Another piece of the puzzle

Sunday, March 9, 2008

Previously RSI 8 was shown as possible reverse point. It needs more filter since on a trending market, price tends to continue following the trend.

The filter inserted is LWMA with the value of 8, 24, 48 and 192. Generally 8 and 24 gives the signal when it crosses and the rest is dynamic support and resistance. 8/24 cross should be inline with RSI8. Meaning when the cross happens, RSI8 value should be < 50.

If you see the chart, I entered 2 position based on RSI8 max. The price hovers above my entry point and at the end 8/24 cross + RSI8 <50. I enter another post. Guess what, my early entry is only 10 pips lower then after i got the signal. Hopefully next week EG will continue to drop.

BTW, I found that MV indicators are different from MT4 brokers. Its seems that MV indicators are much more accurate and less prone to whipshaw. Furthermore MV has the last piece of the puzzle which is not available on MT4 platform.

Maybe next time I will post the last piece.

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