Tuesday, June 1, 2010

RSI-SMA double-trap technique

For those who find applying RSI difficult, try the following technique

When price on 1month chart (Google finance) cuts SMA 34 line

a) from above, short till RSI 14/30min on 1 month chart touches 20

b) from below, long till RSI 14/30min on 1 month chart touches 80

Stop loss: When price whipsaws to cut 34 SMA again.

Photobucket

Pl note:- "cutting" includes the crossover due to gap up or gap down

3 comments:

rochak parekh said...

again a gem of a post from u , sirrrrrrrrrrr

s.k.d.b.09 said...

Dear Jagmohanji, I have been following your posts regularly and eagerly await the next one. I find them lucid and very informative. On a couple occasions you had mentioned about mudraa. Appreciate if you can elaborate on mudraa and how to benefit from it.
Best regards,S.kumar

Young Indian said...

Dear Jagmohanji,

In your above screen shot from Google finance, it is showing intervals as 1d,5d,1m,3m .....

But for me it is showing 2min,5min,30min,daily,weekly. Please advise how to setup the way it was showing in your screen shot.

Please help.

Thanks,
Giri