Can Matt or Steve weigh in on this? I closed out my SLV.
Now if I trade SLV again and take a loss, it will not
"count" to reduce my income as it will be called a wash sale.
Its really quite shameful the law is like this.
for stock technical trading I hypothesize that when the wilders
RSI 14 daily does a double top about 70, there is a large chance
for at least a near term pullback. Can you find stats to
prove or disprove or assign odds at least
The hypothesis that a double top pattern in the daily RSI
(Relative Strength Index) above 70 often leads to a near-term
pullback has some support in technical analysis literature. Several
sources provide insight into the behavior of RSI in overbought
conditions and its implications for potential pullbacks.
RSI Overbought Conditions: When the RSI exceeds
70, it indicates that an asset is overbought, suggesting that a
pullback may be imminent. Historical data shows that selling
signals triggered when the RSI crosses below 70 after being above
this level often correlate with short-term price declines (
Quantified Strategies) (
TradingSim).
Double Top Pattern in RSI: The double top pattern
in RSI, where the RSI hits above 70 twice before pulling back, is
considered a bearish signal. This pattern indicates that momentum
is weakening, even though the price may be reaching new highs. It
often precedes a price reversal or pullback (
Quantified Strategies) (
Quantified Strategies).
Backtesting Results: Backtesting of RSI-based
strategies generally shows that signals from overbought conditions
(RSI > 70) can be profitable. For example, a study of the
S&P 500 using a range-momentum trading strategy based on RSI
showed that while such strategies do not generate frequent signals,
the ones they do produce are often profitable. This implies that
overbought conditions, particularly with confirming patterns like a
double top, can indeed lead to significant pullbacks (
Quantified Strategies).
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Can Matt or Steve weigh
Posted by steveo on 17th of May 2024 at 06:17 pm
Can Matt or Steve weigh in on this? I closed out my SLV. Now if I trade SLV again and take a loss, it will not "count" to reduce my income as it will be called a wash sale. Its really quite shameful the law is like this.
for stock technical trading I hypothesize that when the wilders RSI 14 daily does a double top about 70, there is a large chance for at least a near term pullback. Can you find stats to prove or disprove or assign odds at least
AI The hypothesis that a double
Posted by steveo on 17th of May 2024 at 06:17 pm
AI
The hypothesis that a double top pattern in the daily RSI (Relative Strength Index) above 70 often leads to a near-term pullback has some support in technical analysis literature. Several sources provide insight into the behavior of RSI in overbought conditions and its implications for potential pullbacks.
RSI Overbought Conditions: When the RSI exceeds 70, it indicates that an asset is overbought, suggesting that a pullback may be imminent. Historical data shows that selling signals triggered when the RSI crosses below 70 after being above this level often correlate with short-term price declines ( Quantified Strategies) ( TradingSim).
Double Top Pattern in RSI: The double top pattern in RSI, where the RSI hits above 70 twice before pulling back, is considered a bearish signal. This pattern indicates that momentum is weakening, even though the price may be reaching new highs. It often precedes a price reversal or pullback ( Quantified Strategies) ( Quantified Strategies).
Backtesting Results: Backtesting of RSI-based strategies generally shows that signals from overbought conditions (RSI > 70) can be profitable. For example, a study of the S&P 500 using a range-momentum trading strategy based on RSI showed that while such strategies do not generate frequent signals, the ones they do produce are often profitable. This implies that overbought conditions, particularly with confirming patterns like a double top, can indeed lead to significant pullbacks ( Quantified Strategies).