The Linear regression and RSI (2)

[ny10013]

The RSI (2) can be a helpful tool in trading, you can read more on it at.... http://biz.yahoo.com/tm/070110/15309.html

One method I stumbled on in the web and I'm using it to trade is as below. Remember nothing is certain in all the tech analysis methods, were just trying to improve our odds

The setup
Tools:  Go to http://www.prophet.net/ then -> Analyze; -> Java charts (free  )

1.   Detach chart and maximize it.
2.   In options, check only the Color Bars
3.   At the top, click on tools, -> studies, -> apply studies
4.   Using the pull down menu on select studies and click on RSI, Wilder
5.   Change the bar period to 2 and -> click ADD
6.   Again using the  pull down menu select Lin.Regr Ch,100% and click on ADD
7.   Again using the  pull down menu select Lin.Regr Ch,50% and click on ADD (this one mainly just breaks the empty space I rarely use it)
8.   Now click on SAVE at the top (if you have an account ... which is free you can save this setting) save it using your preferred name, click on OK and click close... and you have saved your parameters.
9.   Enter a symbol
10.   Using the pull down menu pick candle, next select 3 months, and in the last one select D for daily

Next how do I trade from this??

If the RSI(2) line is at the bottom, check the previous 2-3 lows for the stock and if the current RSI is lower than at least one of them, I would seriously consider buying the stock. If it is at its lowest.. I JUMP IN!

On the top chart if you see the price bar near, on or through the lower Linear Regression line (100% line).... I would seriously consider buying the stock especially if RSI(2) is LOW.

When to sell ... your call, the chart should tell you. If the price is near the upper linear regression line or RSI is peaking at 99%.. SELL...

If I'm looking for a possible short I'll do the opposite: The price should be near the top end of the regression and the RSI (2) peaking above around 99%

How can we screen the entire market for those that are set up for this??

Go to http://www.tickertuner.com then -> bullish regression -> enter price range and minimum volume. If I'm only interested with stocks with a rising trend I'll use the 3 month regression dropdown to indicate an upward trend. (free  )

For a possible short go to http://www.tickertuner.com then -> bearish regression ->... etc

Remember some do fail the test and I always check the recent news, message boards etc for possible skeletons that could spook the trend.

Next topic Will be on MACD and the Full Stochastics. I keep it simple; the triangles are just not for me.

Warren Buffet on gold ... "It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

[Ares]

Thanks NY10013,

I just added prophet to my Favorites.
I would like to give you an applaud for sharing that site.

Ares

[ny10013]

No prob Eatinfolikefish! there are tons of resources out there, guess  we just stumble on them when the planets line up

[Ares]

Hi ny10013,
You just made my day.
I'm not sure if you quoted me.
When I said, "planets lining up", I meant at least 3 timeframes (60/15/and 1 minute) pointing in the same direction (uptrending) and level 2 information giving me a buy signal.
Looking forward to more comments from you.

Thanks again,
Ares

[skydog]

I wonder who came first..    Avery Horton / TheRumpledOne  or  ny10013 ?

[TheRumpledOne]

StockHolyGrail ( aka Lerogee777 on yahoo) is the one who "invented" RSI(2) as far as I know.  He taught me RSI(2) around 2002. 

There are many posts on the yahoo message boards talking about RSI(2).

You can find our free RSI(2) filters if you google therumpledone.

I don't know if posting links are permitted so I won't.  I have been banned from enough message boards for posting links to FREE information.

I just want to make sure StockHolyGrail gets the credit he deserves for RSI(2).

He taught others and they have published his work WITHOUT acknowledging the source.  The record needs to be set straight.

[AussieTrader]

StockHolyGrail ( aka Lerogee777 on yahoo) is the one who "invented" RSI(2) as far as I know.  He taught me RSI(2) around 2002. 

There are many posts on the yahoo message boards talking about RSI(2).

You can find our free RSI(2) filters if you google therumpledone.

I don't know if posting links are permitted so I won't.  I have been banned from enough message boards for posting links to FREE information.

I just want to make sure StockHolyGrail gets the credit he deserves for RSI(2).

He taught others and they have published his work WITHOUT acknowledging the source.  The record needs to be set straight.

Post your links all are welcomed no worries. Unless that is they are just pumping / adverts.

[Russell123]

wow its a great post and one of the my favourite

[jouli]

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