Elliott Wave Live: Illustration of RSI Patterns

Friday, October 19, 2012

Illustration of RSI Patterns

Using indicators to confirm my wave count is an integral part of my trading arsenal. The wave count has been removed from this chart.

There are many ways I use RSI and other momentum indicators in my work; therefore, I briefly want to touch upon the subject and not get into a full blown account of how to use RSI. I'll save that for another day.

Drawing your attention to the RSI indicator which is made up of the standard setting and a 9-period sma. I've drawn in trendlines which in this case provides me with an objective way to measure oscillator resistance against a maturing wave count.

As you can see by this chart, price and RSI resistance came together at the most recent high. The decline in price from 13523 has drawn RSI to the lower level of bullish support (40) , and trendline support. If it breaks its bearish.

As an exercise, label the chart and see how RSI can assist you in building a case for your wave counts.

Best of Trading

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Friday, October 19, 2012

Illustration of RSI Patterns

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