Momentum Pinball: Using LBR/RSI and the First-Hour Range

Summary

Momentum Pinball uses a daily LBR/RSI reading to set the likely direction for the next session, then uses the first hourly bar to define an entry and initial stop. A reading below 30 signals a potential buy day; a reading above 70 signals a potential sell day. The article explains LBR/RSI as RSI applied to a rate-of-change series that compares prices two bars apart, and describes an indicator for displaying its thresholds and trading levels.

For buys, a pending order is placed above the first hour’s high, with a stop at its low; sells use the mirrored setup. The article also discusses re-entering after a losing exit and holding profitable positions overnight, closing on the second trading day. It describes implementing the signal module, indicators and an Expert Advisor in MQL5, and shows tests on EURJPY, EURUSD and XAUUSD using recent historical quotes. The source book’s exit rules are ambiguous, and the reported tests are illustrative rather than optimized or conclusive evidence of profitability.

Key ideas

• The prior daily LBR/RSI reading determines the intended direction for the next session.
• LBR/RSI applies RSI to a rate-of-change series that compares prices two bars apart.
• The first hourly bar sets the pending entry level and initial stop for the session.
• The article describes holding profitable trades overnight and closing them on the second trading day.
• Exit guidance in the source strategy is ambiguous, and the example tests do not establish profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.