The SRSI is calculated using the following formula:
SRSI = 100 – [100/(1+SRS)]
SRS = Average positive difference/Average negative differencen
The SRSI measures the strength of a security relative to a sixday EMA. The closing price is used for this EMA. The difference is positive when the close is above the six-day EMA. Positive difference = [Close – Moving average]. Difference is negative when the close is below the six-day EMA. Negative difference = [Moving average – Close]. Negative difference values are expressed as positive values, not negative values. If the closing price equals the six-day EMA, then difference = 0 (no change). Smooth positive and negative difference values are based on Wilder’s smoothing technique.
Category NinjaTrader 8 Indicators and More
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