Using Relative Strength Index (RSI) to Plan a Stock Trade | Getting Started with Technical Analysis

[@sjsphotog]

Good stuff CM. I learned from another trader to ignore the overbought and over sold lines and just look to get in if the RSI is above 50 with the sweet spot between 45 and 55. Of course you need to use this with other indicators and charts as well to confirm the trade sentiment. Keep it up.

[@tradertalkswebcasts]

Yep, lots of potential variations, depending upon the trader's preferred methods. In any event, thanks for watching! ^CM

[@shawniehoward]

Thank you Cameron. Lots of good information!

[@tradertalkswebcasts]

Glad you liked it! It's always my pleasure to deliver these webcasts. See you in the next one! ^CM

[@RichardLeGendre-x8p]

What do you do when the RSI and the MACDHistogram give conflicting signals? Should I not use the two together?

[@tradertalkswebcasts]

Great question! This sort of indicator conflict is a conundrum that a trader should expect to encounter regularly when more than one technical study is employed. When such a conflict arises, the trader has a number of choices to be considered: 1. Move on to a chart with no conflict. (This is likely the most common action, in my experience.) 2. Assign priority to one or the other of the two studies. 3. Remove one study from future charts. 4. Use a different combination of studies, etc. You can see why technical analysis is a constant effort in experimentation, education, and plan refinement, and why each trader should likely have their own set of rules governing how such conflicts will be resolved. So, which of these approaches is "best" for you? That's a decision I'll have to leave to the trader. In any event, thanks for watching, and I'll see you in the next one! ^CM