Thursday, February 25, 2010

Using RSI To Trade Strong Trends In Stocks

I love using the RSI. I think it's a very under rated indicator. See this chart for how RSI can be used by swing traders to get on board a strong trend on orderly pullbacks to test the 20 day Moving Averages after RSI tags 70. Once RSI tags 70, this indicates extreme strength and hence high demand for a particular stock. So controlled or orderly pullbacks to the 20 day moving averages are likely to be reversal zones.

Happy trading!!


Anonymous said...

What is the RSI exactly?

Stewie said...

here you go!!

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