The RSI can be an essential tool in a traders arsenal when used correctly. The problem is that there are a million trading styles and there is no one, single way to use an indicator. So what works best for you? In our quest to bring you tips and tricks from some of the best traders of all facets of trading we have invited Mark Hodge, Head Trading Coach at Rockwell Trading as a guest today. Mark is going to share how he uses the RSI, and if you have a similar trading style it could have a profound impact on your trading.
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RSI is an indicator that is often used to identify overbought and oversold conditions when trading. Unfortunately, most traders use this indicator too literally, and miss out on some of the biggest trends. In this article I will introduce how RSI is typically used, and share a different way to use this indicator that could have a significant impact on your trading.
The Relative Strength Index, or RSI, is a popular indicator developed by Welles Wilder, and was first introduced in the book New Concepts in Technical Trading Systems. RSI is a momentum indicator used to measure changes between higher and lower closing prices. Continue reading "RSI – Overbought, Oversold, or Overplayed?"
