quickly write the corresponding indicators and plot them on a price chart.

The following is the code for Mr. Copsey's functions and indicators which can help confirm cycle highs and lows.

RapidRSI Function

function (Price:Numeric = C, Length:Numeric = 14): Numeric;

var   Numerator := 0;
  Dif := 0;
  UpAmt := 0;
  DownAmt := 0;
  UpSum := 0;
  DownSum := 0;
  RapidRSI := 0;
end_var

if HistorySize < Length then return 0;

UpSum := 0;
DownSum := 0;

for Numerator:=0 to Length - 1 do

begin
  DownAmt := 0;
  UpAmt := 0;


  Dif := Price\Numerator\ - Price\Numerator+1\;
  if Dif > 0 then
  UpAmt := Dif;

  if Dif < 0 then
    DownAmt := -Dif;

  UpSum := UpSum + UpAmt;
  DownSum := DownSum + DownAmt;
end;
if UpSum + DownSum <> 0 then
  RapidRSI := 100 * UpSum / (UpSum + DownSum);
else
  RapidRSI := 50;

return RapidRSI;

RSS Function

function (RSPeriod:Numeric = 5,
            EMA1Period:Numeric = 10,
            EMA2Period:Numeric = 40) :Numeric;

var
  Spread := 0;
  RS := 0;
end_var

Spread := SMA(Close, EMA1Period) - SMA(Close, EMA2Period);
RS := RapidRSI(Spread, RSPeriod);

return SMA(RS, 5);

Rapid RSI Indicator

return RapidRSI(C, 14);

RSS Indicator

return RSS(5, 10, 40);

While inserting indicators into a chart (the Insert Indicator dialog box), do not forget to add the 30 and 70 thresholds.


Download to import into Tradecision.

How to use this indicator in Tradecision:
  1. Click Download.
  2. Save this indicator in a safe location on your hard drive.
  3. Open Tradecision and in the Tools menu click Indicator Builder.
  4. In the Indicator Builder dialog, click Import, locate the saved file and then click OK.
The indicator will be added to the Custom Indicators list.
 
Relative Spread Strength Indicator
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