Traders Toolbox: Relative Strength Index Revisited...

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"MarketClub is known for our “Trade Triangle” technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the “Trade Triangles” to further confirm trends.Developed by Welles Wilder, the Relative Strength Index (RSI) addresses the two major flaws of momentum – the need to have a constant band against which to compare price movement and the ability to smooth the ebb and flow of price movement.

Sharp up or down movement 10 days ago (in the case of a 10-day momentum line) can cause pronounced shifts in the momentum line even if the current prices are relatively stable, giving false signals. Also, different commodities may have different “overbought” and “oversold” levels. RSI corrects these concerns by smoothing the movement and by creating a constant range from 0 to 100...."

Revisit the Trader's Toolbox Post: "Relative Strength Index" here.

3 thoughts on “Traders Toolbox: Relative Strength Index Revisited...

  1. The RSI alsho shown :
    Bearish divergence, upon the price aug to mid sep. Spotting that, we could sell it as soon as overbaught signal come up.
    As you said using 10MVA or 24MVA watever as filter, one could also spot the price up and down by using RSI as entry..passing 50 line.
    Just my 2cents

  2. Hi Adam H.,
    I am using your trade triangle since 1 month, initially I was very excited, but now I don't how to make decision regarding what to buy, when etc. I understand you can't advise, but if you shed some light on what should be done at a given point from short term horizon people as far as trading is concern. If you have video in detail about how person can react to get best out of system. I know I am not talking specifically, but try to shed light about using trade triangle in detail by video.
    Also, with my little experience, I like to let you know what could help the traders(to improve product) if possible:
    1. In recent trade triangle, please add capability to narrowdown by "volume, Market, Price criteria" for avoiding lots of trial and error.
    2. In the chart with triangles visibility of score along with those 3 button will enhance your product better.
    3. It will be also a good Idea that you share your view(daily on home page) on how the market sectors are doing and what can be expected going forward consi dering current environment. VectorVest.com does good job on their views and strategies.
    I have mention about these 3 needs of customer to Mellissa, and Susan and Jeremy. I thought I let you know too.
    I have lots of questions related to triangle but I don't know how to put in writing. Apparently I like your system, but it's hard to make decision in present moment for future using your system. You being highly experienced I want to know how do you make decisions.
    Sorry to write unrelated to this blog, but I am a fan of Marketclub and I think I get lot more out of it if know how to use it from your decades of experience.
    Thank You
    Hitesh
    Thank You,
    Hitesh

  3. I have been watching XMDC, OTC stock. They recently announced a merger with a korean medical device company. Anyone have any opinions or reco's concerning this stock? Stock currently trading at .035.

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