[chartist2004]

I read a thread on the use of RSI that was closed.
The RSI is a versatile indicator, very close to price and therefore less prone to lag.

Traders interested in discussing the use of this tool should participate in the discussion. There is no danger of anybody stealing ideas. The Turtle trading rules are now common knowledge, but how many of us have actually used them ?

So here is a start:

--> When the RSI moves into what is considered 'overbought' zone, i.e. above 70, chances are that a new uptrend may just be beginning. A dip in the RSI should be used to go long.

--> When the RSI moves into what is considered 'oversold' zone, i.e. below 30, chances are that a new downtrend may just be beginning. A rally in the RSI should be used to go short.

I never short when the RSI moves into 'overbought', and do not buy when the RSI moves into 'oversold'.

These two simple rules ensure that I do not stand in front of a running train / trend.