- 2Period RSI Trading Indicator for ThinkorSwim
- Verge Trading Strategy – Amazing 2-Period RSI Day Trading
- How to build profitable trading - System Trader Success
Did you know the RSI can display the actual support and resistance levels in the market ? These support and resistance lines can come in the form of horizontal zones or as we will illustrate shortly, sloping trendlines.
2Period RSI Trading Indicator for ThinkorSwim
The RSI is much more than a buy and sell signal indicator. The RSI can provide you with the ability to gauge the primary direction of the trend.
Verge Trading Strategy – Amazing 2-Period RSI Day Trading
In the above chart example, the RSI shifted from a weak position to over . From this point, the RSI stayed above the level for days and would have kept you long in the market for the entire run.
How to build profitable trading - System Trader Success
Fortunately, these attempts are unsuccessful, and we stay with our long trade. Later the RVI finally has a bearish cross, and we close our trade. This long position with FB accumulated $ per share for 9 hours.
In the second test, Connors comes up with a strategy which uses a cumulative RSI. This strategy is tested on the SPY ETF and has the following rules:
Thanks Jeff. I recall Howard Bandy had a way for calculating RSI with AmiBroker before the close. Or to come up with a target closing price that would be the minimum it could be to meet the RSI threshold. So it *is* possible the results just become slightly fuzzier as a result. Thanks for your follow up.
This is an oldie but goodie and is still applicable to the RSI indicator. Building upon the example from the last section, identify times where price is making new highs, but the RSI is unable to top itself.
This is a clear example of how we can attain an extra signal from the RSI by using divergence as an exit signal. This long position with MCD made us a profit of $ per share.
I tested the 7-period systems on the $ index which is not a tradable instrument. I did this to get as much backtest history as possible. But how would my modified 7-period RSI system hold up on real ETF and futures markets?
After two periods, the RVI lines also have a bullish cross, which is our second signal and we take a long position in Facebook. Just an hour later, the price starts to trend upwards. Notice that during the price increase, the RVI lines attempt a bearish crossover, which is represented with the two blue dots.