Tag Archives: RSI

Australian S&P/ASX 200 Index Near Two-Year Highs

The Australian S&P/ASX 200 closed last week a tenth of a point higher from its April 4, 2011 close and it is just a few points away from the intraday high of 4,796.4. This index is now in overbought territory according to classical … Continue reading

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Divergences Between Indicators – Part II

This is the second part on indicator divergences. Part I included results for the long side of a simple system based on the divergence concept. In part II the corresponding results for the short side are presented. It appears that this … Continue reading

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Divergences Between Indicators – Part I

Divergences between indicator values can signal continuation or reversal of short-term trend depending on the difference in lag. In principle, this does not differ from moving average crossovers where a fast average crosses above or below a slow average. However, the underline dynamics in the case … Continue reading

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Equity Investors Should Not Pay Attention to RSI

It is puzzling to me than in some websites and newsletters about stock investing one can see references to an indicator called Relative Strength Index. This is an indicator used mainly by very short-term traders, often the “hit and run” types. This indicator has little … Continue reading

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A Reminder and Example About the Short-term Nature of RSI

I thought this is a good example because it illustrates how the RSI (Relative Strength Index) is a very short-term indicator and, in addition, reminds of the rule that “the market can stay overbought or oversold for longer than you can stay solvent”. … Continue reading

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Gold and Silver Charts Indicate Extreme Oversold Conditions

Gold and silver are way oversold. The charts for GLD and SLV show levels of relative strength index not seen for years. Although markets can stay oversold for extended periods of time, some type of a rebound is expected from these levels. … Continue reading

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GLD – Beware of Greeks Bearing Gifts

As of the close of September 30, 2011 there is a small symmetrical triangle formed in the daily chart of GLD, also known as a pennant. This chart pattern is usually a continuation formation that duplicates the move preceding it. … Continue reading

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