Why RSI May Be One of the Best Short-Term Indicators


Sudden large price movements can create false buy or sell signals in the RSI. Interesting result for the stocks. The results are shown below:. For short positions, the returns were higher when selling-short on an RSI surge above 95 than on a surge above The average returns of stocks with a 2-period RSI reading below 2 were much greater than those stocks with a 2-period RSI reading below 5, etc.

II. Sensitivity Test


Aucune immobilisation du capital. Register Login connect with Facebook. So in this case you are already late. Nicolas 2 weeks ago. Vonasi 2 weeks ago. Floating Mean Reversal Equity Indicator equity curve mean reversal mean reversion simulated trades. Louis Winthorp III 3 weeks ago. This indicator has helped me a lot, has tried to get the RSI 30 extracted in the g For traders using the RSI in their setup, with this Then you can set any value Lily Rios Gracias por el indicador, tengo una pregunta necesito programar un screener de valores que e Horance 4 weeks ago.

Horance 1 month ago. Nicolas 1 month ago. Bard Great job and thanks very much for posting this nicolas. I've backtested both these RSI a Nicolas So you want to bound this oscillator with a scale made of std devs but of price? Barrabas15 2 months ago. ALE 3 months ago. Nicolas 3 months ago. Could re-upload your PDF please?

Your Dropbox link doesn't work. ChrisMoody I've gone through a number of strategies here on TV and find all strategies interesting on the approach. After reading comments, it is sad on the number of traders that ask for your specific system.

These traders are the largest majority of people who lose money in the markets and will never make it as a trader unless they change their approach to trading. These same people 'want' to learn without putting in the demo time, reading books, watching videos, etc. In other words we looked at all stocks with a 2-period RSI reading above 90, 95, 98 and 99, which we consider overbought; and all stocks with a 2-period RSI reading below 10, 5, 2 and 1, which we consider oversold.

When looking at these results, it is important to understand that the performance improved dramatically each step of the way. The average returns of stocks with a 2-period RSI reading below 2 were much greater than those stocks with a 2-period RSI reading below 5, etc.

This means traders should look to build strategies around stocks with a 2-period RSI reading below The average returns of stocks with a 2-period RSI reading above 90 underperformed the benchmark 2-days 0. The average returns of stocks with a 2-period RSI reading above 95 underperformed the benchmark and were negative 2-days later The average returns of stocks with a 2-period RSI reading above 98 were negative 1-day The average returns of stocks with a 2-period RSI reading above 99 were negative 1-day When looking at these results, it is important to understand that the performance deteriorated dramatically each step of the way.

The average returns of stocks with a 2-period RSI reading above 98 were significantly lower than those stocks with a 2-period RSI reading above 95, etc.

This means stocks with a 2-period RSI reading above 90 should be avoided. Aggressive traders may look to build short selling strategies around these stocks.