Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
⋅
RSI is a momentum indicator, however most people seem to be using it to go against the momentum by trying to identify tops/bottoms using it. Its in my opinion the wrong way to be using it. It can be easily used for trend following which seems like a better use for it.
Uptrend - RSI > 60 Downtrend - RSI < 40 Sideways - RSI between 40 and 60
If however not interested in filtering for sideways trends and convert it to a long-short only strategy that stays in market all the time then it can be simply modified by setting both overbought/oversold thresholds to 50. In such a case uptrend will be above 50 and downtrend will be less than 50.
Note: wait for close for current bar to be confirmed as RSI is calculated at close
just found this it looks good ,, i'm trying to do more trend trading instead of multiple quicker trades a day seems like it would be less stress ...
but anyway i just put your indicator on my chart (i was just randomly on the 4hr chart and have not checked the other time frames for this yet),,, so on the 4hr chart if you look closely on big moves you will see the color switch sooner than kinda the smaller moves ,, so what i mean by this is if price is about to have a bip pump the rsi line will turn green near the 40 line going upwards and vice versa in a big dump the rsi line will turn red just past the 60 line going down .... just curious if you noticed this @zzzcrypto123 ??
CryptoGod88
⋅
@CryptoGod88, edit: everything i talked about above is with using the heikin ashi candles
zzzcrypto123
⋅
@CryptoGod88, hi, this uses normal candles instead of heikin ashi so you are likely not seeing where price actually is. also its not a good idea to use heikin ashi because it shows the candles in a different place from where the price actually is. tradingview.com/support/solutions/43000481029/
CryptoGod88
⋅
@zzzcrypto123, ok yea i read it thanks buddy , will def look into it more .... can i ask for your indicator what exactly about the price action causes the red and green coloring to trigger and why it stays and then why it goes back to a regular line???
zzzcrypto123
⋅
@CryptoGod88, its just a RSI(relative strength index). google it to know how that works.
millersir
⋅
Found this last night. Backtested and used it in crypto. Using the 2m chart, this strategy has been 4 for 4. Thank you!
OneDollarMan
⋅
Hi @ZzzCrypto Very nice observation i'm trying di write a strategy based on RSI can i use your script? Thx for sharing :)
zzzcrypto123
⋅
@SerdarErbasli, sure
SJWLC
⋅
Thank you zzzcrypto123
Excellent work and it works perfect together with On Balance Volume and Donchian Channel/ Regards Sören
zzzcrypto123
⋅
@SJWLC, thanks, can either use it alone or combine it however with any other indicator if wish
but anyway i just put your indicator on my chart (i was just randomly on the 4hr chart and have not checked the other time frames for this yet),,, so on the 4hr chart if you look closely on big moves you will see the color switch sooner than kinda the smaller moves ,, so what i mean by this is if price is about to have a bip pump the rsi line will turn green near the 40 line going upwards and vice versa in a big dump the rsi line will turn red just past the 60 line going down .... just curious if you noticed this @zzzcrypto123 ??