rsi to identify trend

Hi all,

does anyone has this indicator for mt4 or can direct me to a source?

http://scientifictrader.com/stock_trend.htm

Thanks a lot guys!

Right!?

The RSI is one of the most commonly used MT4 indicators. But the guy in the link is no trader - beware!

What do you think of the concept?


I am also not quite sure why my post was moved into the commercial forum. I am interested in the concept to identify a trend with this rsi method - nothing else.

I think the concept is totally useless. There is no system as easy and simplistic as the author makes it to be. Certainly the RSI is not the indicator to do it. Some have made claims that they can trade profitably using the RSI. Maybe so, but there are many who can't including myself.

There have been numerous discussions about automated trend detectors. The consensus seems to be that nothing works although some favour Heiken-Ashi, MACD or Bollinger Bands. I don't remember anyone favouring RSI in those discussions.

Plus the site name in the link irks me. ScienticTrading is a complete misunderstanding of both science and trading. Trading is an art not a science. It requires modest mathematical skills, but very little engineering or scientific skill. Its hard to define what skills are needed for trading other than patience, discipline and emotional control. The guy who wrote that article about the RSI is not a trader.

As far as moving the thread to the Commercial section, I agree with your comment. It should have been moved to the Rookie section instead. It had no business being in the Platform Technology section.

I apreciate your opinion very much codemeister. And I agree. I've made a quick and dirty study of the concept as I understand it.

I thought of using it as an additional indicator for trendfollowing but...

It catches large moves but quite late. My setups occur first.

So I could use it to stay perhaps longer in a trend (psychological support) but my exits occur first too.

Next to that there are a lot of false signals. That does not has to mean anything when you are actually trading your own method but it does not built confidence and decreases the concept's value.

So there is no additional value although I am not totally convinced but it seems that there has more to be done than just using a simple rsi...

You experience using the RSI is the same as mine and I think most others. Some people claim they can use the RSI, but off the top of my head I can't recall the threads where I read that. As far as using another indicator in combination with the RSI, I think most of the momentum ones will give signals similar to the RSI, but not as good quality.

Glad you found out on your own without wasting a lot of time - that's an important trait for a trader.