T A : RELATIVE STRENGHT OF INDEX (R S I)

one of the great oscillators available for trading markets.some tips to use it:

(PLEASE REMBER THE BEST INDICATOR IS UR MIND,CONTROL THAT )

1. I have found that using 20-80 parameter as oversold/overbought and 50 as the average range works well from INTRA TO MONTHLY CHARTS.
2. please remember that cross of 20 or 80 does not mean that the market can be bought or shorted , but just that it moves now into the respective zones where care should be taken of the running trade.
3. the reverse trade only taken when the rsi crosses 80 downwards/or rises from 20 upwards.
4. crossover of rsi/average line closely monitered and wait for cross of 20/80 levels for trade.
5. when RSI is losing strenght despite of the price going higher /lower it shows that negative/positive divergence has started and the present positions should be liquidated & contrarian direction can be initiated when other signels also confirm.
6. cross of RSI over / below 50 line means that the trend is picking strenght , more positions shoould be added at this level as the direction has been set.
7. it can remain overbought /oversold for long in a heavy trending market so very low/high rsi levels does not signel a contranian trade.
8. its a slow indicator and best parameter is 14-1(60 mins or above), for intra day i use 5-3 for volatile markets in 10 mins time frame.