Traders Laboratory - View Single Post - Is the RSI indicator any good?
View Single Post
  #6 (permalink)  
Old 03-12-2008, 11:00 PM
MC's Avatar
MC MC is offline
MC is half man, half market!

Trader Specs
 
Join Date: Sep 2007
Location: NY
Posts: 472
Thanks: 107
Thanked 35 Times in 26 Posts
Send a message via AIM to MC
Re: Is the RSI indicator any good?

Every indicator is good if you have defined an edge with it and execute signals without imparting your emotional wisdom.

That being said, as already mentioned the main purpose most traders use RSI for is divergence at peaks and bottoms or at key levels. I do the same thing on my setups.

Divergence at key levels gives you a high probability trade and if you back it with certain volume traits as another filter your odds are even higher.

Good trading.

__________________
Price is simply the 2 way auctions method of advertisement. Volume measures the willingness of market participants to transact at the advertised price (AKA perceived value).
Reply With Quote
The Following User Says Thank You to MC For This Useful Post:
alwaysLearning (06-11-2008)