Originally Posted by ValeoFX

After successfully trading the new version of the RSI-5 on the 5M_Chart together with its improvements, I am happy to inform you that I have found the overlay of a 14-RSI over the 5-RSI to be extremely effective for change in direction.

Beauty of this method is that you can "back-test" the results as it does NOT repaint at all.

Whenever the RSI-5 crosses above / below the RSI-14, the directional change is in effect. What is also of extremely good value is the fact that in a retrace, the 5-RSI does NOT cross the 14-RSI and one knows immediately that the ensuing direction is still strong - its like the ZLR on the CCI.

Furthermore, I have added a Z_MTF_RSI set @ TF 60 and setting @ 5 over all of the RSIs so that you can see where the 5-RSI is on the H1-chart and what I find is that whenever the RSI-60M is above the 50%-level, it confirms the long signal and vice versa when the RSI-60M is below the 50%-level. I attach this indicator here for your perusal and use, thanks to my friend Gerhard (DayTrader) for his assistance in helping me to achieve my desired goal with the RSIs.

I have also added the Template seperately in Post #2 so that you do not have to download the entire spectrum of indicators again.

I look forward to hearing from your success with this method.

Best wishes.

Originally Posted by wibitiens

Thanks for this valueable research Valeo
Gotta try it now. Good Job

Cheers,

Originally Posted by Joe SDF

I have profited from trading the XO-Method and would like to now make a small contribution to this methodology. In addition to the normal XO-Method entries I have been applying a slightly modified technique to that popularized by noted US trader Stanley Kroll: “Trade with the Major Trend; against the Minor Trend.” For example if the Major Trend is UP Kroll waits for the Minor Trend to turn DOWN for his entry Long. What I have been doing a little differently is that I wait for the Minor Trend to hook back UP for my entry Long. Please excuse me egotistically calling this “Joe’s Entry” and here is how I am applying it within the XO-Method:

If the Major Trend (XO A) and Minor Trend (XO) are UP (i.e. 2-Green bars) I wait for the XO bars to move down against the Major Trend and my entry Long is at the Close of the first bar that hooks back up toward the Major Trend.

Here are some of my observations from real trading:

This entry will never be the 1st XO-Method entry but it provides excellent additional points to board an existing major move or a point to add to your position.

I have only had this not work in 1 entry out of 20 times but still always use a close SL.

This entry frequently precedes an intermediate XO-Method entry by several bars providing more pip’s total profit.

Here are several examples from Thursday, 5/10/2007, with GMT times:
02:50 – XO-Method intermediate entry not taken because MTF RSI<50 and STO too low.
07:15 – a perfect example of a Joe’s Entry. It preceded the intermediate XO-Method entry at 08:00 by 45-minutes and your entry was 12-pip’s better.
We had a short @ 06h15 GMT for 20 pips. Your entry was against the entire set-up, inclusing the Stochastic which was indicating further short. We had NO signal at 08h00, but only @ 10h40 GMT which was not tradeable. In fact the first tradeable LONG signal came @ 12h55 GMT @ 1.9802 = maybe you could show us a screen-print when you post next time as I would love to see what it is that you see and I am NOT seeing.
08:00 – XO-Method entry. No entry on my charts, which now makes me worried that I have it wrong. Maybe an EST reference would be better of you don't mind??
10:15 – XO-Method entry. Same problem here
11:05 – Joe’s Entry not taken due to UK BOE Interest Rate Report.
12:00 – Another good Joe’s Entry. It preceded the intermediate XO-Method entry by 1-bar and your entry was 7-pip’s better. Reason for me not entering here, is the "overheated" CCI_Turbo @ >250
12:40 – XO-Method intermediate entry not taken due to US Economic Reports at 12:30.
16:30 – Joe’s Entry preceded the intermediate XO-Method entry by 1-bar and your entry was 13-pip’s better. Now I am really, really worried that I have the times wrong. Sorry, Joe.
21:40 – Another Joe’s Entry providing a 9-pip better entry.

The bottom line appears to be that this entry can get you onboard a little early with a few extra pip’s profit. The caveat is that nothing in trading works 100% of the time so have a look at this and see if it fits into your trading style.

Good trading,
Joe SDF

Originally Posted by ValeoFX

After successfully trading the new version of the RSI-5 on the 5M_Chart together with its improvements, I am happy to inform you that I have found the overlay of a 14-RSI over the 5-RSI to be extremely effective for change in direction.

Beauty of this method is that you can "back-test" the results as it does NOT repaint at all.

Originally Posted by jimven

I have downloaded your post of RSI_Label_A and RSI_Dots, but I don't understand what you mean when you say they do not repaint. I thought you meant that for the current period (shift=0), they don't readjust at each price tick. Were you referring to these indicators when you wrote of the "new version of the RSI-5, or some other indicator? RSI_Label_A and RSI_Dots do repaint at each tick.

I'm sorry if I sound uninformed, but I'm new at this, and repainting of the indicators on the current bar has made decision-making a bit difficult for me.

Originally Posted by jimven

I'm sorry to interrupt your more serious trading discussion. I now understand that indicator movement during the formation of the current candle is NOT repainting. If I get your meaning correctly, backtesting an MTF indicator does not result in its recalculation. It's completely static, so the results should be predictable, just as displayed.