DislikedHi,
I had a closer look to this T3 RSI and made fast investigation what it does
for(int i=limit; i>=0; i--)
{
rsiArray[i] = iRSI(NULL,0,T3_Period,PRICE_CLOSE,i);
e1 = w1*rsiArray[i] + w2*e1;
e2 = w1*e1 + w2*e2;
e3 = w1*e2 + w2*e3;
e4 = w1*e3 + w2*e4;
e5 = w1*e4 + w2*e5;
e6 = w1*e5 + w2*e6;
t3Array[i]=c1*e6 + c2*e5 + c3*e4 + c4*e3;
I think it is correct at the end if we use as an input T3_Period only
and ignore RSI_Period. Than what it shows is RSI(T3_Period) and T3(T3_Period) of RSI(T3_Period) so this is what we are looking...Ignored
I've noticed that T3RSI GROUP peaks in combination with BasketBars color change seem to reliably predict trend shift for GROUP. That becomes confirmation in fast acting single pair trades; and provides early signal for slow acting single currency pairs.
The issue with false signals is lack of ANGLE--which is increasing Momentum. We need a GROUP Momentum indicator coded.
The TDI RSI line outside the MarketBase long period MA line relates RSI to price action. There's that fuzzy zone in which MIDDLE conditions give way to forming trends. If we wait for actual price action to move, it's safer but misses more of the total potential profit within a given trend (swing EXTREME to opposite EXTREME). HMA color change gives one such indication.
Several issues emerge when contemplating a single pair trading entry.
1. Volatility (ADR) enough to risk spread(s)? Are MARKET and/or single currency pair moving?
2. Timing in middle to extreme price action wave; early entry best.
3. Fractal longer TF WAVES support? TREND pushing entry pair trend?
4. Accelerating Momentum? This happens at RSI cross T3MA. And when longer TF WAVE overtakes current trading timeframe price action. And for slow acting pairs, when GROUP WAVE drives single pair PA moves. Related to how STRONG is the resulting price movement likely to be?
5. Our trading edge comes from the broader leading fractal WAVE viewpoint. As shown in HEATMAP, longer timeframe TREND, RSI, Momentum, and sometimes GROUP or subgroup.
Properous regards,
George