RSI is almost perfect indicator.

Ion Ex: RSI made top on 10 June and stock closed at 2178.9.There was a divergence on the chart as RSI kept making LH but price kept up.But in yesterday's correction, price exactly visited the closing price of RSI top and cleared the divergence.

More from Mayank Narula

Bull Market Rotation: We all have heard about bull market rotation over last few months.

Let's see how it looks. Below is the comparative chart of IT (candlestick chart) vs Metals (blue line chart). Let's see how it has moved from March'20 bottom till now.

(1/4)

1) March'20 to July'20: Both going up but IT clearly outperforming metals during the period.

2) July to Aug: IT consolidating, metals outperforming.

3) Aug to Oct: IT moving up, metals under retracement.

(2/4)

4) Oct to Nov: Tables turning again in favour of metals.

5) Nov to Jan: Both moving up, but IT outperforming.

6) Jan to May: Metals outperforming IT after some initial retracement in first few weeks of Jan. Since last week of Jan to May, it's been all metals.

(3/4)

7) May to July: IT again leading, with metals consolidating.

Let's see how it turns from here.

(4/4)

Mayank Narula
@Mayank_Narula1

#INFY

Gap down on huge volumes and then bearish engulfing on huge volumes.

Things will only get worse for IT stocks from here onwards.

Mayank Narula
@Mayank_Narula1

Of all the bullish combinations that can work on Nifty, Bank Nifty+ Reliance combination is the most potent one.

But then what else will take Nifty to 35000+ in 2-3 years.

Mayank Narula
@Mayank_Narula1

Carnage in broader market is something of a characteristic of the final leg of correction.

Broader market bleeds more than index to scare off the retail from smaller stocks.

Can go on for few weeks.

Mayank Narula
@Mayank_Narula1

#Ethereum

CMP: 1006

Will be a buyer under 500

#Ethereum

Below Jan'18 top.

Next target is 840 and then 366.

CMP: 1217 pic.twitter.com/jsRimP0QUb
— Mayank Narula (@Mayank_Narula1) June 13, 2022

More from Rsi

Sandesh Bhat
@blazingbhat

Hats off to @jhunjhunwala_b and thanks to @elearnmarkets for hosting Bharat ji.

Thought provoking, cant learn this sort of applications so quickly from books.

Learnt new ways of looking at RSI 👍

RSI is one of the most versatile indicators in the stock market.
View Webinar: https://t.co/Mlov60NPY2

Join @jhunjhunwala_b and learn how to pick multibagger stocks based on some RSI range rules

Use Code WEB20 for 20% OFF.#rsi #stockmarketindia #stocks #profits pic.twitter.com/eVu3SlsxaJ
— elearnmarkets (@elearnmarkets) July 3, 2021

Nishant Kumar
@nishkumar1977

A Tattoo has been posting selective screenshots of my Tweets to this followers to showcase how I do not know how to use RSI.

While he runs his shop showing other people down, here are the basics for the wise:

1) RSI above 70 gets into overbought zone but it's the crossover from

the 60s to the 70s that gives the maximum thrust.

2) Daily RSI gives a good thrust but that can stay short-lived. It's the weekly/monthly RSI crossover into the 70s that provides a more sustained thrust

3) During the weekly crossover, daily RSI might reach astronomical levels

Many a times into higher 80s or early 90s. So in a shorter time frame this daily RSI would try to correct but since the weekly RSI is getting stronger, these dips would be shallow and short-lived and price would try to move higher again.

You would have seen such a behaviour in Wockhardt. Price hit a 20% and then went another 10-12% higher which heated the daily RSI and the price corrected sharply on day 3.

4) But because the weekly RSI was getting a crossover into the 70s, price reversed quickly to hit 10% more.

5) Now when this weekly RSI becomes heated, that is when the price might make a medium term top. Again, if the monthly RSI too gets a crossover into the 70s then the stock can continue to perform well for a few months till the monthly RSI gets heated.

Dr.Jignesh Shah
@bankniftydoctor

I am following very simple trading plan based mainly on RSI and ADX.
Now whenever we wants to initiate trade then firstly we have to decide BIAS for direction.

BIAS based on RSI as follows-
RSI Above 55-Long.
RSI below 45-short.
RSI between 45-55—- neutral.
Continue

Momentum study guides us for exposure in our long or short trade.

Momentum based on RSI is as follows-
RSI— 55-60~mild long(25%),
RSI— 60-65~moderate long(50%)
RSI— 65-70~strong long (75%)
RSI Above 70~ very strong long (100%)

Momentum based on RSI for short trades is as follows-
RSI— 40-45~mild short (25%),
RSI— 35-40~moderate short (50%)
RSI— 30-35~strong short (75%)
RSI below 30~very strong short (100%).
Please note, one need to check RSI at closing of the day for continuation of trade and exposure.

Now finally trend confirmation.... ADX is very simple and effective tool to judge the underlying is trending or not...whenever adx is rising it gives confirmation of trend formation and when adx crosses 25, it suggests strong trend formation.

When adx is rising and bias is on long side then trend is uptrend.
Similarly with rising adx and short bias gives confirmation of downtrend.

CactusTrade
@CactusTrade

Stumbled across this Amazing thread by @nishkumar1977 on RSI Momentum Trading Strategy.

Have put it in pictorial form.

Read the whole thread to understand better.

Retweet to help everyone understand better. https://t.co/vPYoGgQEqm

A Tattoo has been posting selective screenshots of my Tweets to this followers to showcase how I do not know how to use RSI.

While he runs his shop showing other people down, here are the basics for the wise:

1) RSI above 70 gets into overbought zone but it's the crossover from
— Nishant Kumar (@nishkumar1977) November 29, 2020

Elliott Wave Internati...
@elliottwaveintl

#RSI is a well-known #technicalindicator... that many new #traders don't really know how to use. Want to learn the RSI's secret value? Read this short essay by our Head of Global Research (In focus: #VT, Vanguard Total World #Stock #Index #ETF.) https://t.co/TNKuTQvSNp

If everyone was holding bitcoin on the old x86 in their parents basement, we would be finding a price bottom. The problem is the risk is all pooled at a few brokerages and a network of rotten exchanges with counter party risk that makes AIG circa 2008 look like a good credit.
— Greg Wester (@gwestr) November 25, 2018

The benign product is sovereign programmable money, which is historically a niche interest of folks with a relatively clustered set of beliefs about the state, the literary merit of Snow Crash, and the utility of gold to the modern economy.

This product has narrow appeal and, accordingly, is worth about as much as everything else on a 486 sitting in someone's basement is worth.

The other product is investment scams, which have approximately the best product market fit of anything produced by humans. In no age, in no country, in no city, at no level of sophistication do people consistently say "Actually I would prefer not to get money for nothing."

This product needs the exchanges like they need oxygen, because the value of it is directly tied to having payment rails to move real currency into the ecosystem and some jurisdictional and regulatory legerdemain to stay one step ahead of the banhammer.