Nice up day for now, the Trend/Pullback went long yesterday
with today's up day the RSI 40 system may go long. Why
would it go long on an up day? This system requires a reversal
strong up today, it doesn't trigger long when the market sells off
on a low, it goes long after a bounce.
yes - in fact the RSI 40 trade condition is now gone with the
pullback intra day - so only way it comes back is if price rallies
here this afternoon, onus is on the 'bulls'
The RSI 40 system - one of the things it looks for is the RSI 14
to test near the 40% area and then reverse higher on a strong up
candle.
a long time ago I noticed the the low 40% area tended to be an
important for support - this is an example of taking something
visual that I see on the charts and applying it to a system
the attached image shows the RSI 14 with a horizontal line at
40%, you can see the last long from that test in September
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SPY and ES mean reversion systems possible new system RSI 40
Posted by matt on 1st of Nov 2024 at 11:36 am
Nice up day for now, the Trend/Pullback went long yesterday
with today's up day the RSI 40 system may go long. Why would it go long on an up day? This system requires a reversal strong up today, it doesn't trigger long when the market sells off on a low, it goes long after a bounce.
if price sells off today the trigger will go away
If today closes weak, will
Posted by laouuu on 1st of Nov 2024 at 01:42 pm
If today closes weak, will this be negated? Thanks
yes - in fact the
Posted by matt on 1st of Nov 2024 at 01:44 pm
yes - in fact the RSI 40 trade condition is now gone with the pullback intra day - so only way it comes back is if price rallies here this afternoon, onus is on the 'bulls'
Thanks!
Posted by laouuu on 1st of Nov 2024 at 01:45 pm
Thanks!
The RSI 40 system -
Posted by matt on 1st of Nov 2024 at 11:39 am
The RSI 40 system - one of the things it looks for is the RSI 14 to test near the 40% area and then reverse higher on a strong up candle.
a long time ago I noticed the the low 40% area tended to be an important for support - this is an example of taking something visual that I see on the charts and applying it to a system
the attached image shows the RSI 14 with a horizontal line at 40%, you can see the last long from that test in September