Barbara Star’s article, “The 350 Swing Trade,” discusses a trading methodology built around a 3 period RSI. This includes several indicators, coloring the price bars, and placing diamonds above and below the price bars.

Almost all the indicators are built into MetaStock. The RSI 3 is just the normal RSI set to use 3 time periods. The RSI MA is a 3 period simple moving average of the RSI 3. the Donchian Channels are not built in.

1. Tools menu, select New to open the Indicator Editor for a new indicator.

2. x:= Input("periods",2,100,20);

   HHV(H,x);

   LLV(L,x);

   (HHV(H,x)+LLV(L,x))/2

   5. Ok to close the Indicator Editor.

   The coloring of the price bars and the diamonds can be done with an expert advisor.

   1. Tools > New to open the Expert Editor.
   2. Highlights tab.
   3. New to create a new symbol.
   4. Color to “Green”.

   5. RSI(3)>50

      9. OK
      10. New to create a new highlight.
      11. Color to “red”.

      12. RSI(3)<50

          14. OK
          15. Symbols tab.
          16. New to create a new symbol.

          17. Mov(RSI(3),3,S)<20

              19. Graphics tab
              20. Diamond
              21. Green
              22. Below Price Plot”
              23. Below Symbol”
              24. OK
              25. New to create a new symbol.

              26. Mov(RSI(3),3,S)>80

                  28. Graphics tab
                  29. Diamond
                  30. Red
                  31. Above Price Plot”
                  32. Above Symbol”
                  33. OK
                  34. OK to close the Expert Editor.
                  William Golson
                  MetaStock Support