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Your rules need to be more defined to allow programming. For example, is a
long entry defined by the RSI going above 60, then dipping into the 40-50
range, then moving up above 50 again? As long as the rules are clear, it
can be programmed. Let me know, this is a concept I've programmed before.
Joe
-----Original Message-----
From: ssukhani@xxxxxxxx [mailto:ssukhani@xxxxxxxx]
Sent: Wednesday, October 06, 2004 10:26 PM
To: omega-list@xxxxxxxxxx
Subject: Coding an RSI move
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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