|
Triplepack,
welcome to the RSI admirers group.
Yes, I use the RSI as a trend indicator, with 40 and 60 as support and resistance values. While the RSI is below 60, and has moved below 40 recently, the trend is down. When the RSI is above 40 and has moved above 60 recently, the trend is up. ANything else, we are in a sideways market. To me, a move above 60 is bullish, below 40 is bearish. These are general guidelines.
I have looked at hidden divergences. Cardwell talks about divergences with a gap of 4 to 6 bars. I have rarely found such divergences, and when I did, they really provided very shallow moves. Hidden divergences with a large number of bars seperating them have given better indications.
To me, the use of RSI as a trend method + chart patterns on the rsi is the useful part of the indicator.
|