Here is another way to catch a quick profit in the market. You simply use the IBS, RSI and a 200 day moving average to buy and sell the next day. Very impressive results using this simple technique. It works well on futures as well as on other indexes and sectors as well.
Here is the strategy logic. (Are you interested in code and workspace for Tradestation?)
- A 4 day rsi should be more than 45.
- Todays IBS should be lower than 0.3
Inter bar strength is defined as follows:
(Close – lowest) / (high – lowest)
- If todays close is more than 200 day MA and
lower than yesterday, then we buy at close.
- Exit next bar on open price.