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buy_and_sell_logic [2018/05/28 12:05]
t1m3c
buy_and_sell_logic [2018/07/27 06:36] (current)
sgtbatten [How different BUY strategy settings affect the PBL]
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 === Buying with RSI strategy === === Buying with RSI strategy ===
 +
 +The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements. It is a commonly used and very popular indicator and works well when paired with Bollinger Bands. ​
 +The default and typically used ''​RSI_length''​ for RSI is 14, lowering increases sensitivity,​ raising decreases it.
 +RSI is typically considered overbought when above 70 and oversold when below 30.
 +
 +More can be learned about this indicator here: http://​stockcharts.com/​school/​doku.php?​id=chart_school:​technical_indicators:​relative_strength_index_rsi
 +
 When buying with RSI, the buy_value must be less or equal to calculated RSI.  When buying with RSI, the buy_value must be less or equal to calculated RSI. 
  
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 === Buying with STOCH strategy === === Buying with STOCH strategy ===
 +A summary definition from [[http://​stockcharts.com/​school/​doku.php?​id=chart_school:​technical_indicators:​stochastic_oscillator_fast_slow_and_full|this at StockCharts.com]] (there is a great deal of in depth information in this article):
 +
 +The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. STOCH follows the speed or the momentum of price. As a rule, the momentum changes direction before price. STOCH is also used to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels.
 +
 When buying with STOCH, the buy_value must be equal to or less than the value of the calculated STOCH. ​ When buying with STOCH, the buy_value must be equal to or less than the value of the calculated STOCH. ​
  
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 === Buying with STOCHRSI strategy === === Buying with STOCHRSI strategy ===
 +
 +From [[http://​stockcharts.com/​school/​doku.php?​id=chart_school:​technical_indicators:​stochrsi|this article on StockCharts.com]] (much more info here, please read): ​
 +
 +StochRSI is an oscillator that measures the level of RSI relative to its high-low range over a set time period. StochRSI applies the Stochastics formula to RSI values, instead of price values. This makes it an indicator of an indicator. The result is an oscillator that fluctuates between 0 and 1.
 +
 +Traders looking to enter a stock based on an overbought or oversold reading in RSI might find themselves continuously on the sidelines. Chande and Kroll developed StochRSI to increase sensitivity and generate more overbought/​oversold signals. A move above 0.80 is considered overbought, while a move below 0.20 is considered oversold. Second, it can be used to identify the short-term trend. ​
 +
 When buying with STOCHRSI, the buy_value must be equal to or less than the value of the calculated STOCHRSI. ​ When buying with STOCHRSI, the buy_value must be equal to or less than the value of the calculated STOCHRSI. ​
  
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 BBWIDTH is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc.  BBWIDTH is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc. 
 +
 +From [[http://​stockcharts.com/​school/​doku.php?​id=chart_school:​technical_indicators:​bollinger_band_width|this article at StockCharts.com]] (much more info here, please read): ​
 +
 +Bollinger BandWidth is an indicator derived from Bollinger Bands. ​
 +
 +BandWidth measures the percentage difference between the upper band and the lower band. BandWidth decreases as Bollinger Bands narrow and increases as Bollinger Bands widen. Because Bollinger Bands are based on the standard deviation, falling BandWidth reflects decreasing volatility and rising BandWidth reflects increasing volatility.
 +
 +Bollinger Bands consist of a middle band with two outer bands. The middle band is a simple moving average usually set at 20 periods. The outer bands are usually set 2 standard deviations above and below the middle band. Settings can be adjusted to suit the characteristics of particular securities or trading styles.
 +
 +Bollinger BandWidth is best known for identifying The Squeeze. This occurs when volatility falls to a very low level, as evidenced by the narrowing bands. The upper and lower bands are based on the standard deviation, which is a measure of volatility. The bands narrow as price flattens or moves within a relatively narrow range. The theory is that periods of low volatility are followed by periods of high volatility. Relatively narrow BandWidth (a.k.a. the Squeeze) can foreshadow a significant advance or decline. After a Squeeze, a price surge and subsequent band break signal the start of a new move. A new advance starts with a Squeeze and subsequent break above the upper band. A new decline starts with a Squeeze and subsequent break below the lower band.
 +
 +Using BBWIDTH with HIGHBB, where the coin breaks the upper band is a good possible use of this indicator. ​
  
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 OBV is an unbound number, so "​normal"​ is not definable. OBV values can be modeled on [[http://​www.TradingView.com|TradingView.com]] so that you can understand and determine your own "​good"​ values to use for this indicator. ​ OBV is an unbound number, so "​normal"​ is not definable. OBV values can be modeled on [[http://​www.TradingView.com|TradingView.com]] so that you can understand and determine your own "​good"​ values to use for this indicator. ​
  
-OBV is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc. +OBV is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc. 
 + 
 +On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days. It was one of the first indicators to measure positive and negative volume flow. Chartists can look for divergences between OBV and price to predict price movements or use OBV to confirm price trends. 
 + 
 +OBV for PT is calculated as the difference between the first volume amount captured (from OBV_length periods), and the signal candle (from OBV_signal),​ in percentage.  
 + 
 +In PT, only the past 500 candles of volume are available, so OBV_length must be less than 500 (499 max).  
 + 
  
  
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