Intraday Strength Index
factor.formula
USUM(N) =
DSUM(N) =
IMI(N) =
in:
- :
The time window size for calculation, which represents the number of trading days or time periods used to calculate USUM and DSUM.
- :
Closing price on the i-th trading day.
- :
The opening price of the i-th trading day.
- :
Take the maximum value function and return the larger value of a and b.
factor.explanation
The Intraday Strength Index (IMI) measures the relative strength of intraday buying and selling forces by calculating the ratio of the sum of the magnitude of the ups (closing price is higher than the opening price) and the magnitude of the downs (closing price is lower than or equal to the opening price) in a specified time window. USUM represents the sum of the magnitude of the ups and DSUM represents the sum of the magnitude of the downs. The IMI value range is between 0 and 100.
Generally speaking:
-
When the IMI value is higher than 70, it is usually regarded as an overbought signal, indicating that the buyer's power is strong and the stock price may face the risk of a correction or reversal.
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When the IMI value is lower than 30, it is usually regarded as an oversold signal, indicating that the seller's power is strong and the stock price may face the opportunity of a rebound or reversal.
It should be noted that the overbought and oversold thresholds of the IMI indicator are not absolute and can be adjusted according to the characteristics of the market or individual stocks. At the same time, this indicator should not be used alone, and should be combined with other technical analysis tools and market information for comprehensive judgment.