Sift: Technical Signal Tracker

A terminal-based quantitative tool developed to identify market opportunities using Pivot Point structures and RSI momentum. Disclaimer: This tool provides data-driven signals only, not investment advice.

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(No Python or installation required. Access directly from your browser!)

Built With

• Streamlit: Web Application Framework
• yFinance: Market Data API
• Pandas: Data Manipulation
• Plotly: High-performance Interactive Charting

What This Project Does

• Reads price data for an asset (for example, a stock or crypto pair)
• Calculates RSI for a selected period (commonly 14)
• Generates advice such as Buy, Sell, or Hold
• Prints or logs values so you can monitor momentum over time

Local Development

If you want to run Sift on your own machine or inspect the source code:

1. Prerequisites Ensure you have Python 3.9 or higher installed on your system.

bash
# Clone the repository
git clone [https://github.com/YOUR_USERNAME/Sift-RSI.git](https://github.com/YOUR_USERNAME/Sift-RSI.git)
cd "Sift [RSI]"

# Install dependencies
python3 -m pip install -r requirements.txt

# Launch the app
python3 -m streamlit run rsi_monitor.py

How RSI Is Calculated

RSI measures the speed and size of recent price moves.

Formula

For period N (usually 14):

1. Compute price changes (delta) between consecutive closes
2. Split into:
   1. Gain: positive deltas (else 0)
   2. Loss: absolute value of negative deltas (else 0)
3. Compute averages:
   1. Average Gain
   2. Average Loss
4. Compute relative strength:

RS = Average Gain / Average Loss

5. Compute RSI:

RSI = 100 - (100 / (1 + RS))

Wilder Smoothing (common approach)

After the first average, many RSI implementations use Wilder smoothing:

AvgGain_t = (AvgGain_(t-1) * (N - 1) + Gain_t) / N
AvgLoss_t = (AvgLoss_(t-1) * (N - 1) + Loss_t) / N

This reduces noise compared to using a simple rolling average every time.

What the Advice Means

Typical thresholds:

• RSI >= 70: Overbought zone
• RSI <= 30: Oversold zone
• 30 < RSI < 70: neutral/mid zone

Advice mapping (common default):

• Sell or Take Profit: RSI is high (often >= 70), momentum may be overheated
• Buy or Watch for Entry: RSI is low (often <= 30), price may be stretched down
• Hold: RSI is in the middle range, no strong edge from RSI alone

Important: RSI is not a guarantee. Strong trends can keep RSI overbought/oversold for long periods.

Term Glossary

• RSI (Relative Strength Index): Momentum oscillator from 0 to 100
• Period (N): Number of candles used in the RSI calculation (default 14)
• Delta: Current close minus previous close
• Gain: Positive delta value, otherwise 0
• Loss: Absolute value of negative delta, otherwise 0
• Average Gain/Loss: Smoothed recent gain/loss values
• RS (Relative Strength): Average Gain / Average Loss
• Overbought: RSI high region (often above 70)
• Oversold: RSI low region (often below 30)
• Signal: The generated advice (Buy, Sell, Hold)

Suggested Risk Notes

Use RSI with confirmation:

• Trend direction (higher timeframe)
• Support/resistance levels
• Volume
• Stop-loss and position sizing

Author

Cayden Zhang Freshman @ Georgetown University