Example: Interpretation of a signal system consisting of RSI and MOM

Module "Advanced Technical Analysis"

You have a combination of the RSI and MOM trading systems on a daily basis. The combination should provide a signal if both trading systems provide a signal.

The RSI gives a long signal on 18.10. The MOM does not give a long signal on 18.10. and 19.10., but on 20.10., i.e. two trading days (periods) later.

If the RSI for long signals has a reverb of 0 or 1, the combination does not provide a signal. However, if the RSI for long signals has a reverb of at least 2, the RSI signal from October 18 extends two periods (trading days) further and forms a signal in combination with the MOM signal from October 20.

The reverb defined for the long signals by the MOM is irrelevant here, as the MOM signal occurs later than the RSI signal.

If a weight sum is only achieved due to lingering signals, the combination does not provide a signal. In the example above, this would mean that if the RSI and MOM for Long Hall values were 3, there would still be no combination signal on October 21, because none of the trading systems would provide a real signal on that day.