Case study tracking RCI over short and long term
Hello!
Investigating FX, this is Satori.
Another typhoon seems set to come this weekend, doesn’t it?
This year really has been busy, hasn’t it?
Now, for a while from now, I will introduce indicators to capture the market from both long and short sides using multi-timeframe and multi-signal trend-following and counter-trend methods.
In the sub-window, the RCI MTF Multi-Signal Indicator that tracks RCI in both long and short terms is displayed.
On the 15-minute chart, you can see a chance to capture an 80-pip price movement.
In the main window, to convey a sense of price movement, the N-Entry Indicator shows a 20-pip reversal.
In the default settings, when either the pink RCI(9) long-term trend line on the 4-hour chart or the green RCI(9) mid-term trend line on the 1-hour chart is at or above +50 or at or below -50, a signal, email, and alert will track the short-term 15-minute RCI(9).
The conditions to display a signal can be customized from the default five settings crossing levels +80, +50, 0, -50, -80 to other five settings such as +85, +60, 0, -60, -85.
By default, signals are not shown when crossing RCI = 0, but you can enable signal display crossing zero by changing settings.
By default, signals are not shown when crossing RCI = 0, but you can enable signal display crossing zero by changing settings.
The settings are highly flexible, allowing you to set the long-term RCI to daily or hourly charts, and the mid-term RCI to 30-minute charts, etc.
The initial calculation periods for short-term, mid-term, and long-term are all set to 9 by default, but using the included Period Setting Indicator, you can set them all to 9, 26, 52 on the same timeframe, or adjust to 6, 26, 52 so that the short-term reacts faster.
Basic usage: as long as the RCI trend is rising or high, when the short-term RCI turns negative, take a counter-trend buy with a downward arrow; when the short-term RCI turns positive, take a trend-following buy with an upward arrow.
During counter-trend trades, imagine aiming for a slightly larger price move with a somewhat larger stop loss.
During trend-following trades, imagine aiming for a slightly smaller price move with a somewhat smaller stop loss.
In any case, when the long-term trend is rising, there is a buying timing between the down-arrow of counter-trend signals and the up-arrow of trend-following signals.
Of course, if you can ride the trend, try to capture larger price moves.
The figure above shows an example where the GBPJPY chart’s sub-window displays the long-term RCI(9) on the 4-hour chart, mid-term RCI(9) on the 1-hour chart, and short-term RCI(9) on the 5-minute chart with the RCI MTF Multi-Signal Indicator.
On the 5-minute chart, you can see a chance to capture a 40-pip movement.
In the main window, to convey a sense of price movement, the 20-pip reversal of the N-Entry Indicator is displayed.
The above figure shows the EURUSD chart’s sub-window with the long-term RCI(9) on the 4-hour chart, mid-term RCI(9) on the 1-hour chart, and short-term RCI(9) on the 1-minute chart using the RCI MTF Multi-Signal Indicator.
On the 1-minute chart, you can see a chance to capture a 10-pip movement.
In the main window, to convey a sense of price movement, the 5-pip reversal of the N-Entry Indicator is displayed.
Additionally, the following pages introduce examples of effectively utilizing RCI (Rank Correlation Index) by incorporating chart patterns and moving averages.
http://fx-koryaku.com/fx-technical-method/entry-signal-toriimayumi-201702
Thank you very much for reading again today.
Please take care and stay well.
Technical Trade Blog Ranking
///////////////////////////////////
Email: info at mark abproducts.biz
Skype: sinsatori
Blog: N-Entry Action FX Investigations:
Indicators & Tools & EA:
Issuer: Art Brain Products
Contact: Satori Mind
× ![]()
