Combining RSI Trend Depth and AC Acceleration for Trade Signals
Summary
The article presents a trend-following approach that combines RSI readings with the Acceleration/Deceleration (AC) indicator. RSI is divided into bands that assign a signed index to the depth and direction of a move, while changes across up to five AC bars assign a second index for movement speed or acceleration. Entry rules combine these indices to classify possible, weak, moderate, or strong directional setups. Exit rules flag a possible reversal when RSI indicates an extended move and AC turns in the opposite direction.
The author also proposes checking signals across multiple timeframes and describes implementing the rules in an MQL4 expert advisor. The document reports a small optimization over timeframe and RSI period and refers to M15 backtest results, but the supplied text does not include enough figures to assess performance, costs, or robustness. The thresholds are presented as a trading framework rather than a validated universal rule; the article itself notes that trend turning points are difficult to predict.
Key ideas
- RSI bands encode the direction and depth of a price move as a signed index.
- AC comparisons across successive bars assign a measure of acceleration or deceleration.
- Entry conditions combine RSI depth and AC speed to classify directional signals.
- A possible exit is triggered when an extended RSI reading coincides with AC moving against the trend.
- The author suggests comparing signals across timeframes and implementing the rules in an expert advisor.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.