Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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This demonstrates how you might filter your signals using RSI, but the same technique could be applied to Stochastic RSI and any other oscillator that has overbought and oversold conditions.
Use it as a visual indicator to determine when to enter a trade:
Red = Chop zone (no trade) Bright red = Tight chop (dear god stay away) Green = Overbought or oversold (signals permitted) Bright green = Crossing up/down (take the trade)
To apply the filter, simply add 'and not chop' after your conditions as seen in the commented out example.
Thanks for indicator firstly but I am trying to understand, is the green where rsi is >70 & <30?
colinmck
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@Uni_ve12se, You're welcome! And that's right - areas of overbought and oversold, indicating an incoming trade. Light green is the price crossing both of those values.
user1928374560XYZ
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@colinmck, Awesome! I've got it figured out now, thanks again
Thank you so much, if works great for my trading style
CynicalBear
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Hi Colin, could you please make a version of this using the ADX (Average Directional Index)? e.g. If ADX > 30 then trend = not choppy. Might be even better than RSI. Thanks!
binahtrading
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Cheers m8t !!!
Tick_Ebb_Flow
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Thanks Colin...great work! Those red squares should keep me from overtrading. ....And I'm also definitely intrigued about how your 5 Minute Trader chart might work with what I'm doing, if I could have access...
ChartingCycles
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Useful and easy to read - just how I like my indicators. Thanks!