As of 01/27/2023
  Indus: 33,978 +28.67 +0.1%  
  Trans: 14,483 +191.14 +1.3%  
  Utils: 968 +1.08 +0.1%  
  Nasdaq: 11,622 +109.30 +0.9%  
  S&P 500: 4,071 +10.13 +0.2%  
YTD
 +2.5%  
 +8.1%  
 +0.0%  
 +11.0%  
 +6.0%  
  Targets    Overview: 01/13/2023  
  Up arrow34,900 or 33,150 by 02/01/2023
  Up arrow15,100 or 13,500 by 02/01/2023
  Up arrow1,040 or 950 by 02/01/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,100 or 3,800 by 02/01/2023
As of 01/27/2023
  Indus: 33,978 +28.67 +0.1%  
  Trans: 14,483 +191.14 +1.3%  
  Utils: 968 +1.08 +0.1%  
  Nasdaq: 11,622 +109.30 +0.9%  
  S&P 500: 4,071 +10.13 +0.2%  
YTD
 +2.5%  
 +8.1%  
 +0.0%  
 +11.0%  
 +6.0%  
  Targets    Overview: 01/13/2023  
  Up arrow34,900 or 33,150 by 02/01/2023
  Up arrow15,100 or 13,500 by 02/01/2023
  Up arrow1,040 or 950 by 02/01/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,100 or 3,800 by 02/01/2023

Bulkowski's RSI Trading Setups

The following page is only a faction of the complete analysis of the RSI indicator. Check here to download a compressed Word document that includes pictures and in-depth analysis.

 

Introduction
Trading: Overbought and Oversold Signals
Trading: Divergence
See Also

 

RSI Trading Setups: Introduction

The Wilder relative strength index (RSI) is a price momentum indicator that is useful for intraday trading. Values above 70 mean price is nearing a top or correction of the uptrend. Values below 30 mean price is nearing a bottom or retrace of the decline. The RSI's primary value is calling the turning points in a trading range market (between support and resistance).

As an overbought, oversold indicator, it works 75% of the time, but it says nothing about how far price will travel. As a divergence indicator, where the indicator diverges from price and points to a new trend, it proved accurate and timely, working between 76% and 82% of the time.

Here are some trading rules that should help with profitability.

Top of page

RSI Trading: Overbought and Oversold Signals

Here are the trading rules for using RSI as an overbought or oversold indicator. These assume a 14-period look back on the RSI and a 10-day intraday price chart.

Top of page

RSI Trading: Divergence

Looking at your charts, it may be unclear whether you look for divergence along the price peaks or valleys. Here's a system that works.

Here are the rules for trading on bullish divergence.

Here are the bearish divergence trading rules. They are similar to the bullish divergence rules.

-- Thomas Bulkowski

Top of page

See Also

 

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