I just completed the ‘strategy #1’ lecture, where Chris explained using the RSI crossover strategy during both ranging and trending markets. He gave a beautiful example of how to alter the RSI calculations to use for upward trending markets; however, I wanted to check my understanding of how to manipulate the RSI tool to permit the logic to hold for downward trending markets when I’d want to short. Can someone check my logic?
if in a bullish trend, change RSI upper limit to 100/RSI length to 5 or 8 — Chris’ information
if in a bearish trend, change RSI lower band to 0 (to eliminate buy indication)?/RSI length 5 or 8? —my guess
I’m assuming the 5 or 8 RSI period is aggressive regardless of direction of the trend; however, I could be wrong.