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Monday, October 28, 2013 6:13:28 PM
JLS, to use 2011 monthly RSI compared to current is not the way you would look for a divergence as price is higher now and RSI also. Looking for divergences requires comparing a previous price to current and seeing if RSI is in line or has a divergence. I would guess over 75% of tops and bottoms sport a RSI divergence of some sort in some or all time frames. It is a secondary indicator that I use to enforce the primary signals. I like RSI better than MACD. The chart below shows a recent sell I made in CLF, the red line shows the divergence and said "get out"
"I may not agree with what you say,
but I agree with your right to be wrong."
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