Analyzing Indicator Outcomes by RSI, Stochastic, Williams %R, and ADX
Summary
This indicator tool groups historical outcomes by the rounded value of RSI, Stochastic, Williams %R, or ADX, then displays results across indicator values in a scatter chart. For each value it separates observations by whether the signal candle closed up or down, and reports sample counts alongside long and short win rates or aggregate profit and loss after a chosen number of bars. A live mode focuses on the current candle and indicator reading; a static mode lets the user inspect a selected value. A spread adjustment is available for profit-and-loss calculations, but it does not affect win rates.
The example describes a historical DJI daily sample, illustrating how observations and outcomes are counted for one RSI reading and holding period. These are descriptive historical statistics, not proof that an indicator value predicts future returns. Results depend on the market, sample period, settings, and execution assumptions; small samples and the omission of broader costs or validation can make apparent differences unreliable. The tool requires ProRealTime version 11 or later.
Key ideas
- The tool bins historical readings of four bounded indicators by rounded value and compares subsequent outcomes.
- It separates long and short results according to whether the signal candle closed up or down.
- Users can view win rates or aggregate profit and loss after a configurable holding period, with sample sizes displayed.
- A spread can be included in profit-and-loss calculations but is not applied to win rates.
- Historical conditional outcomes do not establish predictive power and may be sensitive to sample size and assumptions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.