Stocks & Commodities Magazine Traders Tips – January 2011 “Combining RSI with RSI” by Peter Konner
You would like to be long in a market that’s trending up, but what about when the trend turns down? Do you exit and just watch from the sidelines, or do you try to trade on the corrections in the downtrend? Here’s a simple combination where you can trade long-term uptrends and short-term corrections, all in one chart.
One of my previous strategies didn’t allow me to enter a trade and stay there in a long and strong uptrend, since the strategy was designed to use the relative strength index (Rsi) on a daily basis. The total return from my Rsi strategy was fair, but there were many trades with little return, especially in volatile markets.
I decided to build a new strategy with these requirements……read more at http://www.traders.com/Documentation/FEEDbk_Docs/2011/01/Konner.html
Rich Denning has coded this indicator for AIQ EDS, you can pick up the code from Rich’s website at http://www.tradersedgesystems.com/aiq/traderstips/traders-tips-january-2011.htm
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