StockFetcher Forums · Filter Exchange · RSI breakout second chance<< >>Post Follow-up
1 posts
msg #47381
Ignore PSUtrader
10/8/2006 11:05:08 PM

Most of the time when 14 day RSI is overbought (over 70) it is toppy and will come down to correct. If a stock is carrying enough momentum however, it will bounce off 70 on the way down and head back up for another breakout. Ive seen this many times, most recently PYPR. Im trying to build a filter to catch these breakouts. Heres what I got:

show stocks where close is between .0001 and 5.00
and RSI(14) has been above 70 for last 3 days
and RSI(14) 2 days ago had been decreasing
and RSI(14) increasing for the last 1 Day

Id like to add a few other indicators to this filter that would further confirm the breakout. Im exploring some shorter periods for various indicators. Volume is also something I would like to work into the filter, since it is better to see volume on the red days lower than on the last green day. However that is a tough filter to build. Any suggestions would be appreciated as I think this can be a valuble filter.

805 posts
msg #47405
Ignore marine2
10/10/2006 8:01:20 PM

Your filter reminds me of Investor Business Daily's basic foundation. They believe in finding stocks that are above ma(50), momentum increasing, watch for those stocks that rise yet take a brief breather then take that second leg upward. I think your filter matches IBD's desires. If you would put IBD's best picks for a particular period of time and put them in StockFetchers Watch List then add this Watch List into this filter you are developing, you will have your best of the best fundamentally wise stocks to match up with your technical filter.
Bottom line, develope your filter geared to what IBD is advising their readers when picking a stock to invest in. I think you are almost there, you just need to add a couple of lines of code to fine tune your picks and your off to the races. I like what your doing. Let us all see what your added improvements will be and we will most certain test them and give you feed-back on how we like it.
I took your filter by the way and reversed what you were doing and came up with a bottoms-up approach catching stocks that were troughing out, instead of escalating and resting then continueing upward.

2 posts
msg #47618
Ignore ronhudson
10/24/2006 10:21:06 PM

Try the following filter to find stocks that are taking a break after hitting a new high. Try different date offsets and I think you'll find that it works better for higher priced stocks than for penny stocks.

show stocks where close is between .1 and 1000
and close reached a new 3 month high within the last 10 days lag 1 day
and double stochastic(4,2) crossed above 5
and average volume(10) is above 50000

6,358 posts
msg #47622
Ignore TheRumpledOne
10/24/2006 11:57:59 PM

I read about taking the sma(8) of the rsi(8) and trading the crossovers for FOREX trading. Perhaps it may work for stocks.

/* FOZZY go long filter */

set{marsi, cma(rsi(8), 8) }

rsi(8) crossed above marsi

close above 20

volume above 10000000

draw marsi on plot rsi(8)


I read about taking the sma(8) of the rsi(8) and trading the crossovers.

/* FOZZY go short filter*/

set{marsi, cma(rsi(8), 8) }

rsi(8) crossed below marsi

close above 20

volume above 10000000

draw marsi on plot rsi(8)


Perhaps someone will backtest.


09-13-06, 05:52
Junior Member Join Date: Apr 2005
Location: Canberra, Australia
Posts: 37

The Daily Fozzy Method


This is my first post on FF after months of reading and trying some of the numerous systems provided by members of this forum. Months ago I came across the following indicators that were posted on one of the Vegas threads. I cannot remember who posted it but I am extremely grateful for their insight and hope they do not mind if I show my way of using this indicator.

After months of testing and swapping from system to system I've come back to this indicator and in hindsight I should have stuck with it from the start as it seems to work for my style of trading.

Anyway, on with the detail. I only trade daily charts and only EUR/USD, GBP/USD, USD/JPY and USD/CHF. Why these? Primarily because these are the only ones I have backtested and have been trading for the last 3 months. I also tend not to trade Monday mornings (Australian time) as prices sometimes gap over the weekend. However, this is discretionary.

On each chart I have an 8 period RSI. I also have an 8 period MA of the RSI and Bollinger Bands with a 20 period setting, also on the RSI.

Long Entries: RSI must be below the middle Bollinger Band. Enter long on the open of the next bar after the MA has crossed above the RSI.
Short entries: RSI must be above the middle Bollinger Band. Enter when MA crosses below RSI.

Stop loss is the low/high of the previous bar. I move S/L to break even if the price moves greater than 40 pips in my direction. After the initial 40 pip move I use a trailing stop for exits (25 pips).

I only look at the charts once per day, just before 0.00 GMT. This way I know which pairs are approaching my set-up. I then place trades if my criteria has been met. That's it. A simple system that seems to work for me. Looking at charts all day does not suit me as I have a real job and I'm not in a convenient timezone. 10 minutes a day is all I need. This method provides a limited number of trades but the trades can last anywhere from 1 day to numerous days. There can also be days on end with no trades. I have found that the secret is have patience. I also have come to believe those who say longer timeframes are easier, especially for newbies.

I'm not going to say this system will always work but for me it has generated over 400 pips in September already. Please try this out on demos before putting your hard-earned into it. Just because it is working for me (at the moment) does not mean it will suit everyone.

Please feel free to comment.

6,358 posts
msg #47656
Ignore TheRumpledOne
10/25/2006 9:47:24 PM

/* FOZZY go long filter RSI(2) VERSION*/

set{marsi, cma(rsi(2), 3) }

rsi(2) crossed above marsi

close above 20

volume above 10000000

draw marsi on plot rsi(2)


I just had to try it...

Didn't mean to derail this thread so I started a FOZZY THREAD..

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