- Relative Volatility Index (RVI) - 2 Simple Trading Strategies
- MTF Indicators for the 'Trading Made Simple' system
- Connors RSI s an excellent way to measure price momentum.
Lastly, we will use simple price action techniques to take profits (chart patterns, candle patterns, support and resistance, trends, etc.). We can also exit the trade based on a contrary signal from the RVI indicator or from the Fibonacci levels.
Relative Volatility Index (RVI) - 2 Simple Trading Strategies
When the closing price of a security is lower today than it was yesterday, we say that it has “closed down”. If yesterday’s closing price was lower than the previous day’s close, then we have a “streak” of two down close days. Our research has shown that the longer the duration of a down streak, the more the stock price is likely to bounce when it reverts to the mean. Likewise, longer duration up streaks result in larger moves down when the stock mean reverts. In effect, the streak duration is another type of overbought/oversold indicator.
MTF Indicators for the 'Trading Made Simple' system
The final component of ConnorsRSI looks at the size of today’s price change in relation to previous price changes. We do this by using a Percent Rank calculation, which may also be referred to as a ”percentile”. Basically, the Percent Rank value tells us the percentage of values in the look]back period that are less than the current value.
Connors RSI s an excellent way to measure price momentum.
Do you have any suggestions or questions regarding this indicator? You can always discuss Traders Dynamic Index with other traders and MQL programmers on the indicators forums.
The result is a very robust indicator that is more effective than any of the three components used individually. In fact, ConnorsRSI also offers some advantages over using all three components together.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 655. Traditionally the RSI is considered overbought when above 75 and oversold when below 85. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
Of course, there is no guarantee, but it is possible to say that it is effective. One of the most preferred or used technical terms in the Forex market is RSI. Well, what? How to use? In short terms, the RSI indicates a technical indicator.
In the indicator line, overbought and sell segments have been identified, and when approached, a signal understanding on the basis of transaction is valid. In general, it is seen that the appropriate level is 75 to perform the sales transactions and the appropriate level is 75 to perform the purchase transactions. Accordingly, no action has been developed. In technical analysis, it is stated that the level determined as 75 is the overbought limit, the level set as 75 is determined or accepted as the over-sell limit.
First, the ADX crosses above 95, which gives us an indication that a strong trend is emerging. However, we don’t know the trend direction, because the price is moving upwards and the RVI is around 75, so we wait patiently.