- Stochastic RSI | Forex Indicators Guide
- Advanced system #3 (Neat entry: RSI + Full Stochastic
- Introduction to Technical Indicators and Oscillators
ok the quesion is
if the price is above 655 SMA = uptrend and RSI Must above 85 & Stochastic lines above 75.. Can we go short
Stochastic RSI | Forex Indicators Guide
The Ichimoku Kinko Hyo technique offers the chance to obtain many different types of operating signals through the use of a single graph. As for all trading techniques, when we are using the Ichimoku Kinko Hyo for our operations, it is always advisable to take into account other elements (volumes, sentiment, seasonality, oscillators, etc ), but certainly the immediate graphic understanding of the trend and its evolution represent the strongest point of the Ichimoku technique.
Advanced system #3 (Neat entry: RSI + Full Stochastic
Larry Connors is an experienced trader and publisher of trading research. Together with Linda Raschke, he wrote the book, Street Smarts , which is a solid collection of trading strategies including the Holy Grail.
Introduction to Technical Indicators and Oscillators
The user may optimise the system through back testing placing the oversold/overbought bands near the recent actual RSI tops and bottoms
According to our trading rules, we are looking for one successful oversold signal to confirm the up trend, before we buy the next oversold signal. What this approach implies is that one good trade is more likely to be followed by another good trade. Statistically speaking, we are depending on the serial correlation of successful signals, a useful concept in trending markets.
Hi Gale, and also, as I delve deeper into understanding this strategy, can you explain perhaps a little more about how you determine the swing high used before the first RSI7 signal? It says: 8775 The RSI dropped below 5. That was our signal to look for the last higher high. We marked it with the dotted line and watched it closely. 8776 A higher high. Can you put more into context how you determine that? On your chart I can see clearly that before the RSI7 signal that high you circled is the highest high on the chart before that. But I 8767 m sure that won 8767 t always be the case, so how far back do you go, and what constitutes a valid higher high versus an invalid higher high? Thanks Gale, enjoying researching this strategy with you.
A weak bullish signal is recorded when at the cutting time between the two Senkou, prices are positioned below the Kumo.
RSI indicator has got another handy feature: Forex traders use RSI to draw trend lines.
While RSI's trend line stays intact, it confirms that a trend holds well.
Wilder s formula normalizes RS and turns it into an oscillator that fluctuates between zero and 655. In fact, a plot of RS looks exactly the same as a plot of RSI. The normalization step makes it easier to identify extremes because RSI is range bound. RSI is 5 when the Average Gain equals zero. Assuming a 69-period RSI, a zero RSI value means prices moved lower all 69 periods. There were no gains to measure. RSI is 655 when the Average Loss equals zero. This means prices moved higher all 69 periods. There were no losses to measure.
In order to enter at the right moment (on the true market reversal) Forex traders should wait for RSI to leave its overbought/oversold area. For example, when RSI goes above 75, Forex traders would prepare to Sell, but the actual trade will take place only when RSI crosses down below 75.
Opposite true for an oversold RSI: once RSI goes below 85, traders wait for the indicator to come out of an oversold area and rise above 85 before placing a Buy order.