RSI Changing Direction and stop loss

This strategy generates buy signal when RSI is changing direction from negative to positive and the absolute value of RSI is less than "Lower RSI limit w" (typically 40). It generates sell signal when RSI is changing the direction from positive to negative and the absolute value of RSI is higher than "Upper RSI limit v" (typically 60). In addition when RSI is reaching a level "Upper RSI SELL limit" (typically 90-100) a sell signal is generated. To avoid losses in a downward trends a stop loss sell signal is included, it is triggered when the closing price falls down from the last buying price %p percent.

Formula

IF RSI(m)>v and changing direction
THEN GO SHORT
ELSE
IF RSI(m)<w and changing direction
THEN GO LONG
AND IF RSI(m)>v' THEN SELL
AND C(t)-BUY_PR<-BUY_PR*p/100 THEN SELL
where RSI is relative strength index;
and v > w; e.g. v' = 95,v = 80,w = 20,
C(t) - closing price; p - percentage loss
BUY_PR last buying price;

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