Post
Topic
Board Project Development
Re: Haasonline Simple Trade Bot For BTCe and Bitstamp[Main topic]
by
DonBit
on 13/11/2013, 21:19:42 UTC
So who's willing to clue me in on how to deal with the current crazy spikes?


MACD crossover emulates you an indication of fast and slow EMAs crossover which are essentially mid-long term indicator of uptrend or downtred (fast EMA crossing slow EMA up is uptrend and the opposite is downtrend). RSI provides you a shorter term indication of overbought or oversold prices.

Theorically you can mix both indicators to deal with spikes.

Whenever MACD is crossed over for uptrend and RSI is oversold in a down spike it would be a good entry point if you are currently sold.
If MACD is crossed over for downtred and RSI is oversold, it would skip the buy order, protecting you of a bull trap spike.

Whenver MACD is crossed over for downtrend and RSI is overbought in a up spike it would be a nice exit point if you are bought
MACD crossed over for uptrend and RSI overbought in this up spike would protect you from selling in a bear trap spike.

Is is a double condition setup that works nice.
The hard part is achieving the optimal values for the indicators setups after several benchmarkings...