Posted by HanaDaddy | Posted in My thoughts on the market | Posted on 04/04/2007
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I have inserted an extra column named ‘adjclose’ to keep track of the normalized closed prices. So if a 1 to 2 split occurs , all the past prices will be divided by 2 and stored into adjclose column. And the rsi7 is calculated based on this adjusted close price to get the correct values.
I will need to run few scripts manually when the split occurs, so it is somewhat inconvenient for me.
Posted by HanaDaddy | Posted in My thoughts on the market | Posted on 04/03/2007
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RSI daily report generated for 04/03/2007 have 3 stocks listed for ALL(Monthly,Weekly,Daily) RSI7 under 30. And NIKE (NKE) is the one of them. And has RSI7 value of just 4. If this was the correct value, I would have loaded up with NIKE right away.
Daily,Weekly,Monthly all below 30
Total : 3
| symbol |
price |
change |
percent |
rsi7m |
rsi7w |
rsi7d |
| NKE |
53.20 |
-0.01 |
-0.0% |
21.43 |
13.32 |
4.02 |
| BBD |
20.36 |
+0.36 |
+1.8% |
26.89 |
17.13 |
8.85 |
| HOV |
24.53 |
+0.16 |
+0.7% |
27.30 |
27.75 |
20.66 |
But sadly , the value was incorrect caused by the stock split. Both NKE and BBD’s stock have split today. I did not think of the stock splits when I implemented RSI formula originally.
I have checked other websites to see how their calculations are done.
For www.stockcharts.com, the RSI7 daily value is 47.96 which looks more like a correct value. They normalized the past prices dividing by 2 ( since the stock has been split from 1 to 2 ratio) and calculated the RSI value.
But www.easystock.com doesn’t account the split just like I didn’t. Their daily RSI7 value is just 4 , same as mine.
It feels like that the stockchart.com method is correct, but I don’t like that the normalized historical are showing in the chart.(All past prices are divided by 2)
I will need some time to think how to implement it.
Posted by HanaDaddy | Posted in My thoughts on the market | Posted on 03/29/2007
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Yesterday, we have HOV (Hovnanian Enterprises, Inc. ) with all rsi7m, rsi7w, and rsi7 daily under 30s . HOV design, constructs, and sell Condo single houses. and so on.
So here is some past history where its rsi7 values were below 30s.
And here is the graph from finance.google.com.
The red circle that I marked indicates the period where the stock was at the lowest point in the last year and they do match with the above RSI7 history (8/9 ~ 8/14).
Also , note that the stock was in the price range of $70 during the year 2005.
Many people forecast grim housing market so I believe it would be better to watch the stock for a while.
