RSI(2) Strategy Triggering: QID Buy On Open
Wednesday, May 14, 2008 at 4:13 pm
Today, the QID RSI(2) was below 5. After the afternoon reversal in the Qs, the RSI(2) closed well above 10, likely near 30. However, the strategy still triggers a buy on the open of the (QID: 17.40 0.00%).
I was also watching the double short S&P (SDS: 32.16 0.00%) and I swear the RSI(2) was reading around 8, late morning. Thus, it too has signaled a buy on the open. Strangely enough, Stockcharts now does not show that the RSI(2) dipped below 10. For this reason I’m not comfortable saying that the trade has triggered.
Full Disclosure: I bought 100 QID and 100 SDS just before the close.
The SPX is in worse technical shape than the NDX. It looks to have eyes for 1365-1370 near term, which would send the SDS to 60ish.
Wood
Prophet.net has an indicator RSIx that allows you to pick High, Low, or Closing price. Standard Wilder RSI uses closing price.
Example is at
img178.imageshack.us/my.php?image=capturecz6.jpg
Crazycolo- thanks! I was not aware of that feature on prophet.