2-Period RSI
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     brand
Member
Username: brand
Post Number: 29
Registered: 09-2005Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 02:07 am: |  
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Any thoughts on this:http://www.tradingmarkets.com/.site/stocks/commentary/editorial/2-Period-RSI.cfm
I CAN RESIST ANYTHING BUT TEMPTATION.
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ohkoolnutz
Member
Username: ohkoolnutz
Post Number: 448
Registered: 10-2005
Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 08:15 am: |
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The two examples they graphed are best case scenarios. Five days of higher lows or lower highs force a strong reversal.
The shorter the time frame the more difficult it may become to get the price you want. An advantage of 0.25% looks good done by a computer program but can you rely on a human's perfect execution to achieve this result?
---
ohk
Lies, Damn Lies and Technical Analysis
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chriso
Member
Username: chriso
Post Number: 65
Registered: 04-2004Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 07:06 pm: |
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I believe that the 2 day RSI could be useful for a day trader with other tools of the trade.
On it's own looking for a 0.25% weekly average return minus brokerage sound like one big bank balance.
Like ohkoolnuts said that return is gained by picking the very bottom, not much room to get it wrong.
It's a case of the shorter your time frame the shorter the indicator time or we would see results longer than a week.
Chris
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chriso
Member
Username: chriso
Post Number: 66
Registered: 04-2004Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 07:18 pm: |
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I believe that the 2 day RSI could be useful for a day trader with other tools of the trade.
On it's own looking for a 0.25% weekly average return minus brokerage sound like one big bank balance.
Like ohkoolnutz said that return is gained by picking the very bottom, not much room to get it wrong.
It's a case of the shorter your time frame the shorter the indicator time or we would see results longer than a week.
Chris
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chriso
Member
Username: chriso
Post Number: 67
Registered: 04-2004Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 07:21 pm: |
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Sorry for posting twice  , i walked away from the computer.
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lafee
Member
Username: lafee
Post Number: 273
Registered: 04-2003
Rating: N/A
Votes: 0
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| | Thursday, January 18, 2007 - 07:30 pm: |
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I think there is a system by Linda Bradford Rashche ( i might have spelt that wrong) that uses a 2 period RSI of a 1 period ROC. The idea is to use it as an overbought/oversold indicator for swing trading on a daily chart. Above 80 = overbought and below 20 = oversold.
I've played around with it by itself and with various additional filters but have yet to find any meaningful results in backtesting.
I liked the look of the system using an 8hour chart on the forex but as I do not have more than a couple of months of intraday data I couldn't be sure if the results were just random.
Cheers
Lafee
If nobody can be certain of anything, how can I be certain of that?
Ayn Rand
When I was young people called me a gambler. As the scale of my operations increased, I became known as a speculator. Now I am called a banker. But I have been doing the same thing all the time.
Ernest Cassel
"My major hobby is teasing people who take themselves & the quality of their knowledge too seriously & those who don’t have the guts to sometimes say: I don’t know...." (You may not be able to change the world but can at least get some entertainment & make a living out of the epistemic arrogance of the human race).
Nassim Nicholas Taleb
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