classic example of what i had written abt. RSI divergence , it appeared yesterday..notice in the chart that when we were at 4316..RSI was way down below 10 and yesterday when we went below previous low..of 4316 to 4248..the RSI was around 20 and turning there by giving a signel from thursday that this selling will stop soon and it is giving POSITIVE DIVERGENCE. so cut your shorts today or next day and go long.. and the market just did that recovered all loss of the day and went on to close at high point of the day. one can also notice that RSI just touched the 50 mark( from low of 4316) and again turned down wards and the fall was very severe as below above 50 levels the trend sets in...cheers..
Saturday, August 23, 2008
T A : R S I LESSON FOLLOW UP
classic example of what i had written abt. RSI divergence , it appeared yesterday..notice in the chart that when we were at 4316..RSI was way down below 10 and yesterday when we went below previous low..of 4316 to 4248..the RSI was around 20 and turning there by giving a signel from thursday that this selling will stop soon and it is giving POSITIVE DIVERGENCE. so cut your shorts today or next day and go long.. and the market just did that recovered all loss of the day and went on to close at high point of the day. one can also notice that RSI just touched the 50 mark( from low of 4316) and again turned down wards and the fall was very severe as below above 50 levels the trend sets in...cheers..
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