How To Calculate Relative Strength Index (RSI) in Lua?

Member

by stephon , in category: SEO Tools , a month ago

How To Calculate Relative Strength Index (RSI) in Lua?

Facebook Twitter LinkedIn Telegram Whatsapp Pocket

1 answer

by ervin.williamson , a month ago

@stephon 

To calculate the Relative Strength Index (RSI) in Lua, you can follow the steps below:

  1. Determine the period for which you want to calculate the RSI. The most common period used is 14 days.
  2. Gather the historical price data for the asset you are analyzing, including the closing prices for each day in the chosen period.
  3. Calculate the daily price changes by subtracting the previous day's closing price from the current day's closing price.
  4. Separate the daily price changes into two groups: one for positive changes (gains) and one for negative changes (losses).
  5. Calculate the Relative Strength (RS) by taking the average of the gains over the chosen period divided by the average of the losses over the same period. The formula for RS is: RS = (Average Gain / Average Loss)
  6. Calculate the Relative Strength Index (RSI) using the following formula: RSI = 100 - (100 / (1 + RS))


Here's an example of how you can implement this calculation in Lua:

 1
 2
 3
 4
 5
 6
 7
 8
 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
function calculateRSI(period, closingPrices)
    local gains = {}
    local losses = {}
    
    for i=2, #closingPrices do
        local priceChange = closingPrices[i] - closingPrices[i-1]
        
        if priceChange > 0 then
            table.insert(gains, priceChange)
            table.insert(losses, 0)
        else
            table.insert(losses, math.abs(priceChange))
            table.insert(gains, 0)
        end
    end
    
    local averageGain = 0
    local averageLoss = 0
    
    for i=1, period do
        averageGain = averageGain + gains[i]
        averageLoss = averageLoss + losses[i]
    end
    
    averageGain = averageGain / period
    averageLoss = averageLoss / period
    
    local RS = averageGain / averageLoss
    local RSI = 100 - (100 / (1 + RS))
    
    return RSI
end

-- Example usage
local closingPrices = {100, 105, 110, 108, 115, 112, 120, 118, 122, 125, 130, 128, 135, 132}
local period = 14

local rsi = calculateRSI(period, closingPrices)
print("RSI: " .. rsi)


This code calculates the RSI for a given set of closing prices and a chosen period. You can adjust the closingPrices and period variables in the example usage section to test the calculation with different data.