holygrail
72 posts
msg #29105
- Ignore holygrail |
10/6/2003 3:59:44 PM
you use an rsi(2) for any time frame because the rsi(2) is the most powerful leading indicator there is you have to have live intraday charts that give you tabuler results for intraday and daily readings maninly what you need is esignal with my setup okay pos divergence is where the rsi going down then reverses up with the stock price we will use neom as a great example i will give you the rsi(2) for the closes on neom plus the close price 1. date 2. close 3. rsi(2) 9-26 0.17 8% 9-29 0.14 3.5% 9-30 0.13 2.6% 10-1 0.12 1.7% 10-2 0.13 42% 10-3 0.14 72% 10-6 88% a pos divergence on the rsi(2) is when you get the following price going down while rsi going up or price even while rsi going up(and the opposite is true at top moves for neg divergences and by the way neom at 0.44 had a 100% rsi(2) a sell) okay you will notice at 0.13 going down rsi was 2.6% on 9-30 but going back up on 10-2 it was 42% so 42-2.6= a + 39% pos div at 0.14 going down on 9-29 it was 3.5% and on 10-3 going up it was 72% a + 68% and on 9-26 it was 8% at 0.17 and at 0.16 today its at 88% a +80% divergence this is as good as iot gets usually anything over 50%is big big
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JoeGrossinger
165 posts
msg #29106
- Ignore JoeGrossinger |
10/6/2003 4:15:06 PM
Well, that makes absolutely no sense.
When the price goes up RSI(2) or any number will also go up.
That is not a divergence.
A genuine divergence is when RSI(X) goes up say, and the price goes down. That usually happens with MACD or the longer RSI such as RSI(15)
RSI(2) is pretty much a lousy indicator because it can totally reverse in one day. That means all of the action can be over and done with during the first 5 minutes of market time.
That is why RSI(2) is such a lousy performer when traded in real life.
When you eliminate the 1 penny and 2 penny stocks the filter becomes less than average.
If I wanted to play a penny stock I could just as well buy a penny and put in a sell order for 2 pennies. They bounced up and down often enough where a guy could do that IF it actually worked that way, but it never does.
I have been paper trading the RSI(2) filter for some time now and find that it's pretty useless.
The spread is generally dismal, as you know and have just attempted to fix with the variable AE.
I can do just as well with NO indicator and just using this simple filter:
Stock
No fuss, no muss, no magic and guess what?
NO RSI(2)
I kept the date offset so folks can immediately see the result.
No magic, just a dead cat bounce play.
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TheRumpledOne
6,411 posts
msg #29164
- Ignore TheRumpledOne |
10/8/2003 2:38:05 AM
Joe G.
You are so against RSI(2) so just don't use it.
Meanwhile, Holygrail, myself and a bunch of others are raking in the $$$ using RSI(2).
So post some real confirmations instead of paper trades.
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JoeGrossinger
165 posts
msg #29170
- Ignore JoeGrossinger |
10/8/2003 5:04:15 AM
Click on my "No RSI(2) Filter" Heheheh.
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