16 lines
634 B
Markdown
16 lines
634 B
Markdown
# 2-Period RSI
|
|
|
|
This strategy was taken from chapter 9 of *[Short Term Trading Strategies That Work](https://moshferatu.dev/moshferatu/short-term-trading-strategies-that-work)* (2008) by Larry Connors.
|
|
|
|
## Rules
|
|
|
|
The original long-only rules from the book:
|
|
|
|
1. The asset (e.g., SPY) is above its 200-day moving average.
|
|
2. The 2-period RSI closes below 5.
|
|
3. Enter a long position at the close (or the following open in this case).
|
|
4. Exit the position when the asset closes above its 5-period moving average.
|
|
|
|
For taking short positions, invert the above conditions and use a 2-period RSI reading of > 95 as the entry threshold.
|
|
|
|
--- |