Hello,
I am working on what could be a profitable trading system. I have a couple of issues however with the RSI recalculating. Perhaps there is a way to improve this system so that the signals are more reliable.
Chart set up:
RSI 8
Moving Average on the RSI (first indicator's data) of 21 LWMA Shift 13
Trading Rules:
Long trade: When the RSI passes over the 21 LWMA and is above 50 level
Short trade: When the RSI passes under the 21 LWMA and below 50 level
Exit long: When RSI passes under the 21 LWMA
Exit Short: When the RSI passes over the 21 LWMA
I use a 90 LWMA to determine the trend and it would seem best to use it on the H4 time frame.
The problem however is, that the RSI might change from passing over/under a few bars later. I am wondering if there is a solution to this problem and if so, this might be able to produce good trades.
Here is an example of what I am talking about:
https://ibb.co/jO18Re
Also, I uploaded a template.
I am working on what could be a profitable trading system. I have a couple of issues however with the RSI recalculating. Perhaps there is a way to improve this system so that the signals are more reliable.
Chart set up:
RSI 8
Moving Average on the RSI (first indicator's data) of 21 LWMA Shift 13
Trading Rules:
Long trade: When the RSI passes over the 21 LWMA and is above 50 level
Short trade: When the RSI passes under the 21 LWMA and below 50 level
Exit long: When RSI passes under the 21 LWMA
Exit Short: When the RSI passes over the 21 LWMA
I use a 90 LWMA to determine the trend and it would seem best to use it on the H4 time frame.
The problem however is, that the RSI might change from passing over/under a few bars later. I am wondering if there is a solution to this problem and if so, this might be able to produce good trades.
Here is an example of what I am talking about:
https://ibb.co/jO18Re
Also, I uploaded a template.
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