Forecasting or Predicting a Future RSI (14) Reading

jasoneverettphillips

Hi Fellow s.c.a.n. members,

I don't know if this question has already been asked or not and I apologize if it has. I was not able to find an answer using the site's 'search' function.

What I am trying to figure out is if there is a formula or calculation that would assist in predicting (approximately) what the price of a given stock would be at a given RSI (14) reading, using as inputs the current RSI (14) reading and the current stock price.

For example, the price of BUD is currently $89.61 and the current Monthly RSI reading is 38.33.

What I am trying to determine is an estimate for the price, approximate price, or approximate range of prices that BUD would be expected to trade at were the stock to read a 30 on the Monthly RSI (14).

I am not sure whether a) this is possible or b) how accurate any forecasts would be, however I think some would agree that if it were accurate this type of calculation could prove useful.

Any help is greatly appreciated.

Thanks for your time.

Jason

markd

I would think you could do this in Excel or another spreadsheet.

You would need the formula for the indicator and a data set.

You would know the past data points up to today. Then you would have to provide values for the missing data up to the future date. Some combinations will provide solutions over 30, some won't.

If you are missing only one data point, then you would solve for "x", the missing data point, just as you would a simple algebra problem.

If you are missing several data points, it gets much more complicated (and beyond my limited math education). But, you can make reasonable guesses about future data by looking at the variations in past data. For instance, you could just assume that the close will advance a quarter point a day - then plug in those values and see when the indicator would cross the threshold value.

jasoneverettphillips

Thanks very much for your feedback Mark.

I managed to find this calculator online (costs $25, I have no affiliation with the co., but it saved me quite a bit of time).

http://www.macroption.com/rsi-calculation/

I believe this calculator may have just earned a new spot in my toolbox.

Jason