The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period, and this has, of course, given the IBS a nice tailwind. IBS is simply an indicator where you buy on weakness and sell on strength,…
Williams %R was developed by the famous trader and tax rebellion Larry Williams, who has given names to several technical indicators. Last week we wrote about the WilliamsVixFix indicator, and today we are explaining the Williams %R trading strategy and how to calculate and use the indicator. Williams %R does work. In this article, we…
The Relative Strength Index indicator is popular, for a reason, but in this article, I backtested the default settings of the RSI indicator, and made it better. Investments and trading is a wonderful world where large companies and small investors can participate from the comfort of their homes. You only need a device with internet…
FOMC meetings can have a significant impact on financial markets as decisions on interest rates made during these meetings can influence the direction of monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows such meetings. Want to know about FOMC meetings (trading strategies)? The Federal Open…
Connors RSI including backtest Often referred to as CRSI, the Connors RSI indicator is a momentum-based oscillator that tries to improve on the original 14-period RSI indicator developed by Welles Wilder. Unlike the original 14-period RSI indicator, the CRSI uses 2 periods as its lookback input parameter and combines the momentum measurement of RSI with…
High Probability ETF Trading, published in 2009 and written by Larry Connors and Cesar Alvarez, contains some interesting strategies. They are all mean revertive and tested on the most popular ETFs at the time of writing, which was the end of 2008, in the middle of the GFC. Do the strategies covered in the book…
There are different ways of performing technical analysis. While some focus on price action, others make use of indicators. Both moving average convergence divergence (MACD) and the relative strength index (RSI) rank among the most popular indicators used in technical analysis and trading. But what is the MACD and RSI strategy? The MACD and RSI…
This article examines how the RSI indicator works and how to develop an RSI trading strategy. The Relative Strength Index (RSI) was developed by Welles Wilder and first introduced in a magazine called Commodities (now Futures) in June 1978. Wilder published a book in the same year called New Concepts In Technical Trading Systems (he…
The RSI is one of the most popular indicators used in technical analysis. However, most people use it as a mean reversion indicator rather than a momentum indicator. Today, we show you an RSI range-momentum trading strategy. The RSI range-momentum trading strategy uses the RSI as a momentum indicator for identifying uptrends in stocks and…
In the world of trading, the Relative Strength Indicator (RSI) stands as a timeless beacon of analysis. Invented by Welles Wilder in the 1970s, it has become a cornerstone of trading strategies. Today, we unveil a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in…
