Pete¶
Notes on Pete's RSI-based trading approach.
RSI Levels¶
Non-Standard Levels
Pete uses 90 and 10 levels on regular RSI. Not 70 and 30 or 80 and 20.
Laguerre RSI¶
Pete credits Dave for it. He recommends using 0.7 gamma and reading above 80.
Safe Entry Method¶
| Step | Action |
|---|---|
| Entry | When LRSI crosses 0.8 from below |
| Exit | When it crosses below 0.8 |
Dip Buying Method¶
| Step | Action |
|---|---|
| Entry | When it crosses 0.2 above from below |
| Hold | Until it goes above 0.8 and dips below again 0.8 |
Caveat
Sometimes when you enter at 0.2, LRSI may keep going up but price could come back or make lower low etc, so it's not perfect indicator to use by itself.
Obviously, you need to use it in confluence with other indicators.