No worries, u are not offending anyone. Some of the things u said sounds quite logical (to me).Wiggy1965 wrote:
Nippon,
I understand the nature of the 10.4 strategy and that price can continue to move and though the RSI is flatline....This comment only highlights my comments that we shuld be waiting for a pinning of the RSI at the 0 or 100 level as this is the best way for this indicator to tell us price has peeked....
Note: The 20 and 80 mark on the RSI indicator are standard number provided with the RSI indicator and not something that bob has specifically added or refers to in anything i have read....
I draw your attention to page 14 of Bobs doco, re RSI
"Also inside these indicators is the RSI 2 (Relative Strength Index); which gives you a signal to start setting your pending orders. It looks like this and is the gold colored lines. When put inside the slope indicators it flattens out at the top and the bottom and gives you the signal that you have a dip in the UT. See # 1-5 below. So when price is above the 240 you are looking to enter buys, the RSI 2 signals to set your pending orders and the AO confirms your entrances and warns you to exit. See the light blue areas numbered 1-5 below."
Note the "flattens out at the top and bottom" comment
The object of the RSI flattending out (and i really believe this) is the keep you out of trades that you don't want to be in....I give you a couple of examples where trades may/have been taken with a touch of the 0 or 100 lines....
USDCFH, I bet some people have been in this 14 hours and are staring at it right now...I'm not, as RSI is telling me there is more selling....Now the trade could work out, but it could still go lower providng a better entry....
Another example is EURUSD, i know a bunch of people have tried to short this over the last ten days to two week...It's going nowhere....
Now i know you will find a bunch of example of trades I'm missing, but that is not the point, because a missed trade cannot hurt me....
I know i bang on about entries, RSI this RSI that, but the initial entry is the most important and you want it to move..So you want the best trades with the best chance of a solid move in the right direction....so i'm looking for trades that from what best i can tell are completely oversold or brought.....you want to make sure it move at least until you can add another position or set to break even, this way you are covered from the market, you cant be hurt, a free trade....
If you are happy to enter at anywhere between 80 and 100 or 0 and 20, then you are saying "i'm happy for this trade to go into DD for a period of time before it start to move in my direction".....Now with 4H charts that is a huge risk, just like the USDCHF that people have been if for 14 hours and still does not look like going positive soon...
I want to be sure with the tools i have available to me (or provided as part of the 10.4 template) that i have ensured the retracement is complete....Is over 80 or below 20 comprehensive enough...? for me no....do i miss trades yes....am i OK with that yes...!
Am i in the USDCHF trade no, have i tried to short Euro over the last week and a bit, no...am i ok with that yes...
I apologies in advance if i jack anybody off....
Regards Wiggy
Hmmmm…… seems to me u are quite perfectionist. U are not wrong, in fact, very desirable, but if you are so stringent, then u have to wait and wait and wait…………zzzzzzz…….. for the most desirable setup. I can’t tolerate, hahahhaha.
Some of these trades have very extreme RSI. Some were at 99 point something, close to being perfect 100.
I look at setups in totality. If the set up looks nice, I can compromise a bit on the rsi reading. Eg. If it is nearby 240ma, my SL is smaller, if RSI is at 98 something, it’s ok for me, I can tolerate a bit of temporary drawdown (as long as the trade does not go bad). U know it is very very difficult to time perfectly until totally no drawdown even if we babysit all the while.
Ya, UsdChf looks not good now. Fortunately I was not in as I am prejudiced against this pair.
