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ssukhani:
Greetings. Those are the 2 best books available on RSI.
Was Cardwell's tapes worth the price?
Although he's the rsi 'guru', I heard thru the grapevine that he's not a
real good trader. Could you imagine what they would cost if he had a $1.1M
trading year? ha-ha
Anyway, a 40ema is the same as a 21 rsi above and below 50.
It will be allot more complex than just a rsi computation imo.
Hope that helps, still learning myself.
Thanks,
Phil
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From: ssukhani@xxxxxxxx
Date: Thu, 07 Oct 2004 07:26:18 +0500
One of the major uses of the RSI is to identify the trend.
{references:
Andrew cardwell: audio tapes
C Brown: Book: T A for the trading professional
Hayden: Book: The RSI Book
}
I use the indicator (set to 14 bars) to decide if I should be a buyer,
seller, or a sideways trend watcher.
The concept is: 40 is a support in bull markets. A move above 60 signifies
strength. (For bear markets this becomes 60 as resistance, and move below 40
as weakness)
The problem is, while the method is simple enough to apply visually, it is
not easy to program it. This would qualify as an uptrend:
The RSI had moved above 60 in the last few bars. (strength) It is currently
at 51. The last dip saw it reach 41, thus holding above the 40 support.
(support)
I am unable to code this as a mechanical alert / indicator.
Any suggestions ?
Thanks.
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