Bear markets have a hard time rallying above RSI 60 See current live QQQ action in real time on 5-min., RSI 50 repelled Qs. If Q can get past 50 and then 60 its time to TP? hehehehehehe Enjoy and try not to take this sh*t too literally
%% WE know MACD could work, since it has moving averages in it. I never noticed your RSI ''60'' bear indicator, '' , but worked reasonably well in 2000-2001, 2002 bear, monthly charts also. Your discretion may have helped avoided a trainwreck in 2009; the mostly uptrend but below RSI 60+ 10 months out of 12 were bull market /SPY. So you could have ignored RSI + used MACD to make a 2009 fortune
RSI has nuances that I have not yet stumbled upon. These things come slowly over time and almost always serendipitously. Its not a just an overbought/oversold indicator, it has depth. The question is, "is one Man enough to explore and dig deep and make it his own?" There is tremendous pleasure and treasure in going where no Man wants to go for whatever reason be it too tough, or fraught with peril or just too much hard work and loads of time. But the reward is there waiting in gold pots to be had by the persistent Man who blasts thru' The 60/40 RSI is nice but it needs work and I'm working on it to see how close I can get it to 70/30 without touching either level to give me more room. Its a work in progrress. One thing is for sure: With the combo Macd and RSI I can flog any dumbass goldman sachs clown!!!
%% RSI gives so many false signals in a trending market\ if you can find a use for it\ more power to you I dont know what the RSI says this afternoon\ but SPY + QQQ= going down again after lunch. NOT a prediction......
%% Interesting that 60 RSI number seems to work much better on QQQ than some other tighter ETF trenders, so it could keep working after public note, on qqq ; since with plenty of other non QQQ stuff, some may have gotten creamed shorting @ 60.... Antique Dealers proved one persons trash = another's treasure.
True!! there are other ways to use it in a trending market, defo not the conventional way see below with application to just a small trend for example the entire bear rally from June 16 to Aug 19. A reasonably decent short-term trend. See my RSI trendline in lower panel. flogs the Price trendline, flogs the Macd and gets you out one full day before the red bars crash Do the same for long long trends too but switch to weekly and go across the RSI window and you'll see how these dumpphucks at ET are so out there you could put a pot of gold right under their nose and they would not see it. After dealing with the likes of Overnight and theMickey and Wide Tailz and now the latest one named vanzandt, I have resigned myself to the fact I am doing my internship in a graveyard. So it does not bother me no more. My expectations are super low. This is how ET looks to me to be after 40 days of being here ...........
%% ONE of the funniest things i ever heard on MACD; an eliteTrader asked once ''anyone else seeing momentum slowing on the MACD?? another elite trader said '' NO ,its an indicator error of yours!!'' LOL
RSI in a Trending market another example and there are literally hundrreds of examples. It always works To keep it simple let's go weekly timeframe. It works same-o on daily but you have to use shorter waves so you will take profit a few times during a long daily trend Here's RSI trendline used on Dow Jones during the financial crisis year 2007 to March 2009. RSI gave the easier no-brainer trenline with numerous contact points. Price aka Dow Jones required 3 trendlines. RSI trashed the living daylights out of ever mother's son Indicator out there But nobody at ET would ever dream of doing this type of work. That's why they will alway sbe HERD members = zero individuality. It takes an individual to do this type of work, a group cannot
And don't forget you have the additional sub-indicator within RSI, namely the Divergence. Look at the size of that divergence! It guaranteed the entry would be 100% spot on. and it was RSI trendline breakout defeated Price trendline breakout by 1 full week. In any event even if one uses pure price action only, think about how valuable the confirmation of breakout would be for you when you have millions of dollars on the line. RSI does what it does which is to I N D I C A T E confirmation and what a job it does!!! Notice additionally that your entry via RSI into Long Dow Jones would be above the RSI 30 level. this takes the guarantee into a heavenly zone of near certainty the market will honor your entry 100%