The RSI revisited

[Pluteo]

Hi
The lme copper weekly the top '5' 3145 to 2722 retrac price close above 0.618 retracement levelaccording J.H say the bear is week.so I think the market is bullsbut one question is as you see the RSI SHE CANNOT BREAK THE LONG MA1(red one) retrac can I think this is a short signal.

tks

pluteo

[Pluteo]

11/19 rsi break the long emaso do long little worry the orange trend line. maybe the price will traceif rsi try to
break the orange line failure .any suggestion?


pluteo

[tim_nn]

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 the RSI has been down below 30-35 is moving up again ( vice-versa - short trade above 65 - 70 reversing) I take that as good sign 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) /or different trendlines on the RSI-chart the on the price-chart I get ready mentally to close a trade quickly if it looks like reversing.

Apart this I find RSI rather over-rated over-interpreted but I'm gradually starting to feel that way about most "indicators" to be ht.

[autofx]

tim_nn

I think you're right about indicators being overrated. I strongly
feel it's the tactics you take ( don't take) once in trades that
make all the difference.

-Bob