Please, use the software on your own responsibility. All the software pieces are coded in accordance with some common known trading concepts and Nordman Algorithms does not guarantee accuracy or performance of the software entry setups. Subscribe to our news. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
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As a result, the profitability of the strategy has increased from Reducing the drawdown has allowed us to increase the leverage that can be used while trading this strategy up to , which in turn, has resulted in annualized ROI increase up to Reducing the drawdown has also allowed us to use risk based lot calculation.
If you have a trading strategy that you want to analyse, optimize and increase its profitability or even turn it from losing into a profitable Forex trading strategy — feel free to contact us! Our trading data analysis team will respond to you within 24 hours clarifying all the details needed. One Subscription For All Indicators. View All Products. Learn more. MT4 Divergence Indicator is used to identify a common known trading concept divergence across different currencies, timeframes and indicators.
Traders should look for buying opportunities when 2-period RSI moves below 10, which is considered deeply oversold. Conversely, traders can look for short-selling opportunities when 2-period RSI moves above This is a rather aggressive short-term strategy designed to participate in an ongoing trend. It is not designed to identify major tops or bottoms. Before looking at the details, note that this article is designed to educate chartists on possible strategies. We are not presenting a standalone trading strategy that can be used right out of the box.
- Description?
- What is the Divergence?
- what happens to stock options when a stock splits?
- II. Sensitivity Test.
Instead, this article is meant to enhance strategy development and refinement. There are four steps to this strategy. First, identify the major trend using a long-term moving average; Connors recommends the day moving average. Traders should look for buying opportunities when above the day SMA and short-selling opportunities when below the day SMA. Second, choose an RSI level to identify buying or selling opportunities within the bigger trend. Connors tested RSI levels between 0 and 10 for buying and between 90 and for selling. Note that levels are based on closing prices. He found that returns were higher when buying on an RSI dip below 5 than on one below In other words, the lower RSI dipped, the higher the returns on subsequent long positions.
For short positions, the returns were higher when selling short on an RSI surge above 95 than on a surge above In other words, the more short-term overbought the security, the greater the subsequent returns on a short position. The third step involves the actual buy or sell-short order and the timing of its placement. Chartists watching the market can establish a position either just before the close or on the subsequent open. There are pros and cons to both approaches.
Connors advocates the before-the-close approach. However, buying just before the close means traders are at the mercy of the next open, which could be with a gap. Obviously, this gap can enhance the new position or immediately detract with an adverse price move. I like this strategy just what I have been looking for thanks very much for your hard work.
How to read RSI indicator
Best Regards Graham. RSI is a simple indicator. With your trading strategy, it will be good to develop the system rather than manually plotting and looking at the conditions. I think you have a great informative site, so keep up the good work but the proof is always in the pudding. Ok - I jumped in and bought the indicator - it looks just like the example below. My only disappointment is the candles don't "stay" so if you leave and want to check back later the trade disappears once TP target is hit. Also the TP line is not always visible on the chart while the trade is in progress Best to keep the non-strategy candles and chart features as monochromatic i.
Really looking forward to getting this indicator. Just one question relating to last 50 candles, I presume it is last 50 or more candles and not necessarily exactly 50 candles back? Very grateful for all the great training! I look forward to trying it. Their new policies on refunders mean that many of us in fact almost all of us in my Skype Group have been blacklisted for refunding scamster indies and EA's.
I don't run it. It's called YTR ex "Your Trading Room" and Vertue Traders both were scam defunctionary - the principals evaporated and the trainee prop traders were left in the lurch - having paid many thousands. Australian regulator ASIC is totally toothless and disinterested in retail trader scams.
How to Use RSI for Day Trading?
Oh yes I remember that group. Terrible to see that happen, hopefully some of the traders were able to continue and find success in your trading. This is just the strategy of trading that I recently stumbled upon as I examined several chart formation and changes in trend both short term and long term. Your indicator will serve a great purpose of automatically finding those spots of change and making trading a delight that it should be!
Just me but like lot of comments, I've been through the indicator jungle. Settled on a few custom ones via ThinkorSwim.
4 Simple Relative Strength Index (RSI) Trading Strategies
What I like about this EFC indicator is it seems to incorporate candle coloration of a temperature kind. Follows a logic hot to lukewarm to cool.
In heat of the day it can't easy to get twisted around when money on the line so a 'fast glance' 4 color system really helps. Should go well with the many strategies you've offered. I'd like to see you backtest using a smaller stop loss rather than the obvious one. I am much more interested in lower drawdown rather than a high winning percentage. I prefer to trade daily and 4 hour charts. How well does your indicator perform on these historically?
Looking forward to reviewing your new to be released indicator. You have a good track record of putting out good easy to understand strategies that are profitable. The bar is set high!
Relative Strength Index (RSI) Indicator for Day Trading: How to
Love the strategies you guys post this 80,20 strategy is very simple to apply and wit a little patience to wait for the rules to be met i can see this strategy can be very profitable. Thanks guys for taking time to trace. This looks really good. Just what a newbie needs to improve understanding and results, Thank you for your efforts.
Married to a sane breakeven philosophy, it would restore the below average retail trader's faith in ultimately getting to the positive side of the ledger Divergence with RSI alone seems like something that I can do with Maybe this keep it simple method is the ONE we've been waiting for.