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, and 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. and using a 14 period, this chart is LME copper weekly, and The RSI can not breakout the trend lines , And 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, and waiting buy signal
come.

R

[Triplepack]

Hi Pluteo,


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

luck

R

[Pluteo]

P/R LIKE CHART SHOW