Hi
The lme copper weekly from the top '5' 3145 to 2722 , and retrac, price close above 0.618 retracement level,according J.H say, the bear is week.so I think the market is bulls,but one question is, as you see the RSI, SHE CANNOT BREAK THE LONG MA1(red one), AND retrac, can I think ,this is a short signal.
11/19, rsi break the long ema,so do long,and little worry the orange trend line. maybe the price will trace,if rsi try to
break the orange line and failure .any suggestion?
I think people quite often use 14-period RSI's? I tend to use 9-period or 10-period versions.
I use them for two things only:-
1. If I'm about to enter a long trade and the RSI has been down below 30-35 and is moving up again (and vice-versa - short trade, above 65 - 70 and reversing), I take that as good sign and it might even influence my initial position-sizing slightly;
2. I find divergences in the RSI helpful: if I can easily see lower highs (or higher lows) and/or different trendlines on the RSI-chart from the ones on the price-chart, I get ready mentally to close a trade quickly if it looks like reversing.
Apart from this, I find RSI rather over-rated and over-interpreted, but I'm gradually starting to feel that way about most "indicators", to be honest.
I think you're right about indicators being overrated. I strongly
feel it's the tactics you take (and don't take) once in trades that
make all the difference.
Licensed Brokers
rsi--- my favour
Linear Mode
