The Recursive Trendline (RTL) indicator shows the trend as a recursive line.
It has two parameters:
- Period – calculation period;
- Applied price – price used for calculations.
Calculation formula:
RTL[i] = (1 - Alpha)*RTL[i-1] + Alpha*(Price[i] + b0[i] - b0[i-1]), TOSC[i] = (RTL[i] - EMA(Period, Price))
where
Alpha = 2/(Period + 1) b0[i] = (1 - Alpha)*b0[i-1] + Price[i]
Possible interpretation: if the line is below the price – Buy, if the line is above the price – Sell.
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