Developed by J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. According to Wilder, RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure swings and centerline crossovers. RSI can also be used to identify the general trend.
RSI is an extremely popular momentum indicator that has been featured in a number of articles, interviews and books over the years. In particular, Constance Brown’s book, Technical Analysis for the Trading Professional, features the concept of bull market and bear market ranges for RSI. Andrew Cardwell, Brown’s RSI mentor, introduced positive and negative reversals for RSI and, additionally, turned the notion of divergence, literally and figuratively, on its head.RSI is extremely undervalued in terms of importance it holds, if you are only holding price action setups or setups based on volume profile, this tool is going to complement in every sort of setups.
most of the trading community focuses on normal divergences and unaware of power of hidden divergences.
This course covers , introduction of RSI, different types of divergences, hidden divergences.
RSI behaviour in bullish, bearish and sideways market.
Be it day trading, swing trading or long term trading it works equally well.
I personally use RSI with wedges , head and shoulder or double bottom to ensure my entry.