with a separate trend indicator, and let the 2-period RSI clue us in on the trend. Waiting for the open gives traders more flexibility and can improve the entry level. When RSI 14 is above 70, the security is said to be overbought and this is meant to be a good time to sell. Below is a table showing the difference between the original Connors rules and the modified Connors rules.
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Yes, you read right. Of the four bullish signals, DIA moved higher three of the four times, which means these signals could have been profitable. Similarly, traders could exit shorts when conditions become oversold. In fact, I found that doing the exact opposite (buying overbought stocks and selling oversold stocks) results in higher returns as it allows the capture of longer term upward trends. As a reminder, the rules are as follows: Price must be above its 200-day moving average. We will make the following changes: Use a value of 10 as the RSI threshold. You may also like: RSI In Stocks: Can You Beat The Market? Traders should look for buying opportunities when above the 200-day SMA and short-selling opportunities when below the 200-day SMA. However, although these results do look good on paper its also important to be aware of some additional considerations. Larry Connors cong dong forex vietnam game.vtc.vn and Cesar Alvarez.
In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator. Days After Opening A Trade, first lets take a look at how the market behaves after a RSI setup occurs.