How To Use The Relative Strength Index (RSI)

[@mxb2638]

Why isn’t this the most watched video on RSI!! Great video and explanation. Thanks for covering beyond the obvious.

[@DKellerCMT]

Appreciate the very kind words! D

[@charliemiller554]

"Overbought means up a lot." Never heard it put quite that way before - very well put! In my own investing journey my use of RSI has not been particularly well developed - mainly have historically looked at it in terms of overbought/oversold. More recently I've begun using it to identify divergences between price and momentum and this has been very helpful - especially in conjunction with MACD and over a range of timeframes. I never did notice the late 2021 divergence you mentioned here in the SPX, so clearly I need to work this into my process! Very much appreciate your thoughtful perspective as always Dave. 👍

[@DKellerCMT]

Thanks for the kind comments Charlie- glad you found this one helpful! D

[@c.j.3219]

Ive watched many vids on rsi and this is the first to simply explain why the indicator is doing what it’s doing instead of just what to do when it happens. Thanks so much for explaining this in detail and making it simple to understand! Gained a new subscriber

[@DKellerCMT]

Really appreciate the kind words! D

[@jamescarine2752]

This video is terrific. Picked up some great nuggets, thank you.

[@DKellerCMT]

Glad you enjoyed! D

[@jarvisidlette236]

Wilder would be proud of this awesome break down of his indicator, R.I.P j.Welles wilder

[@DKellerCMT]

Thanks for the kind words! D

[@stumpy25lbs]

Excellent video - you explain it very well thank you Dave 🙏🏼

[@DKellerCMT]

Thanks for the feedback! D

[@somejohndoe3004]

Excellent video, thank you for the quality content.

[@DKellerCMT]

Appreciate the watch! D

[@tablameister]

Thanks Dave. I use RSI and MACD, mostly because I have watched a lot of Mary Ellen McGonagle's videos.

[@DKellerCMT]

Mary Ellen knows her stuff! D

[@Lights_Darks]

Thanks, David! Very helpful!

[@DKellerCMT]

Cheers and thanks for watching! D

[@Dk-bp1ll]

Thanks Dave. Can please make a video regarding entry and stop loss specially how you enter and exit a trade.

[@DKellerCMT]

Added to the list and will do! D

[@bigjj974]

Another good lesson. Thank You Dave

[@DKellerCMT]

Absolutely and thanks for watching! D

[@ericrock4357]

Very good! Thank you....I like the 40 level principle

[@DKellerCMT]

Total game changer for me when I started thinking of RSI this way... D

[@tonyking4]

Thanks for the video. When/how is RSI divergence negated?

[@DKellerCMT]

Great question Tony. Easiest way to negate this sort of signal is the price makes a subsequent high on higher momentum, thus no more divergence. Will do a video on this at some point! D

[@jy8163]

Thank you Dave for the video, I have rookie question, is RSI only useful for daily chart? Thx

[@DKellerCMT]

Good question and no- RSI actually applicable to longer time frames- weekly, monthly and intraday like 5-minute charts.

[@bernieparrish1482]

Thank you Dave.

[@DKellerCMT]

Cheers and thanks for watching! D

[@nat8843]

How much of the upcoming pullback is due to the Fed's actions?

[@pezzodipunto2239]

Well intended advice (which may disagree with of course): try not to get too distracted by narratives, watch the tape.

[@DKellerCMT]

That is a source of great debate always! "The why is always crystal clear in the rearview mirror." D

[@RCBOSS1969]

Thank you!

[@DKellerCMT]

Cheers and thanks for watching! D

[@johnshelton7525]

Nice job

[@DKellerCMT]

Very much appreciated John D

[@petem1991]

RSI is a great indicator

[@DKellerCMT]

It is on most charts I review, for good reason! D

[@valeriyaalekseeva1492]

How much money can you gain for a week? There are some kind of limits or not?

[@DKellerCMT]

With any indicator/system/plan, how much money you can gain depends on how much money you are risking. Greater potential reward comes with greater potential risk! D

[@muhammedhamsa3239]

❤

[@martyjames6204]

in my opinion rsi, macd tell you nothing you cannot see by reading pure price action

[@DKellerCMT]

I have known people who say the same thing and I get the argument! I would say that something like RSI makes it super easy to rank a list of any stocks/ETFs by momentum, so there's value there! D

[@martyjames6204]

@@DKellerCMT sure, but easier to rank by c/c(5 days ago) etc using amibroker / realtest etc and way more effective imo. cheers

[@TradersLessons]

I think they are great, but need to be combined with other indicators.

[@mxb2638]

They help you give a subtle probability if a breakout or breakdown is going to work or not. A stock nearing breakout but in RSI divergence likely won’t break.