chart shows the daily prices of FDX. RSI overbought or oversold for long periods of time. For instance, Connors recommended the 200-period moving average, and m did just that in their RSI2 examples. RSI signals in bear trends to alert us to the beginning of bull trends. Normally short-term traders use a smaller period, such as a nine period RSI, to replicate shorter term movements in the market.
However, the last overbought signal circled in black sent the market down below the previous lower swing low. We began looking for overbought signals for short trades. RSI on a, eurusd 8 hour chart. What this approach implies is that one good trade is more likely to be followed by another good trade. 3 things I wish I knew when I started trading forex * 4 effective trading indicators every trader should know.
Forex rsi schoiastics strategy review