Hi! My question is regarding the strategy "Asymmetric RSI, ARSI (Vervoort)" by Eugene (8/14/2008). I understand that price makes a low and a lower low, and the ARSI makes a low and a higher low. With the same strategy, is it possible to get a signal when ARSI makes a low and a lower low within the last three bars? Anotherwords, when ARSI makes a low (and a higher low) at the current bar OR the two previous bars.

Best regards,
Hamid

Hi Hamid,

You can modify the strategy to your taste. However, with this change the entry signal still has to wait for the price making a new low. Even though the ARSI gets a speedup. Makes sense?

Eugene, thanks for your response.

Yes, it makes sense. I'm not a programmer. Is that something I could get help with?

But it does not make sense to me, as the bar of entry is not changing.

Some of the alerts will be different, right? I was going to work with the entry and exit after examining the new alerts.

Eugene, here's an example on backtest of XOM:

8/6/2007 price makes a low, but ARSI makes a low a day before on 8/3/2007.
8/16/2007 price makes a lower low, ARSI makes a higher low.

Another example is MSFT:

5/26/2010 price makes a low and ARSI makes a low.
7/1/2010 price makes a lower low but ARSI has already made a low prior day.

The current strategy looks for the exact match and misses the divergence.

How can one modify the script so that a signal is generated even when ARSI makes a low (or a higher low) one or two days prior to price? Hope this makes sense.

This code is looking for an exact match. Try a different "divergence engine" that allows some room for proximity:

QUOTE:
The number of bars of separation allowed between the peaks (troughs) of price and the oscillator. Recommend 6.

Divergence Between Two DataSeries (Detect, Plot) in Community Components.

The underlying principle is quite different, though.