As of 12/07/2022
  Indus: 33,598 +1.58 +0.0%  
  Trans: 13,768 -130.21 -0.9%  
  Utils: 973 -6.18 -0.6%  
  Nasdaq: 10,959 -56.34 -0.5%  
  S&P 500: 3,934 -7.34 -0.2%  
YTD
-7.5%  
-16.4%  
-0.8%  
-30.0%  
-17.5%  
  Targets    Overview: 12/01/2022  
  Up arrow35,500 or 32,800 by 12/15/2022
  Down arrow13,400 or 14,500 by 12/15/2022
  Up arrow1,000 or 925 by 12/15/2022
  Up arrow12,000 or 10,600 by 12/15/2022
  Up arrow4,250 or 3,850 by 12/15/2022
CPI (updated daily): Arrows on 12/5/22
As of 12/07/2022
  Indus: 33,598 +1.58 +0.0%  
  Trans: 13,768 -130.21 -0.9%  
  Utils: 973 -6.18 -0.6%  
  Nasdaq: 10,959 -56.34 -0.5%  
  S&P 500: 3,934 -7.34 -0.2%  
YTD
-7.5%  
-16.4%  
-0.8%  
-30.0%  
-17.5%  
  Targets    Overview: 12/01/2022  
  Up arrow35,500 or 32,800 by 12/15/2022
  Down arrow13,400 or 14,500 by 12/15/2022
  Up arrow1,000 or 925 by 12/15/2022
  Up arrow12,000 or 10,600 by 12/15/2022
  Up arrow4,250 or 3,850 by 12/15/2022
CPI (updated daily): Arrows on 12/5/22

Bulkowski's RSI Trading Setups

The following page is only a faction of the complete analysis of the RSI indicator. Check here to download a compressed Word document that includes pictures and in-depth analysis.

 

Introduction
Trading: Overbought and Oversold Signals
Trading: Divergence
See Also

 

RSI Trading Setups: Introduction

The Wilder relative strength index (RSI) is a price momentum indicator that is useful for intraday trading. Values above 70 mean price is nearing a top or correction of the uptrend. Values below 30 mean price is nearing a bottom or retrace of the decline. The RSI's primary value is calling the turning points in a trading range market (between support and resistance).

As an overbought, oversold indicator, it works 75% of the time, but it says nothing about how far price will travel. As a divergence indicator, where the indicator diverges from price and points to a new trend, it proved accurate and timely, working between 76% and 82% of the time.

Here are some trading rules that should help with profitability.

Top of page

RSI Trading: Overbought and Oversold Signals

Here are the trading rules for using RSI as an overbought or oversold indicator. These assume a 14-period look back on the RSI and a 10-day intraday price chart.

Top of page

RSI Trading: Divergence

Looking at your charts, it may be unclear whether you look for divergence along the price peaks or valleys. Here's a system that works.

Here are the rules for trading on bullish divergence.

Here are the bearish divergence trading rules. They are similar to the bullish divergence rules.

-- Thomas Bulkowski

Top of page

See Also

 

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