Can rsi alone be a good indicator?

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discussion?

for example… above 70, look to sell… below 30, look to buy

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RSI is like everly indicator. It has its strengths and weakness. For example, using it could get you wrecked in a trending market.

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because it may stay oversold or overbought for extend periods? am i right? how best can we use it then

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Here is the description of Noconas RSI(5) H1 system rules traded live on qqqq`s

http://img381.imageshack.us/img381/390/noconahourlyv2strategy7ce.gif

Regards

Baby24

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Check the internet for the 3 day r2/r3 rsi system from tradingmarkets (free) its been extensively tested and can be adapted for forex. A person who goes by the name bluto has adapted it and had incredible success.

You can adapt it yourself.

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RSI is an excellent indicator. As a matter of fact, generally it’s the only indicator I have on my charts at times. However, if you’re just looking to trade it if it’s in overbought and oversold areas, then you’ll lose your bank roll fast. Price doesn’t move in direct proportion with RSI. Just like the name is called, it’s relative strength.

I draw trendlines and look for divergence with RSI. However, everything is validated by immediate price action.

Perhaps, I should start a thread illustrating the concepts.

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RSI is basically price action… If you know how to incoporate it into ur trading. U can just trade only using rsi… but u need other elements to help… RSI alone cannot do much… its good to use with fibs… Btw, rsi is my key indicator. Looks like there are many hidden rsi users around…

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my opinion is that most indicators are not all that great, they can be used as a visual, but dont trade just off of rsi alone, with that said i dont think a chart full of indicators will do any good either, notice how everyone is constantly coming up with different combos of indicators, you know why? they dont work in the long run, they dont predict the future. there is know holy grail system out there, the market will find a way around your system in due time and gobble you all up, so price alone with fibbs and basic trends are the only way i can see trading, all IMO of course, everyone gives up on there system eventually, you need a method, because a system is robotic, u wait for your indicators to do something, but people aren’t robotic, its all supply demand greed and fear. am i a good trader, no not really, but atleast i gave up on useless indicators.

1 Like
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I totally agreed with you… Too much indicators are not good… I tried many indicator based system but I can’t do well with them… Not that they are not good but I think it cannot sustain in the long run. Im just using fibs and rsi to trade… That’s all… pretty plain…

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ya i think simple is better myself too, an indicator here or there whatever works for that person, but i see theses systems fully loaded, rsi and fibbs is pretty plain compared to some of the things ive seen lol

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lol seems like the best is still the no brainer way … follow the trend