RSI issue or something else?

jayvee · Tue, 14 Apr 2020 19:14:22 +0000

Hi guys, hope you’re all well! I’m seeing issues when using RSI as a pullback entry e.g. if RSI[7] crosses under 70 then short. When backtesting I saw an entry even though the condition was not met. Another thing is that I’ve put in a supertrend indicator to only enter short trade if close below the supertrend [80,8] – if there was just an issue with the RSI, this should have prevented the entry but it didnt. I also removed the supertrend just to see if it made any difference, but alas, still the same issue. So I am really bamboozled – apologies in advance if this is something that is really simple and I’ve just been silly. I tested on ‘mastercard’ stock 1 hour timeframe. Can someone please help/advise. Many thanks The code is atr= averagetruerange[8](close) myrsi = rsi[7](close) st= SuperTrend[80,8] Bearish0 = (myrsi crosses under 70) and close < open[1] and close<st IF Bearish0 THEN SELLSHORT 1 perpoint AT MARKET set stop loss (4*atr) ENDIF

This topic has 15 replies, 3 voices, and was last updated 3 years ago by jayvee.

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05/18/2020 at 11:14 AM #132109

jayvee

Ah, I thought it would take into account previous candlesticks that are not shown with the smaller units to inform the current status. One of my trades actually got executed – the clsosing price was above the supertrend line on the smaller units (100 units), but when I looked over longer time (10000 units), the closing price was below the supertrend line.

So does the pro order function by only looking at the immediate candlestick as a measure of time-frame? Wouldn’t this be an issue with other similar (lagging) indicators too?

I haven’t got any reply from the support team yet; not sure how long they take to reply (sent it a month ago). Yes with IG.

Thanks Nicolas

jayvee
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