Connors’ 2 Period RSI – An Effective Short-Term Trading Strategy

The third step of the RSI 2 period trading strategy deals with the actual timing of the entries for the trades. Connors advocated taking positions just before the closing. Connors recommended exiting the long trades on an advance over the 5-period SMA. Similarly, he recommended closing out short positions on a decline below the 5 SMA.

In the above daily chart of ACC Ltd, we can see that prices are trading above the SMA hence the longer term trend is up and trades are to be considered from the long side only. We go long as the 2 period RSI dipped below the 5 level oversold threshold limit. All the three trades produced nice trading profits. In the above daily chart of Aurobindo Pharma, we can see that prices are trading below the SMA hence the longer term trend is down and trades are to be considered from the short side only.

Introduction

We go short as the 2 period RSI surges above 95 overbought threshold limit. All the short set-ups turned out to be nice short term trading opportunities. To conclude, we can say that Connors RSI 2 trading strategy is a very effective trading system and is suitable for aggressive short-term traders. How to do Trend Analysis?

February 18, Comments 8 Dhanashree Hardikar says:. Please guide. Sakshi Agarwal says:.

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Hi, You can just use the ready Technical scans in StockEdge! Thank you for Reading! Dhanashree Hardikar says:. Hi, There is no option in creating of creating new scans in StockEdge. Hi, Please refer to our blog on How to make a combination scan. Arun Kumar Goyal says:. Hi, Yes as it is 2 period RSI it will show different signals. Leave a Reply Cancel reply Your email address will not be published.

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How To Trade The RSI2 Even If You're A Newbie

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Wait for RSI signal. Actual buy and sell signal.

2-Period RSI Trading Examples

Larry Connors has over 30 years in the financial markets industry. Connors has been an active trader since His strategies and research are used by thousands of traders throughout the world. Previously, Mr. Alvarez was a senior developer of Microsoft Excel. For the past 12 years, Mr. Alvarez has been a professional market researcher. Alvarez has been at the forefront of stock market research, having developed a number of trading systems now used by investors and fund managers in the United States and internationally. Best on the Web by Forbe. Get directions.

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