As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22
As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22

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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