Nesting a EMA with an RSI

[michelle99]

Hi there,

I need to draw a 14period RSI and over the top of my RSI I would like a 9period SMA and a 45period EMA.

I *think* I have done that with the attached chart. Could somebody please double check me as I often seem to get nesting incorrect.

Thanks very much in advance,
Michelle

[NinjaTrader_Jim]

Hello,

Thanks for writing in today.

It looks like you are performing an EMA on your RSI instead of displaying it on top of your RSI.

To display the indicators on top of each other, I would suggest adding them all to your main data series from your chart, and moving the indicators to a separate panel like you have in your picture.

1. Right click within your chart and select Indicators...
2. Add an RSI EMA and SMA with the periods you desire.
3. Make sure the input series parameter for each indicator is your CT 03-17 240 minute data series.
4. For each indicator, set the panel parameter to 2.

The order of indicators on the bottom left of the indicators window will determine the order in which they will be drawn. You may also adjust the order the indicators are displayed by clicking on the drawing object and scrolling with your mouse wheel with the shift key held.

Indicators can be nested in a way that they are performed on one another's data series. To do this we would change the input series to the indicator we would like to calculate data from.

For your reference I will link you to the help documentation on working with indicators: http://ninjatrader.com/support/helpG...indicators.htm

Please let me know if I may be of further assistance.

[michelle99]

It looks like you are performing an EMA on your RSI instead of displaying it on top of your RSI.

Hi there Jim, thank-you for your reply. Sorry I think my initial question was worded quite confusingly. What I want is an RSI with a 9SMA and 45EMA which are both based upon the RSI. That is, just like the 9SMA (the "Smooth" parameter which I set in the RSI indicator) is based off the RSI, I want the 45EMA based off the RSI.

Q1. Could you please confirm that I do indeed have this?

Q2. Also please confirm that "Smooth" parameter is a SMA on the RSI indicator

Thanks again

[NinjaTrader_Jim]

Hello,

Thanks for writing back.

To answer your first question that regarding how you have nested indicators setup: You're close. You have the EMA indicator set to a period of 9 instead of 45, but you are referencing the input series as the 14 period RSI correctly. Your SMA, however, is not using the RSI indicator as the input data series, and it is using a period of 10.

The key to remember is that the indicator's data series and period must be set in the parameters section of the indicators window. The input data series should always point to the same indicator with the same period and smoothness value.

I have attached a picture of what the indicators will look like when correctly nested:



To answer your second question, the smooth parameter performs a moving average but is not technically an SMA. Please see check the following links for educational information on the RSI indicator.

Traders.com: http://traders.com/documentation/fee...rs/ehlers.html

Wikipedia: https://en.wikipedia.org/wiki/Relative_strength_index

If you have any other questions, please don't hesitate to ask.

[michelle99]

Hello,
To answer your second question, the smooth parameter performs a moving average but is not technically an SMA. Please see check the following links for educational information on the RSI indicator.

Traders.com: http://traders.com/documentation/fee...rs/ehlers.html

Thanks Jim, I ended up setting the "Smooth" Parameter =1 which means I don't see it.

Okay I think I have it now! This is my final RSI (see attached).

Thanks for your help

Michelle