Review of "Top 3 Ways To Use The RSI Indicator (Not What You Think)"

 


I am not sure what specifically the "3 ways" are, but here are some points.

1.  Use 80 and 20 as RSI thresholds

2.  Confirm breaking of threshold with different time intervals (e.g., hourly to daily).

3.  Look for a bar break (or "double bar break") where "a single candle takes out the low of the prior candle"

4.  As confirmation, see that RSI goes back below threshold (but not necessary if there are breaks).

5.  Take profit when RSI reverts to the mean.

6.  Take profit when price reverts to the mean.

Then there is some discussion about pullback trades, how some stocks hover between 50 and 80 in the RSI bands.  I did not understand this section.


Random notes

  • Mention of Thinkorswim's Market View to screen via RSI.

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