
What was that old BASF commercial tag line? "We don't make the things you love, we make the things you love better." That's what I hope I accomplished with this little beauty. I took the original StochRSI and added some visual enhancements, then I added a second instance of it and made it my Trigger Line. I was very pleasantly surprised how darn well it worked for generating actionable signals.
Look at the screenshot. The green and red stars are the signals generated. Ok, 'so big deal' you say. And I'd say you're correct. As a stand-alone indicator, it's actually really good, but we want more than good. So the other line on the chart is my old reliable dpLRL (Linear Regression Line) indicator. So how to use them together? Wait for the StochRSI signal star to paint and then wait for the dpLRL's 'tab' (see arrows) to paint. When price closes on the far side of the line, consider the trade. Use the 'validation line extension' (those red and green horizontal thick line segments) to see if price is respecting the StochRSI's signal. If it is, even if it is a couple bars later, then consider entering at that point. Works on all bars and timeframes.
As always, feel free to give helpful feedback, positive or negative. It's the only way things get better.
Category The Elite Circle
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