davesaint86
725 posts
msg #141135
- Ignore davesaint86
modified |
1/18/2018 1:32:06 PM
The blue vertical bar is the RSI(30). The 0 line is a RSI(30) reading of 50. A reading above the 0 line bove is strength and below is weakness. You will notice that the vertical bars on XIV are above the 0 line and the vertical bars on the VXX are below the 0 line. In an up trending ETF like XIV you would want to see the RSI(30) vertical bars over the 0 line. The RSI(4) and RSI(9) indicators should be above the RSI(30) bar or if there is a cross up in the middle of the RSI(30) bar most likely there is going to be a confirmed buy. Preferably you want to see the RSI(4) cross up over the RSI(9). You can just use the RSI(9) crossing above RSI(30) as a buy also. In a down trending ETF like VXX for a buy signal to trigger you would want the RSI(4) and RSI(9) to go over 0 line and sell when the RSI(4) crosses back under the RSI(9). These will be quick trades most likely because there is no established up trend. I personally use the RSI(4), (9), (30) as a confirmation signal to my other indicators I use. I learned this concept from Marty Chenard from stocktiming.com. He uses the RSI(4) and RSI(9) different then I do however. By the way XIV has an embedded Slo Sto 14,3 reading from December 11 to January 12th. You can be confident that during this time that period was a strong trend and you have stayed in the trade that whole until it lost it's embedded reading.
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