Intraday Relative Strength Index (IRSI)
factor.formula
Positive cumulative amplitude (USUM)(N) =
Negative cumulative amplitude (DSUM)(N) =
Intraday Relative Strength Index (IRSI)(N) =
in:
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The size of the time window for calculating the intraday relative strength indicator, in trading days. This parameter determines how sensitive the indicator is to recent price changes. Smaller N values make the indicator more sensitive, while larger N values make the indicator smoother.
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The closing price of the i-th trading day indicates the last transaction price of the stock at the end of that trading day.
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The opening price of the i-th trading day indicates the initial transaction price of the stock at the beginning of the trading day.
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Conditional judgment function, used to judge the relationship between the closing price and the opening price of the day. If the condition is true, it returns the value of the second parameter; otherwise, it returns the value of the third parameter. It is used to distinguish between positive and negative intraday price changes.
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The cumulative sum of the difference between the closing price and the opening price for all trading days with a closing price higher than the opening price within the specified time window N. It reflects the strength of the bullish force in the market during intraday trading.
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The cumulative sum of the difference between the opening price and the closing price on all trading days with the closing price lower than or equal to the opening price within the specified time window N. It reflects the strength of the short position in the market during intraday trading.
factor.explanation
The value range of the intraday relative strength index (IRSI) is 0 to 100. Generally speaking, when the IRSI value is lower than 30, it means that the stock may be oversold in intraday trading, which means that the price may be underestimated and there is a potential for rebound; when the IRSI value is higher than 70, it means that the stock may be overbought in intraday trading, which means that the price may be overvalued and there is a risk of a correction. It should be noted that overbought and oversold are not absolute buy and sell signals, but need to be combined with other technical indicators and market factors for comprehensive analysis. In practical applications, the overbought and oversold thresholds can be adjusted according to different trading products and strategies, such as 20 and 80, or even smaller thresholds to increase sensitivity, which needs to be adjusted according to actual conditions.
The core idea of this indicator is to measure the relative strength of the buying and selling forces during the intraday trading period. When the IRSI continues to rise, it often means that the bulls are dominant during the day, and vice versa, the bears are dominant. Therefore, in addition to the overbought and oversold ranges, the changing trend of this indicator can also provide certain trading signals.