So, we can only have either zero or a positive number. As you can see, there can never be a positive number for both the Up Close and the Down Close of the same bar, because obviously, there can never be a close that is both greater and lower than the close of the previous bar. So let’s make some considerations about these numbers. So we start with a 5.4, then we have a zero, then another zero, zero again, 3.3, 0.8, and at the end, in the last case, another zero. Then we have zero again because the level of this Close is below the Close of the previous day.

3.1 is the second value, because today's Close is higher than the Close of the previous bar. In the first case, as you can see, the Close is lower than the Close of the previous bar, so there is no Up Close. So let's define what these Up Closes are in a historical series. Here it is, this is what we call a “Down Close”. The same could be said for the Down Close, that is, when the Close of today's bar is lower than the Close of yesterday's bar. Here is the positive difference between two closes, and we will call this “Up Close”. So if the Close of today's bar is higher than the Close of yesterday's bar we'll have an Up Close. Here we can see a classic chart with time bars. The first concept we need to build this oscillator is the concept of Up and Down Close. First of all, I'd like to point out that, like the ADX, this oscillator was also made by Wilder Welles in the late seventies and it was presented for the first time in the book called “New Concepts in Technical Trading Systems”. Now, let’s take a look at the process of calculating this oscillator. Before starting, however, if you haven't already, I invite you to subscribe to this channel by clicking on the bell so that you can stay updated on the release of new videos. After the theoretical explanation, in fact, we will see together a couple of approaches to understand what can be done with this number. Of course, the goal is to find new edges in the markets and be profitable with our trading systems. So as usual, I don't want to just show you a curve under a chart, but I’d like to tell you how to calculate it step-by-step. Why do I want to speak about this indicator? Well, because I think it's extremely useful to know how it is built. It's called Relative Strength Index, also known as RSI. Today I want to speak about another very famous indicator for those who work in the markets.

I’m Davide Tagliabue, one of the coaches at the Unger Academy.

Tradestation 9.5 divide by zero error