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After a hard night out, when physical activity is definitely out of
consideration, and my brain is incapable of producing one original
thought, I like to trawl thru back posts and mess with posted formulas
to see what I can create.
Our onetime Poet Laureate of Parameters, DIMITRIS TSOKAKIS, in post #
25790, shared an RSI formula for Intermediate & Final exits.
I converted it to a momentum indicator (that's my thing).
The red line tracks the Medium Term trend and the black line tracks the
Short Term trend. Rather well I think.
Anyway the deal is;
When the red line is above 50 the MT trend is positive. Below 50 and
it's negative.
When the black line is above 50 the ST trend is positive. Below 50 and
it's negative.
Long Entry Setup - The red MT line is above 50 (the more the better) and
the black ST line dips below 50 then reverses back up.
Short Entry Setup - Vice Versa
Forget for the moment all that guff about Overbought/Oversold levels.
They only ensure you miss many great trades in a STRONGLY trending
market. Plot them here and I'll kick your backside from here til
Christmas. Do I make myself clear?
Regds
Gerard
// Trading with the DT's
// Created using Dimitris Tsokakis's formula from post 25790
// Short term Trend
N1=3;
F1=(RSI(N1)+RSI(2*N1)+RSI(3*N1/2)+RSI(4*N1/2)+RSI(5*N1/2))/5;
Plot(TEMA(F1,5),"Trading with the DT's Short term",1,8);
// Medium term Trend
N1=12;
F1=(RSI(N1)+RSI(2*N1)+RSI(3*N1/2)+RSI(4*N1/2)+RSI(5*N1/2))/5;
Plot(TEMA(F1,5)," Medium term",4,8);
Plot(50,"",4);
--
Gerard Carey
gerardncarey at fastmail dot fm
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