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  • How to Trade Trends with RSI

    From dailyfx.com

    In our last article, we looked at one of the more popular indicators in the field of Technical Analysis: RSI, or The Relative Strength Index. As we investigated, RSI can help traders see when price may be overbought or oversold in the marketplace; or to put it very simply – when price may have moved up to high or down too low. We then went into one of the primary pit-falls of the indicator; and that lies with the fact that markets can continue to trend higher or lower for an extended period of time; and to traders entering trades with RSI (which is innately counter-trend), losses could mount significantly. Because ... (full story)

better article is "how to trade with draghi"
oh Draghi.. LOL
Quoting Pip_tracker
better article is "how to trade with draghi"
LOL
its true..
There is no indicator that can handle Market's manipulation which is now in place...
Two points: First, the RSI resonates market noise too much - but is a very effective filter so to eliminate that defect (which can make a lot of difference) I use the RSX. Second, to friends trading the Euro up - what we see now has caused us to adjust our TP to 1.25. This should happen rapidly too probably before NY. Best of the trades to all.

I see, I tell, we watch.
RSI was never created to show "overbought/oversold" conditions. It's primary purpose is to measure divergence. Also like all oscillators, it oscillates btw 100 and 0 no matter the trend, thus making it a range indicator pinpointing the divergence with the price action. Very misleading article.
very good article, RSI is the one of the popular indicator, i just test RSI 2 on daily tf crossing the 50 level bullish RSI2 > 50 > Bearish RSI2 below the 50, scalping on the smaller TF by using the signal RSI from higher TF then you can take the good result for your trade..... cheer
Has some one seen a cumulative MT4 RSI, I've tried to find Larry Connors RSI for MT4 but only downloaded not working or are fake indicators. Maybe someone know where I can find it or program this indicator. Comments to discussion above, this indicator is for trend trading and it indicate the end of pullbacks and throwbacks. This is counter trends moves which are short lived, and this indicator show when the counter trend is exhausted and the longer term trend resumes. And the for probity exploration he using 200 sma as a trend indicator.
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  • Story Stats
  • Posted: Aug 14, 2012 3:52am
  • Submitted by:
     Newsstand
    Category: Educational News
    Comments: 8  /  Views: 4,961