RSI(2)

The trading model as originally proposed by Larry Connors is very simple and consist of long-only trades. As a reminder, the rules are as follows:

• Price must be above its 200-day moving average.
• Buy on close when cumulative RSI(2) is below 5.
• Exit when price closes above the 5-day moving average.

The key components you want to see in a valid RSI bottom are the following:

• Double bottom (RSI hits at or below 30 twice within 1 hour of each bottom)
• High volume on first price bottom
• The first bottom on the relative strength index is the first touch of 30 or less on the RSI in the last 39 bars (represents half a trading day on 5-minute chart…feel free to change the bar interval to reflect your trading time frame)

- See more at: http://tradingsim.com/blog/relative-strength-index/#sthash.bWmdQxeE.dpuf

• Double bottom (RSI hits at or below 30 twice within 1 hour of each bottom)
• High volume on first price bottom
• The first bottom on the relative strength index is the first touch of 30 or less on the RSI in the last 39 bars (represents half a trading day on 5-minute chart…feel free to change the bar interval to reflect your trading time frame)

- See more at: http://tradingsim.com/blog/relative-strength-index/#sthash.bWmdQxeE.dpuf

The key components you want to see in a valid RSI bottom are the following:

• Double bottom (RSI hits at or below 30 twice within 1 hour of each bottom)
• High volume on first price bottom
• The first bottom on the relative strength index is the first touch of 30 or less on the RSI in the last 39 bars (represents half a trading day on 5-minute chart…feel free to change the bar interval to reflect your trading time frame)

- See more at: http://tradingsim.com/blog/relative-strength-index/#sthash.bWmdQxeE.dpuf

 The key components you want to see in a valid RSI bottom are the following:

 -Double bottom (RSI hits at or below 30 twice within 1 hour of each bottom)
 -High volume on first price bottom
 -The first bottom on the relative strength index is the first touch of 30 or less on the RSI in the last 39 bars (represents half a trading day on 5-minute chart…feel free to change the bar interval to reflect your trading time frame)

The key components you want to see in a valid RSI bottom are the following:

• Double bottom (RSI hits at or below 30 twice within 1 hour of each bottom)
• High volume on first price bottom
• The first bottom on the relative strength index is the first touch of 30 or less on the RSI in the last 39 bars (represents half a trading day on 5-minute chart…feel free to change the bar interval to reflect your trading time frame)

- See more at: http://tradingsim.com/blog/relative-strength-index/#sthash.bWmdQxeE.dpuf