The RSI revisited

[Triplepack]

The Dow charts
Errr they were a little bit too big here they are again a

Cheers

Triplepack

[Triplepack]

Dow Daily attached

[chartist2004]

Mr Cardwell
It's a pleasure to actually chat with you.

I have the two books by Hayden & Brown. I think both books clearly state that the RSI methods discussed are created by you.

In my mind at least I acknowledge you as the developer of these very fine trading techniques with the RSI. The books were only a medium to convey your ideas.

I am sorry to note that there are issues of copyright etc involved. I hope this issue is solved to your satisfaction.

Your application of range rules to the RSI is excellent. This changes the RSI into a trend indicator with a lot of forewarning on trend changes.

Example: When the RSI rallies above 60 I look for dips to go long. Subsequently if the RSI makes at least 2 peaks below 60 I assume a trend change is possible look for a trading range on the price chart trade a breakout of that range in either direction.

I can locate negative/positive reversals on a chart but I have not been able to formulate rules to trade them.

I hope you will consider writing a book soon enough.

Best Regards.

[Pluteo]

Hi
I use RSI. using a 14 period this chart is LME copper weekly The RSI can not breakout the trend lines I Sell short on 10/29/04 is it correct?

Rowe

[Pluteo]

Hi
If tonight Lme price stay or above 2915 Rsi will broke the trend line so have to start the buy stop order waiting buy signal
come.

R

[Triplepack]

Hi Pluteo


the chart I would read the following with ref to RSI.
you may have a positive reversal either side of the head in the h+s this could indicate a target of above '5' on your chart.
the RSI has turned giving you the signal here.

If this fails I would be looking for the support on the RSI at around 50 to break. I would expect it to then start a downtrend short term.

Maybe on a lower time scale you may find some negative reversals this recent high to show just that which may be tradeable. The downside scenario on this time scale in my view is
also being intimated by the negative divergence between the two highs on price rsi.
So that depending on your time scale for trading there are
a few triggers to watch.

Cheers

Triplepack

[Pluteo]

Hi Triplepack
Yes like u say I do long at at 9/3 I calculate the target is 2866 at Red'T' the close price is at 2910 9/24 (can not reach the '5' at '5' the close price is 3145maybe too high) at that time the RSI(60.79) still under the Long Ema below 65 so I do long covering but big confuse:after next two clesU can see big rally huge drop.like the chart show.at 10/29 I start to short yesterday cover itdue to the rsi break the trend line(orange line'3s') waiting the buy signal.

luck

R

[Pluteo]

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