I have heard a lot of traders mention using RSI as one of their main indicators. I don't use it, but I would like to know if it is helpful. I have never read about RSI in any of the major trading books other than "Trading for a Living" and even there it was mentioned as one of many tech-analysis indicators. I know there are separate books especially for RSI, but I don't want to read them unless there really is any value to RSI. If anyone here who majorly uses RSI/MACD combo or just RSI would like to share their experience or the way they use it, then I would like to hear their remarks. thank you, Paul
RSI is my crack cocaine. I'm addicted. The high can be so wonderful, but more often than not, it's put me in counter trend trades that I have no business making.
I like to use RSI to track the continuance of the trend or break. For example I use a 21 day period of RSI, if a stock is in a good uptrend I watch to make sure the rsi stays above 50 it may dip below 50 temporarily but I watch to see if quickly resumes above the 50 point however if it starts to show resistance at 50 then it may be time to sell. Also using the qqq as a recent example, I notice how the qqq seems to top out at around 70 which it just hit and now is pointed down, so this tells me that the rsi of around 70 is a decent point to sell longs (or go short). I use the rsi in conjunction w/other indicators, candlesticks & market(gut) feel. Happy trading
It put you in how, if I may ask? What did the RSI do or what was the position it was in that suggested you enter what ended up being the wrong place? jd
Thank you for a good response. I was wondering if there are any divergence trades you take, or that could be taken using RSI. Like MACD or CCI.
I use RSI thusly: Bund makes a new high. RSI makes a new high. Bund makes a new high RSI does not is an indicator of a possible reversal.