Today we will talk about another technical indicator, the Relative Strength Index (RSI). The RSI is considered to be a leading indicator similar to Stochastics and Williams %R, and generally, precedes price movement in the underlying. RSI is a popular indicator used by many traders to identify potential buy and sell signals, confirming … [Read more...] about Technical Indicators 101: Relative Strength Index (RSI)
This week's article will be an overview of what is a broad subject; technical indicators. Subsequent articles will cover some of the more popular indicators in detail, but we will cover the basics to start. Many traders use technical indicators to some degree to help them in their market analysis and trade management. Technical … [Read more...] about Technical Indicators 101 – An Overview
Dr. Terry Allen, from Terry's Tips, published a very interesting 100-week back test of the RSI to see if it predicts market direction for the following week.Terry used the following RSI numbers for 2-day, 3-day and 5-day RSI readings:Very overbought – an RSI reading of greater than or equal to 85.0 Overbought – greater than or equal to … [Read more...] about Does RSI Predict Market Direction the Following Week?