The Relative Strength Index or the RSI is a very popular momentum oscillator for identifying stocks that are either overbought or oversold. RSI in the oversold area, which is below 30 means that the stock was sold too aggressively and prices may bounce back to the average. A caveat in using RSI is that in strongly trending markets, prices may continue to stay in either overbought and oversold region for extended periods of time. It is highly suggested to use RSI with other indicators or with classical charting techniques.
The standard RSI period is 14 days but you can freely adjust it to match your own trading strategy. For this screener, it's purpose is to identify stocks that are in either extremes so the trader can properly make informed trading decisions.
To use this script, simply copy and paste the code below in your VAI Script Editor, save it and run! You can run it in the charts module to display the signals on the chart or run it in the screener module, which will show all the signals for that day.
You can find more tutorials here https://www.vaianalytics.com/knowledge-base/
//RSI Filter
// Set variables
// Syntax is RSI(parameter,period)
Set RSI = RSI(close,14)
// Set definition of your "buy and sell" conditions which we'll rename to overbought and oversold
Set Oversold = RSI<30
Set Overbought = RSI>70
// The signal function will allow VAI to read your "buy" and "sell" conditions.
signals(oversold,overbought)
//end
