Algorithmic Trading in C++
Bullish | Bearish |
---|---|
RSI falls into oversold territory | RSI rises into the overbought territory |
RSI crosses back above 30% | RSI crosses back below 70% |
RSI forms another dip without crossing back into oversold territory | RSI forms another high without crossing back into overbought territory |
RSI then breaks its most recent high | RSI then breaks its most recent low |
signal line
, which is plotted on top of the MACD line -> functions as a trigger for buy/sell signals e.g buy when MACD crosses above the signal line and sell/short when it goes below the signal lineParabolic SAR is used to determine the price direction of an asset & draw attention to when the price direction is changing
Formula:
A dot below the price is considered a bullish signal
When the dot flips, it indicates a potential change in price
Stochastic + MA + ADX can complement SAR to avoid false signals
SAR sell signals are more convincing when the price is trading below a long-term MA. This suggests that the sellers are in control of the direction and that the recent SAR sell signal could be the beginning of another way lower
Similarly, if the price is above the MA, focus on taking the buy signals
SAR performs best in markets with a steady trend. In ranging markets, the SAR tends to whipsaw back and forth, generating false trading signals