If you have Timing by TradeSmith, you may notice some positions qualify for RSI Rebound.
What is this?
This is a strategy based on the Relative Strength Index.
Here are the requirements for a position to qualify:
- Select symbols that are currently in a valley with a current volume greater than 0 and be in the Health Indicator green or yellow zone
- Calculate RSI for the current valley zone based on 14 days.
- Select all symbols with the minimum RSI of 14 days that is less than or equal to 30%.
- Following step 3, the RSI must rise above 50% but stay less than or equal to 60%.
When you see the results, we sort the symbols by the Conviction Level in descending order, and then by the current RSI in descending order.
As such, you may see Yellow Zone positions.
In addition, the results are all good. Just because a position is number one on the list does not mean it is better than number five.
You can learn more about the Timing indicators in the video below: