Answer to Ahmet about the RsiHisto entry

On the original screenshot, the obvious question is

“Which bar is the RSI Histo confirmation — A or B?”

With the settings that were actually used at the time, the honest answer is

Neither A nor B is a valid RSI Histo reversal confirmation on that timeframe.

Why neither A nor B qualifies (with period = 14)

• Bar A
  • It is the first bar that crosses above the zero line and turns green.
  • That tells you momentum has flipped to the long side, but by Darren’s rules it is not enough for an RSI Histo reversal entry.
  • For a proper reversal, you don’t just want a zero-line cross; you want a clear break of the ±20 band after a bust–break–close in price.
• Bar B
  • It lines up nicely with the breakout candle in price.
  • Visually it feels like a “confirmation bar”, but the histogram is still below +20.
  • So it also fails the strict RSI Histo reversal criteria. It’s momentum in the right direction, but not the official trigger.

On this setting (RSI Histo period = 14), you are forced to say

“On this timeframe there is no valid RSI Histo reversal signal according to the +20 rule. The only thing we can read is that the momentum has flipped long.”

That’s exactly why Darren keeps insisting on the combination of price structure + momentum rules, not just “it looks strong”.

The configuration mistake: 14 vs 8

Now the important correction

It turns out this would have been a perfect momentum break of the 20 level, but the RsiHisto setting was wrong. It was set to 14; the correct setting is 8. An 8-period RsiHisto matches the 3CRs almost perfectly.

What changes when you use period 8?

• With 14, the histogram is too slow relative to a 3-candle reversal.
  • Many good 3CRs won’t show a clean break of +20 at the right spot.
  • That makes you think “there is no RSI confirmation” even when the market actually delivered strong momentum.
• With 8, the histogram tracks the 3-candle swing much more tightly.
  • The same move that prints the 3CR at the level now also drives the RSI Histo up through zero and then through +20.
  • On this example, if the period had been set correctly to 8, it would have shown a textbook momentum break of the +20 level right where you want it.

So conceptually nothing about the method changes; only the configuration was wrong. The example itself is good — the indicator setting was the problem.

Clean rule for RSI Histo in this context

• RsiHisto period: 8
  This is the setting that aligns with the 3CR swing.
• Valid long-side reversal confirmation on the execution timeframe:
  1. Price forms a proper 3CR (or bust–break–close) at a meaningful level.
  2. RSI Histo:
     • has first “busted” away in the prior move
     • then turns and crosses above zero
     • and then breaks above +20 before or by the time you execute the trade.

If those conditions are not met on that timeframe

• Either there is no valid RSI Histo reversal signal there
• Or the signal is sitting on a lower timeframe, and the higher timeframe you’re looking at is just a validation picture for that lower-TF entry.

The key takeaway from this chart is simple

The method was fine, the trade idea was fine, the level and 3CR were fine.
The only thing that broke was the RSI Histo period. Set it to 8, and the 20-level momentum confirmation snaps into place exactly where it should.