Oscillators – RSI / Stochastics
RSI – Relative Strength Index – Measures speed and magnitude in price changes.
Stochastics – Measures momentum in price find trends and predicts reversals.
All examples shown in this section will be done with RSI. However, RSI and Stochastics will both work in a very similar manner.
Calculate with AVG/RSI/D/K:
⤷ Refers to which lines need to be in a valid position. If both options are selected for the indicator. Then BOTH need to valid at the same time.
Lookback Period:
⤷ Refers to how many bars it will lookback for the conditions to be true.
⤷ Example with value of 3: It will enter if the RSI/Stoch is at a correct level within 3 bars of your current Signal bar.
Note that there seems to be an issue with some strategies on NinjaTrader that cause indicators added with AddChartIndicator() to disappear. It does NOT affect functionality, it will keep filtering your trades as intended.
Long Above Upper / Short Below Lower:
Long Trades:
⤷ This option will take Long trades at the Auto Entry Signal(Engulf Shown), if the RSI/Stoch line is above the Upper Limit. (Pic 1)
Short Trades:
⤷ This option will take Short trades at the Auto Entry Signal(Engulf shown), if the RSI/Stoch line is below the Lower limit. (Pic 2)
Long Mid / Short Mid:
Long Trades:
⤷ This option will take Long trades at the Auto Entry Signal(Engulf Shown) if the RSI/Stoch is above the Lower Limit and Below the Upper Limit.
Short Trades:
⤷ This option will take Short trades at the Auto Entry Signal(Engulf Shown) if the RSI/Stoch is above the Lower Limit and below the Upper Limit.
Long Below Lower / Short Above Upper:
Long Trades:
⤷ This option will take Long trades at the Auto Entry Signal(Reversal Shown) if the RSI/Stoch is Below the Lower Limit (within the lookback period).
Short Trades:
⤷ This option will take Short trades at the Auto Entry Signal(Reversal Shown) if the RSI/Stoch is above the Upper Limit (within the lookback period).
