StockFetcher Forums · General Discussion · RSI Bottom Failure Swing<< >>Post Follow-up
chessnut1
53 posts
msg #27465
Ignore chessnut1
7/20/2003 4:46:27 AM

I am trying to create a filter for an RSI bottom failure swing, but am not having success. A bottom failure is when the price makes a new low and the RSI is in a downtrend (under 30) but fails to set a new low, and then the RSI proceeds to exceed a previous peak.

I've tried "show stocks where the price is at a new 5 day low and the RSI(14) 2 days ago had been decreasing for the last 1 day and the RSI(14) 1 day ago was above the RSI(14) 5 day low and the RSI(14) is above the last RSI(14) 5 day high" but it doesn't give me the RSI increasing on the last day. Has anyone created such a filter, or can anyone with more experience than I have figure this out? Thanks. --BJ


holygrail
72 posts
msg #27473
Ignore holygrail
7/20/2003 3:05:50 PM

FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.

You have an ERROR in your premiss.

"I am trying to create a filter for an RSI bottom failure swing, but am not having success. A bottom failure is when the price makes a new low and the RSI is in a downtrend (under 30) but fails to set a new low, and then the RSI proceeds to exceed a previous peak."


If the price today sets a new low then the rsi will NOT be PROCEEDING to exceed a previous peak today! See the problem?

You need to simplify.

Do you want stocks when the close is a new LOW and the RSI is not as low as before?

I don't think you want the stocks AFTER the RSI has exceeding a previous peak because the price has gone up WITHOUT YOU!

I am trying to create a filter for an RSI bottom failure swing, but am not having success. A bottom failure is when the price makes a new low and the RSI is in a downtrend (under 30) but fails to set a new low, and then the RSI proceeds to exceed a previous peak.

Fetcher[show stocks where the price is at a new 5 day low and RSI(14) above the RSI(14) 5 day low]




chessnut1
53 posts
msg #27474
Ignore chessnut1
7/20/2003 4:00:15 PM

Appreciate your response HG, but the premise is correct. For a bottom failure swing the 2nd trough of the RSI line is higher than the previous RSI trough but the PRICE at the 2nd trough goes DOWN. So a divergence is created where the RSI trendline slopes up while the price trendline slopes down. Wilder considers the divergence the single most powerful indicator for his RSI.
I tried again this morning, and found some dynamite results with the filter below, but I am still not getting the syntax to yield a final-stage rising RSI (it should reach or exceed its most recent peak). What I tried this morning is: Show stocks where the price is at a new 10 day low and the RSI(14) 1 day ago had been decreasing for the last 3 days and the RSI(14) 2 days ago was above the previous RSI(14) 10 day low and the RSI(14) is above the previous RSI(14) high." -- Again, anyone able to crack this nut? --BJ


holygrail
72 posts
msg #27481
Ignore holygrail
7/20/2003 5:11:03 PM

FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.
FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.
FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.

I understand POSITIVE DIVERGENCE...

You want stocks where a LOWER LOW PRICE has an RSI HIGHER THAN the previous RSI LOW.

Once again, I think you want to buy the stocks at THIS POINT IN TIME, not after they go up, but then again, I could be wrong.

FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.
FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.
FOR THE RECORD THIS IS NOT HOLYGRAIL. THIS IS HIS TRADING BUDDY.






murknd
62 posts
msg #27489
Ignore murknd
7/21/2003 12:28:11 AM

BJ,

I think this is close -

Fetcher[low is above low 1 day ago
and low 1 day ago is below low 2 days ago
and RSI(14) is above RSI(14) 1 day ago
and RSI(14) 1 day ago is below RSI(14) 2 days ago
and low 9 days ago is above low 10 days ago
and low 10 days ago is below low 11 days ago
and RSI(14) 9 days ago is above RSI(14) 10 days ago
and RSI(14) 10 days ago is below RSI(14) 11 days ago
and low 1 day ago reached a new 10 day low
and RSI(14) 10 day low 1 day ago reached a new 10 day high
]



What is it missing?

D


chessnut1
53 posts
msg #27491
Ignore chessnut1
7/21/2003 2:13:28 AM

Wow, D, you put some real work into that one. I need to chew on it for a while. You did manage to get the RSI up last day. What would be helpful is if SF had a way to refer to the "most recent peak" [or trough]. That way, one wouldn't have to limit oneself to specifying a particular number of days. It would include all matches for instance "where the RSI(14) 0 days ago is above last RSI(14) peak." Maybe Tomb could make it happen. --BJ


chessnut1
53 posts
msg #27496
Ignore chessnut1
7/21/2003 12:13:37 PM

HG Trading Buddy, I have re-studied your post and filter, and I see your point about the benefit of not waiting until the RSI goes up again. Thank you for your help. And I'm sorry that I missed that it was you and not HG I was addressing. --BJ


TheRumpledOne
6,358 posts
msg #27575
Ignore TheRumpledOne
7/25/2003 7:28:59 PM

I am glad you have FINALLY SEEN THE LIGHT.

Good luck with your filters and trades.


StockFetcher Forums · General Discussion · RSI Bottom Failure Swing<< >>Post Follow-up

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