Indicator Insights¶

Lessons learned from extensive testing and tweaking of indicators and related tools.

RSI Insights¶

Learning Resources¶

Must-Read Resources

Hidden Divergence Explained: https://www.youtube.com/watch?v=YqHTDBJlkb0
Great explanation of hidden bullish and bearish divergence
Amazing Article on Indicators: https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/introduction-to-technical-indicators-and-oscillators
Comprehensive introduction to technical indicators and oscillators

Pete's RSI Levels¶

Pete uses 90 and 10 levels on regular RSI. Not 70 and 30 or 80 and 20.

Rubber Band Effect¶

Ben of Verified Investing

Having too low RSI under say 30-40 entire day on a stock getting hammered also sometimes acts like a rubber band and may push up for small 3-4% push-ups.

Doji Candle Reading¶

Also on doji candle if there is no top shadow then it could be reversal on uptrend. Watch the doji candle reading videos properly.

Laguerre RSI¶

Pete credits Dave for it. He recommends using 0.7 gamma and reading above 80.

Entry Methods¶

Safe Entry: - Enter when LRSI crosses 0.8 from below - Exit when it crosses below 0.8

Dip Buying: - Enter when it crosses 0.2 above from below - Hold it 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.

https://www.youtube.com/watch?v=vDn37rK5C0s&t=2s

MACD Insights¶

30 Minute MACD Scalping Strategy¶

High Profit Strategy

+$45,546.52 in one day with the 30 Minute MACD Scalping Strategy

https://youtu.be/2n2Jt0PEPss?si=IfiLcPD5KGJnRN9V

Uses 30-minute timeframe
MACD-based entries and exits
Scalping approach with quick profits

Volume Indicators¶

Learning Resources¶

Video	Description
https://youtu.be/6tUaSxOJh0o?si=cC31Lu1QFait3e35	Volume analysis fundamentals
https://youtu.be/19O_iWtiA18?si=Ks88cURB5CxHukqW	Volume patterns and signals
https://www.youtube.com/watch?v=EQtWkfDMw6E	Volume-based trading strategies
https://www.youtube.com/watch?v=a1t178ghFek	Understanding volume spikes
https://www.youtube.com/watch?v=IH_hz6oSC-Y	Volume confirmation techniques

VWAP (Volume Weighted Average Price)¶

Learning Resources¶

VWAP Education

VWAP Tutorial: https://www.youtube.com/watch?v=CiVjVAlqzPM&t=657s
Comprehensive VWAP explanation and usage
Reddit Discussion: https://www.reddit.com/r/Daytrading/comments/13qdbtc/is_vwap_really_that_reliable/
Real traders discussing VWAP reliability and use cases

Other Indicators to Study¶

OBV and Relative Volume indicators - They sound interesting to understand DTL breakouts
CVD indicator - To see how volume is in addition to my PVT, BBT indicators
CVD, VWAP, Hurst Exponent - Look into other indicators which Tej used
John Ehlers' Laguerre Filter - Improve my indicator by using its concepts
Richard Moglen's Relative Measured Volatility - And also has a relative strength indicator (I think it's close to my 50 NRSI with 20 day signal line)
https://www.youtube.com/watch?v=qlRunaELLLs

Dave Wyse Warning¶

Unknown Long-Term Performance

Dave is selling high win rate with his system. We don't know what his true win rate over a long period of time is. In his video he shows over few weeks. We don't know how his system works on any chart, say NVDA on 5 min basis tested for years.

Useful Resources¶

Reddit Communities for Indicators¶

Link	Description
https://www.reddit.com/r/TradingView/comments/1426vuh/most_successful_indicator/	Discussion on most successful indicators
https://www.reddit.com/r/RealDayTrading/wiki/index/	Comprehensive trading wiki
https://www.reddit.com/r/RealDayTrading/comments/x9dwv0/real_relative_strength_to_sector_indicator_auto/	Real Relative Strength to Sector indicator