the best short term indicator??

Discussion in 'Educational Resources' started by marketsurfer, Sep 2, 2009.

  1. marketsurfer

    marketsurfer Vendor

    http://www.tradingmarkets.com/.site/stocks/commentary/editorial/2-Period-RSI.cfm


    We consider the Relative Strength Index (RSI) to be one of the best indicators available. There are a number of books and articles written about RSI, how to use it, and the value it provides in predicting the short-term direction of stock prices. Unfortunately, few, if any, of these claims are backed up by statistical studies. This is very surprising considering how popular RSI is as an indicator and how many traders rely upon it.

    Click here to learn how to trade using the 2-period RSI! It's all in Larry Connors' new book, Short Term Trading Strategies That Work: A Quanitified Guide to Trading Stocks and ETFs!

    Most traders use the 14-period RSI, but our studies have shown that statistically, there is no edge going out that far. However, when you shorten the timeframe you start seeing some very impressive results. Our research shows that the most robust and consistent results are obtained by using a 2-period RSI and we have built many successful trading systems that incorporate the 2-period RSI.

    Before getting to the actual strategy, here’s a little background on the RSI and how it’s calculated.

    Relative Strength Index

    The Relative Strength

    http://www.tradingmarkets.com/.site/stocks/commentary/editorial/2-Period-RSI.cfm
     
  2. If you like the 2-period RSI, then you'll love the 1-period RSI even more. :D
     
  3. jem

    jem

    But surf says technical analysis does not work.
     
  4. marketsurfer

    marketsurfer Vendor

    i am starting to reconsider.

    further studies have shown that there is an edge in applying some types of TA...

    ideas are going back full circle....at times

    surf
     
  5. Lucrum

    Lucrum

    How come you don't use any of the "successful systems" in your journal?
     
  6. marketsurfer

    marketsurfer Vendor

  7. Bis Ask Delta Cumulative Bars

    Just draw trendlines, horizontal support and resistance and watch for divergences

    But it's useful for VST, not ST
     
  8. Lucrum

    Lucrum

    You reconsidering trends too?
    :)
     
  9. marketsurfer

    marketsurfer Vendor


    :D

    not in the traditional sense, as defined in the trend book.

    surf

    :D
     
  10. jem

    jem

    Full circle to whom?

    Many professional traders never left the profitable side of the circle.
     
    #10     Sep 2, 2009