iCharts Discussions

[Stockhunter]

Hello Friends - Since a lot of traders here are intraday traders and often the questions I recieve are around how can the RSEX be used effectively for day trading I thought I will share some secrets of using RSEX EOD.

For RSEX intraday, I use 10 mins timeframe. Any lesser timeframe will give more signals and earlier signals, however will have more whipsaws as well. I find 10 mins suitable, you can find your niche in some other time frames too.

Remember, like any other indicator RSEX will also have whipsaws on intraday timeframes. However the winning ratio is more than 60-70%, the losses are much smaller compared to profits hence net net it will be a profit at the end of the month.

As they say, one small losing day, one breakeven day and one big winning day still makes a profitable and successful trader.

RSEX, The parameters remain default as on icharts i.e 21,9

The rules for 10 mins remain same as 30 mins swings, however still to reiterate:

1. Each crossover has to be traded once the candle is complete. The crossover should be CLEAR and not mere touching of the two lines (I call them kiss).

2. Each trade is for 2 lots, one lot booked as soon as you get 20 points.

3. Let the second lot run until the opposite CLEAR crossover happens. Book the second lot here and immediately reverse and open a new position of two lots each.

4. Repeat the above daily and at day end book all your positions since its a intraday strategy only.

For any clarifications, please leave comments here.

Cheers
SH

[akauddy]

I use AmiBroker for off-line studies. Anybody has any idea where I can find AFL files that can plot RSEX on AB charts? I searched in the AFL Library, but there is nothing with this name. Is RSEX called something else there?

I've been following this thread, and definitely it holds a lot of potential. SH - Thanks a lot.

[Manav]

guys, use RSEX alongwith with Slow Stochastic...one of the best combination...

[vinst]

Does this combination avoid some whipsaws? Can you please post a chart?

thanks,
vin

[Manav]

Posting 3 EOD Charts and 1 intraday 15 min chart with RSEX and Slow Stochastic combination..Pls check..If any comments, pls post.

[emsenthil123]

Manav,

Can you post the chart with your trades marked on it?
It would be easier to understand it than going thru the XLS and comparing it with the chart...

Thanks in advance,
Senthil.

[Manav]

Senthil..plz check in rsex and slow stoch indicatrs in the charts..i hv highlited the entry/exit levels. Arrows mentioning the combination of both indicators.

[sharetiger]

manav,do you give importance to this parabolic SAR,and moving averages or only trade desicion based on RSEX,and SLOW STS?
pls do reply......

[Manav]

Sharetiger...sar and avg crossovers are generaly for long term view only. For intraday and momentum trades, they can be overviewed. Go with rsex and slow stoch.

[Manav]

Posting one classic example of combination of RSEX and Slow Stoch on monthly charts of Shree Cement...It gave a buy signal around 400 levels ..it can move further now...

[Stockhunter]

Thanks Manav for adding more value to RSEX. sincerely appreciated.

Its nice to see people playing and combining RSEX with other indicators to generate their trade signals.

Cheers
SH

[Stockhunter]

Posting todays 10 mins charts that could have been used to generate the intraday trades.

Cheers
SH

[sharetiger]

thank you....manav and stockhunter for your valuable updates and infos..........
thank you.........

[Stockhunter]

and this is how 30 mins RSEX positional trades could have been played using my rules.

Charts are NS and not NF but I will use them to see how many trades got generated since 24/02 and what was the net profit. Remember as per my rules each trade is 2 lots and 1st lot target is 40-50 points.

Date 24/02 - bought at 2700. NIfty opened at 2750 on 25/02 hence 1 lot booked with 50 points. Second lot still running.

Date 25/02 - sold the last lot at 2777 and booked 77 more points. Immediately shorted fresh 2 more lots at 2777 again.

Date 26/02 - squared off shorts at 2748 total profits 58 points. Immediately longed fresh 2 lots at 2748 again. Nifty made a high of 2796 but couldnt touch 2798 same day hence carry both lots next day.

Date 27/02 - Bearish crossover at 2761, booked both longs total profit 26 points. Immediately shorted 2 fresh lots at 2761. Nifty touches 2711 same day hence profit booked on one lot 50 points. Bullish crossover at 2728 hence booked 2nd lot as well with 33 point profits. Immediately opened fresh 2 lots longs at 2728. NIfty touched 2773 same day again but still less than 50 points profit hence carry forward.

Date 02/03 - Gap down. Bearish crossover at 2697. Close 2 long lots at 2697 (loss 62 points). Immediately open fresh shorts at 2697. No crossover or 50 points this day hence carry forward both shorts.

Date 03/03 - Bullish crossover at 2669, book both shorts at 2669 with a profit of total 56 points. Open two lots fresh longs immediately. Bearish crossover at 2633 and square off shorts with loss of 72 points. Open fresh shorts. Carry them tomorrow.

To summarise, in last 5-6 trading days, there were 8 trades generated out of which 6 were profitable and 2 were losing.

Net profit of 216 points with just simple crossovers in 8 trades. Had we aimed just 40 points for 1st lot the profit would have been around 350 points.


Cheers
SH

[vinst]

Manav,
You seem to be taking 80/20 as levels for slow sto. Suppose if rsex crossover does not happen in synch with STO crossing its levels, should we ignore that trade?

regards,
vin