Following on from this article on SMA RSI dips, we can take another method using these two popular indicators and instead of using N number of days, this time we could use a condition that allows us to scale up if the RSI is at a certain point on the second day.
This is the SMA RSI in code
//Strategy 2 :
//Long Entry :
//1) Close > 200 Day SMA
//2) RSI(2) < 10 Buy 1lot //RSI of 2days ago is below 10
//3) RSI(2) < 10 for second day and still above 200 Day SMA buy another lot (Scale in)
//Long Exit :
//1) RSI(2) > 50, 60, 70 (Variable)
Now we can combine the two by dragging both these strategies over the same chart and optimize the parameters. As you can see in the top bar, the optimized combinations in square brackets. We have also set pyramiding to on so if the condition is met more than once without the exit position being met it will continue to buy :
Tradesignal® is a registered trademark of Tradesignal GmbH. Unauthorized use or misuse is strictly prohibited. Data by Thomson Reuters Eikon.