RSS-Stochastik [afterworktrading]

Hi all,

this is the first script from the series "afterworktrading". The goal is to develop and provide tools for traders with a fulltime job or little time for trading/analyzing charts.

Over time some of the scripts will also be linked to complete trading systems.

Let's start with my favourite one, the "RSS-Stochastik" with alert function.
The RSS-concept (Relative Spread Strength, developed by Ian Copsey) is based on the variance between a "short" and a "long" moving averages (or "slow" and "fast"), here between two EMA.
This variance is calculated and plotted in a RSI-diagram to show "overbought" and "oversold" conditions, helping to identify an ideal entry setup for trend continuation or catching a possible reversal.

Compared to the conventional RSI etc., possible reversal or trend continuation areas are often better represented in terms of quality, as an example see the Amazon-Chart.



The EMA-values, limit value thresholds and background colors can be set in the script. As a special feature, alarms can be set to be notified when a value has reached the extreme range. This reduces the screen time to the minimum.

In my personal trading, this indicator forms the basis for almost all trades, but is not a pure signal indicator on its own.
However, the informative value can be further improved if volume or support/resistance zones etc. are linked to the RSS, see example NASDAQ future with support zone price or 200 EMA.



Example for a possible RSS-Trade-Setup:

- choose an asset with a strong trend
- set alerts for crossing the oversold or overbought condition in direction of the trend
- in case of an alert check possible support/resistance areas on the current chart level (EMA, price zones, volume zones, anchored VWAP etc.)
- trade in the direction of the trend using your preferred entry setup

In my opinion, the system can be used very well, especially in trend phases, in order to obtain optimal entries.

Does it works also on lower timeframes?

Yes, it might work on every timeframe with a strong trend of high quality. Please see attached a 5m-Chart of GPBUSD-pair, notice the signal quality in direction of the trend.



Like every trading system this is not the "holy grail setup" and you will have losing trades. But handling this indicator with care you can have better entries especially in trend direction with less screen time due to the alert function.

Good luck with it! Further indicators will be published in the coming months, some will also be based on the RSS system.

As always: no liability for losing trades, no investment advice etc. Observe the risk limit for every trade!