RSI(2) Dip Above SMA200 - Signals
A daily RSI(2) dip monitor for US stock indices that you can keep on any chart timeframe. The RSI(2), the 200-day and the 5-day SMA are always computed from daily bars, so the values on a 1-hour or 4-hour chart are the same as on the daily chart. A table shows what one fixed dip-buying rule did on this symbol, with costs. Nothing is optimised per chart: the thresholds are the ones the rule was researched with.
What makes it different from a plain RSI(2) line: behind the display the script runs the full trade cycle of the rule on daily bars, not only the entry condition. It tracks one virtual position, applies every exit and the stop exactly as written below, allows the re-entry on the exit day, and books each trade with costs. The table is the result of those trades, so the RSI line and the numbers come from the same daily data.
The rule:
Entry at the daily close when RSI(2) (Wilder smoothing) is below 10 and the close is above its 200-day SMA.
Exit at the first later close above the 5-day SMA, at the latest after 20 closes.
A rule exit can buy again at the same close if the entry condition is true on that day.
Protective stop: entry close minus 3 x ATR(10), where ATR(10) is the simple average of the true range. It is active from the next day and is filled at the stop, or at the open when the day gaps below it. After a stop there is no new entry on the same day.
Long only. Positions are held over weekends. In the research behind this rule, closing before the weekend removed almost all of the average result, so there is no Friday exit.
What you see:
Its own pane below the price chart: the daily RSI(2) with the entry level at 10. The line turns teal when RSI(2) is below 10 and the close is above the 200-day SMA (the entry condition), gray when it is below 10 under the 200-day SMA (no entry), purple otherwise.
On the price chart: the daily 200-day and 5-day SMA, drawn as one point per day joined by a line, so they stay smooth on intraday charts (can be switched off).
Entry and exit markers of the rule on the price chart: buy below the bar, exit above it, a stop exit as a red cross. On intraday charts they sit on the last bar of the day whose close triggered them (can be switched off).
The table on the price chart (top right): closed trades, net win rate, average gross and net result in basis points, average result in risk units (R = distance to the stop), number of stop exits, the open position (entry date, closes held, open result), the daily RSI(2) and whether the close is above the 200-day SMA, the first daily bar the statistics use, and whether the chart's daily bar is a cash session.
Daily values on intraday charts: on past bars a day's values appear once that day has closed, so the history does not use information that was not known at the time. On the current day the values move with the price until the daily close, which is the moment the rule decides. On intraday charts TradingView may load fewer daily bars; the table shows from which date the statistics count.
Costs in the table: a round-trip spread (default 2 bps) and overnight financing per calendar night (default 5% per year, about 1.4 bps per night), the cost structure of a long index CFD. Dividend credit is not booked. Set both inputs to your own broker.
Which symbol to use: the rule is defined on the regular cash session of the index, closing at 16:00 New York. On SPY, QQQ, DIA or the cash indices (SPX, NDX, DJI) the daily bar is exactly that session. On CFD and futures charts the daily bar usually ends at the broker's day end and includes the night session, so the values will differ; the last table row warns about this. Chart timeframes above 1D are not supported.
Typical behaviour, so the table does not surprise you: around 8 to 9 trades per year per index, about 3 to 4 sessions per trade on average, and about two thirds of all trades are held over a weekend. Most trades are small winners; the losers are fewer but larger, so the win rate alone says little. The three US indices give nearly the same signals on the same days, so trading all three is close to one trade with three times the size.
Limitations: the table describes the past on this symbol, it does not forecast. A two-bar RSI depends on single closes, so small differences between data feeds can move a signal by a day. The research results this rule comes from were measured on ETF closes with CFD costs; they are not repeated here because they depend on the period and the costs you assume.
Credit: the RSI(2) pullback idea above a long-term average was popularised by Larry Connors.
What makes it different from a plain RSI(2) line: behind the display the script runs the full trade cycle of the rule on daily bars, not only the entry condition. It tracks one virtual position, applies every exit and the stop exactly as written below, allows the re-entry on the exit day, and books each trade with costs. The table is the result of those trades, so the RSI line and the numbers come from the same daily data.
The rule:
Entry at the daily close when RSI(2) (Wilder smoothing) is below 10 and the close is above its 200-day SMA.
Exit at the first later close above the 5-day SMA, at the latest after 20 closes.
A rule exit can buy again at the same close if the entry condition is true on that day.
Protective stop: entry close minus 3 x ATR(10), where ATR(10) is the simple average of the true range. It is active from the next day and is filled at the stop, or at the open when the day gaps below it. After a stop there is no new entry on the same day.
Long only. Positions are held over weekends. In the research behind this rule, closing before the weekend removed almost all of the average result, so there is no Friday exit.
What you see:
Its own pane below the price chart: the daily RSI(2) with the entry level at 10. The line turns teal when RSI(2) is below 10 and the close is above the 200-day SMA (the entry condition), gray when it is below 10 under the 200-day SMA (no entry), purple otherwise.
On the price chart: the daily 200-day and 5-day SMA, drawn as one point per day joined by a line, so they stay smooth on intraday charts (can be switched off).
Entry and exit markers of the rule on the price chart: buy below the bar, exit above it, a stop exit as a red cross. On intraday charts they sit on the last bar of the day whose close triggered them (can be switched off).
The table on the price chart (top right): closed trades, net win rate, average gross and net result in basis points, average result in risk units (R = distance to the stop), number of stop exits, the open position (entry date, closes held, open result), the daily RSI(2) and whether the close is above the 200-day SMA, the first daily bar the statistics use, and whether the chart's daily bar is a cash session.
Daily values on intraday charts: on past bars a day's values appear once that day has closed, so the history does not use information that was not known at the time. On the current day the values move with the price until the daily close, which is the moment the rule decides. On intraday charts TradingView may load fewer daily bars; the table shows from which date the statistics count.
Costs in the table: a round-trip spread (default 2 bps) and overnight financing per calendar night (default 5% per year, about 1.4 bps per night), the cost structure of a long index CFD. Dividend credit is not booked. Set both inputs to your own broker.
Which symbol to use: the rule is defined on the regular cash session of the index, closing at 16:00 New York. On SPY, QQQ, DIA or the cash indices (SPX, NDX, DJI) the daily bar is exactly that session. On CFD and futures charts the daily bar usually ends at the broker's day end and includes the night session, so the values will differ; the last table row warns about this. Chart timeframes above 1D are not supported.
Typical behaviour, so the table does not surprise you: around 8 to 9 trades per year per index, about 3 to 4 sessions per trade on average, and about two thirds of all trades are held over a weekend. Most trades are small winners; the losers are fewer but larger, so the win rate alone says little. The three US indices give nearly the same signals on the same days, so trading all three is close to one trade with three times the size.
Limitations: the table describes the past on this symbol, it does not forecast. A two-bar RSI depends on single closes, so small differences between data feeds can move a signal by a day. The research results this rule comes from were measured on ETF closes with CFD costs; they are not repeated here because they depend on the period and the costs you assume.
Credit: the RSI(2) pullback idea above a long-term average was popularised by Larry Connors.
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน