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RSI-2 system Strategy
Source: https://fxcodebase.com/code/viewtopic.php?f=31&t=67012
Forum: 31 · Topic 67012 · 1 post(s)
RSI-2 system Strategy
Apprentice · Tue Nov 27, 2018 6:31 am
Based on post. https://stockcharts.com/school/doku.php … egies:rsi2
Traders should look for buying opportunities when above the 200-day SMA and short-selling opportunities when below the 200-day SMA.
Connors found that returns were higher when buying on an RSI dip below 5 than on an RSI dip below 10.
For short positions, the returns were higher when selling-short on an RSI surge above 95 than on a surge above 90.
Waiting for the open gives traders more flexibility and can improve the entry level.
Exiting long positions on a move above the 5-day SMA and short positions on a move below the 5-day SMA.