10.4 A Complete System

[cmeade2]

That's actually correct. When you see some structure to the curve, that means it's right. In my case, the RSI(2) just plunges to 0.00. That's a problem.

This is a bug that happens every now and then for me. Basically, the H4 RSI(2) indicator in the template goes totally haywire and is incorrect. Here is a recent example from the ChfJpy. The price has been going up steadily, but the RSI(2) has plunged down. I know this is not correct because I have other ways of plotting RSI(2).

Any insights?

cmeade2

Last week I noticed the same thing a couple of times. I thought It was a kind of superdivergence... but could be a bug.

Now, this is my EURGBP 4H reading. Price going up, RSI2 going down... Divergence or bug?

Screenshot - 01_07_2013 , 14_11_15.jpg

[nanningbob]

Hi Bob,

All the positions in the spot forex market have to be expired at 5pm EST everyday. The clearing house will roll over the open positions automatically at 5pm EST everyday. It means the open positions will be exchanged (swapped) for the new positions. Again, the new positions will expire the following settlement date at 5pm EST rollover. This process is also known as “tomorrow, next day” or simply “tom next”.

When you buy EURUSD, it means you pay USD to buy Euro. In fact, it is not you who pays USD and buys Euro. It is the liquidity provider (the bank) that does it for you and on behalf of you. They pay USD and receive Euro. When you hold your position overnight and the time reaches the roll over time which is 5pm EST, the liquidity provider has to do the rollover process and the two currencies that are exchanged during the rollover, are not generally valued at the same price. The difference in the value of the two currencies is based on the difference of the overnight bank interest rates between the two currencies.

When you buy Euro against USD while Euro has a higher overnight interest rate than USD, it means the bank gives a lower interest rate currency (USD) and holds the one that has a higher overnight interest rate (Euro). Therefore, they make some money through the higher interest rate of the currency they hold and that is why they pay you some small credit to your account at 5pm EST. Conversely, if they hold a currency that has a lower overnight interest rate and give the currency that has a higher overnight interest rate, they lose some money on the interest difference and therefore, you have to pay some small money as the swap. After the rollover at 5pm EST, you may also notice a small difference in the price of your original position and the new position assigned during the rollover.
Swap can change on a daily basis. Ultimately, with the real ECN/STP brokers , it is only the bank that calculates the swap, and the broker has no control on it.
Some banks follow the formula and some of them have their own formula and rules to calculate the swap.

Arun

That is a good explanation of swaps and a good lesson. However, it is not what I am talking about. If both of us belong to the same broker and both of us buy eur/usd at the same time and use the same lot size, the cost of that trade can differ between you and me based on our leverage. If i trade 10:1 on a 100,000 lot I pay interest on 90,000 because that is the money I borrowed to make that trade. If you have 100:1 leverage you are paying on 99,000 of borrowed money. Therefore you are paying more for that trade than I am even though they are the same size lot, same broker, and same swap rate. Your costs are higher than my costs are. People keep debating the how of swap, I am talking about the results to your account.

[nanningbob]

This is a bug that happens every now and then for me. Basically, the H4 RSI(2) indicator in the template goes totally haywire and is incorrect. Here is a recent example from the ChfJpy. The price has been going up steadily, but the RSI(2) has plunged down. I know this is not correct because I have other ways of plotting RSI(2).

Any insights?

cmeade2

RSI mean relative strength index. Price is indeed going up but its strength of move is slowing down and the indi is showing that. It is not a price action indi but strength of the move indi. It is like hitting the brakes of a car as as you approach the stop sign. You are still going forward but at less and less speed. The movement of the car is slowing and the indi reflects the change.

[cmeade2]

So you are saying that it is correct?

I don't think so.

This is a bug that happens every now and then for me. Basically, the H4 RSI(2) indicator in the template goes totally haywire and is incorrect. Here is a recent example from the ChfJpy. The price has been going up steadily, but the RSI(2) has plunged down. I know this is not correct because I have other ways of plotting RSI(2).

Any insights?

cmeade2

RSI mean relative strength index. Price is indeed going up but its strength of move is slowing down and the indi is showing that. It is not a price action indi but strength of the move indi. It is like hitting the brakes of a car as as you approach the stop sign. You are still going forward but at less and less speed. The movement of the car is slowing and the indi reflects the change.

[Ingot54]

(Moved from http://www.stevehopwoodforex.com/phpBB3 ... 979#p67979 as more relevant here.)

You're welcome..

For now i close my 10.4 info page since that consume very much my CPU i just trade just few pair.. when i close my info template, my cpu problem is gone.. maybe its because too much calculation with the indicator that need cpu power..

i use vps because i run mirroring trade, so i have two account and i do mirror using simpletrader dot net system and i dont want to run my computer 24/7 so thats why i use vps..

Thank you Jak. I have attached an indicator that will reduce your CPU usage dramatically, as far as the CSS is draining it.

10.5 CurrencySlopeStrength1.0.7d.mq4

Steve was thoughtful enough to notice my problems with CPU, and PM'd me this one attached. It calculates the position of the CSS every 10 seconds, rather than on every tick.

I have also modified my own template, to reduce the number of bars that display the CSS on each chart, as well as reduce the number of bars displaying Rsi2 and Pivots. You can make further changes yourself to my template here attached:

#10.5 navy 5.02.tpl

I have moved this part of our conversation here, Jak, because we were off topic on the other thread.

[nanningbob]

So you are saying that it is correct?

I don't think so.

This is a bug that happens every now and then for me. Basically, the H4 RSI(2) indicator in the template goes totally haywire and is incorrect. Here is a recent example from the ChfJpy. The price has been going up steadily, but the RSI(2) has plunged down. I know this is not correct because I have other ways of plotting RSI(2).

Any insights?

cmeade2

RSI mean relative strength index. Price is indeed going up but its strength of move is slowing down and the indi is showing that. It is not a price action indi but strength of the move indi. It is like hitting the brakes of a car as as you approach the stop sign. You are still going forward but at less and less speed. The movement of the car is slowing and the indi reflects the change.

According to your picture you posted price is below previous highs so price would be weakening and the indi would be showing this.

[cmeade2]

Here is another version of the RSI(2) for the ChfJpy on the H4. It is derived by literally dragging the RSI(2) indicator on top of the neotraders TMA indicator. As you can see it is still pinned.

The other indicator in the template, developed by Baluda, clearly is wrong sometimes.

[Jemook]

I've attached the indicator is the one I use and I can confirm it doesn't have bugs like your current one.

MTF TMA Slope RSI Visual.ex4

[cmeade2]

Thanks Jem

The only explanation I can think of is that Baluda embedded a new way of calculating TMA slope in his indicator. Sort like how he has been updating the CSS curves.

But since we can't plot it independently, I don't know.

I've attached the indicator is the one I use and I can confirm it doesn't have bugs like your current one.

MTF TMA Slope RSI Visual.ex4

[nanningbob]

Yellow is RSI2 showing relative strength is weakening after posting a double top on the 4H chart. Sto 5 (red) which follows price action mirrors more what you think the indi is suppose to be doing. RSI2 is doing what it is suppose to do and the STO 5 is doing what it is suppose to do.

Price action action also just crossed the daily pivot on the 1H chart so the read looks good to me.