This is the same RSI strategy as the previous post. However, I tested the strategy on Microsoft, starting from the beginning of this year. What's important to realize is how even using such a simple and common technical indicator such as RSI can allow for immense profit and return.
This RSI strategy tested on Microsoft has a 85% net profit when run from the beginning of this year. This is after Microsoft's stock fell roughly 27% due to the COVID-19 outbreak.
If you want to know more about this strategy please comment below, I would love to talk more about it.
I put a 50 EMA on the RSI Indicator, along with the RSI strategy. The RSI Strategy shows a signal and when the RSI Indicator crossed the EMA...Booya! I've noticed that the RSI will dip and get an alert via the strategy on the price chart, but the RSI indicator / EMA (lagging indicators) will show confirmation afterwards with the cross and I'm in. #AMD has been a great stock for this as well. Those volatile stocks with high beta's (1-1.5ish).
If you know of any other stocks that react to the RSI like this please share. Stocks are great to play on the RSI short or long term.
codespeedtrades
⋅
Can you explain
AHiray
⋅
@codespeed, This is based on RSI (Relative Stock Index). The way this strategy works is that by analyzing whether the stock is being overbought or over sold, it determines whether to sell or buy, as well as what quantity to sell/buy. This is a very simple strategy but has a lot of potential.
ronskalit
⋅
@hirayarnav, Can you add a time frame on the RSI report?
AHiray
⋅
@ronskalit So i can not change the chart, however, the chart shown starts from December 15th 2019 and ends on April 10 2020.
codespeedtrades
⋅
@hirayarnav, how can we use this information for a trade
Ken_Tabor
⋅
@codespeed, The RSI Strategy is an indicator you can add on your chart. (There's the RSI indicator AND the RSI strategy that's applied to the price chart) When it's below 30 you buy, when it's above 70 you sell. The RSI strategy on the price chart will show a signal up or down. Obviously use other indicators for confirmation.
I was a little confused with how strategies worked on here as well. But I find they apply the same across platforms as well too. I'm using this on TOS as well.
AHiray
⋅
@codespeed This is an algorithm which decides when to trade.... I’m not sure I understand your question.
If you know of any other stocks that react to the RSI like this please share. Stocks are great to play on the RSI short or long term.