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RSI Breakout Strategy


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1ST POINT:
RSI MUST CROSS 60 

2ND POINT:
RSI MUST MAKE A PEAK ABOVE 60 

THEN RSI AFTER MAKING PEAK SHOULD SLOPE DOWN BUT SHOULDN'T SLOPE BELOW 60 3RD POINT

AFTER SLOPE IT SHOULD RISE AGAIN AND CROSS THE PEAK IT MADE FINAL POINT


RSI Calculation
1.    Typical Price = (High + Low + Close)/3
2.    Raw Money Flow = Typical Price x Volume
3.    Money Flow Ratio = (14-period Positive Money Flow)/(14-period Negative Money Flow)
4.    Money Flow Index = 100 - 100/(1 + Money Flow Ratio)


USE THIS SETUP FOR TIME BEING
·        RSI CROSSES 60
·        MFI CROSSES 60
·        RSI(14) Breakout


The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price. The RSI computes mo mentum as the ratio of higher closes to lower closes: stocks which have had more or stronger positive changes have a higher RSI than stocks which have had more or stronger negative changes

Uptrends generally traded between RSI 40 and 80, while Downtrends usually traded between RSI 60 and 20.

If the relative strength index is below 50, it generally means that the stock's losses are greater than the gains. When the relative strength index is above 50, it generally means that the gains are greater than the losses.

The slope of the RSI is directly proportional to the velocity of a change in the trend. The distance travelled by the RSI is proportional to the magnitude of the move.