Exercise

Implementing an indicator - III

In financial markets, the goal is to buy low and sell high. The RSI can predict when a price has sufficiently pulled back, especially with a short period such as 2 or 3.

Here, you'll create a 3-period RSI, or RSI 3, to give you more practice in implementing pre-coded indicators. The quantstrat and quantmod packages are loaded for you.

Instructions

100 XP

Use add.indicator() on your existing strategy strategy.st. Follow the example code from previous exercises.
Provide the RSI function as the name argument.
Specify the desired arguments of RSI, using the closing price of mktdata and a lookback period n of 3 days. Don't forget to use the quote() function!
Label your new indicator "RSI_3".