Since on a daily chart EMA26 approximate in an excellent way the 50-line of the RSI (when close crosses under EMA26 the RSI crosses under 50) and EMA130 approximate in the same way the 50-line of the weekly data on the daily chart, I created this indicator that so far gave me really good profits per trade.
It’s sort of a daily RSI of a weekly RSI and uses a cut-off line based on standard deviations to stop the position. I traded with it only long and only on stock market.
I enter long when the indicator crosses into the positive area (I normally use a number between 0.3 and 0.9) and I sell when the indicator crosses under the cut line (I use normally 1.5 to 1.9 of correction for the standard deviation)
Blue skies
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//computation of moving averages and standard deviation //corr=2 a=exponentialaverage[130](close) b=exponentialaverage[26](a) diff=100*(a-b)/b st=std[22](diff) //computation of reference line (cut) if barindex>26 then basso=diff-corr*st alto=diff+corr*st once cut=basso if diff crosses under cut then cut=alto endif if diff crosses over cut then cut=basso endif if diff>cut then if basso>cut then cut=basso endif endif if diff<cut then if alto<cut then cut=alto endif endif if diff>cut then r=0 else r=205 endif endif //return of data return diff,0, cut coloured (r,0,0) |
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Hi Gabri, thanks for sharing, looks interesting and with potential as a basis for an Auto-strategy. Do you manual trade it or Auto-Trade?
Link below shows what I get (I added more colours), not same as you show above … any comment / thoughts please?
Thank YouGraHal
GraHaL,
I cannot see any link attached. I mostly manual trade but for stocks with strong financials I used automatic trading with this setup as well. I had great results.
G
Yes sorry, I set up a link to a screen shot on my google drive and then I got locked into that weird thing where I kept getting shot down to the ‘bottom of the page’ and couldn’t get back to my post. I kept hitting return, space bar and all sorts in the end in frustration! I don’t want to bother Nicolas with it as he is so busy and he knows about this issue anyway … but he will read this sometime! 😉
Anyway ……. here is an ’embedded screen shot’ instead of a link … mmm can’t even do that now, this is so frustrating! Only way seems to be if you raise a Forum Thread??
Here’s the thread
https://www.prorealcode.com/topic/multiframe-rsi-of-rsi/
Bonjour Nicolas,
Pourriez-vous m’indiquer si cet indicateur fonctionne avec la V11 ? Le diff s’affiche seul dans un graph séparé avec ses deux lignes d’écart-type et c’est tout.
L’indicateur change d’ailleurs de nom au téléchargement : “mio – ema26 di ema26” et l’illustration en exemple est impossible à réaliser.
Je vous en remercie d’avance.