Wait for RSI to close above 90. Short 1 contract. If price moves against you 2 points, short 2 contracts. If price moves against you another point, close 3 for a loss. If price goes in your favor with 1 contract, close after 2 points. If price goes in your favor with 3 contracts, close 2 at plus 2 points, leave the other one one with a stop at break even and close at end of day.
RSI system
- Thread starter 1a2b3cppp
- Start date
I think RSI sucks to be honest.
RSI is one of the few indicators I use.
It is quite a good tool.
Most just don't know how to use it.
I've had 1 losing month in the past 14 months.
( I trade long/short futures, 10 different markets, RSI works great on all in my opinion, and I don't think I'm fooled by randomness, my returns are too consistent over too long of a time period)
It is quite a good tool.
Most just don't know how to use it.
I've had 1 losing month in the past 14 months.
( I trade long/short futures, 10 different markets, RSI works great on all in my opinion, and I don't think I'm fooled by randomness, my returns are too consistent over too long of a time period)
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Many time the breach of the RSI at those levels you indicated (10, 90) going up/down into it actually indicate a lot of momentum behind the price. So it is best to make entries on its way out of those levels.This will eliminate a lot of the scaling that you do on the entry side.
1a, I hope this is one of the threads you comment in ...instead of the one hit wonders that you do.
ES
1a, I hope this is one of the threads you comment in ...instead of the one hit wonders that you do.
ES
RSI is just previoes Fractal high and low and the percentage of where the market is within, so 100% it's above the prev high, which means break out, which means shorting is ridiculous, it'll only work well ish in ranging markets.
Still just better looking at previous market high and low mind than a RSI!!
Still just better looking at previous market high and low mind than a RSI!!
RSI is just ok indicator way it was built, but thinking outside the box, I had someone build it so below 50 more emphasize is placed on bar lows and above 50 bar highs. Gives different responses. But watching original, movements themselves gives a different indication of price on speed of price, markets that decline or rise too fast shows up as very angled, steep RSI, it is not the number assigned from 0 to 100 of much use for intraday in how I use it, but the pattern of the RSI. Very good on reverse divergences and also on potential reversals based on flatness of indicator from last bar even though close of couple ticks from previous close. Does very good showing CHOP when it hovers on both sides of the 50 by small amounts.
The only times I might even look at low/high numbers is when price is coming up to longer term S/R but am looking for the size of the bars as well, and small breaks/small bars for reversals.
The only times I might even look at low/high numbers is when price is coming up to longer term S/R but am looking for the size of the bars as well, and small breaks/small bars for reversals.