Wednesday, August 23, 2006 4:35:04 PM
I noticed that you never received a response regarding your question. I was kind of curious to see his explanation if this also. Because my interpretation of the RSI is the strength of the stock. 14 is the recommended parameter and there is a formula to measure the highs and lows to come up with a number between 0 and 100. I am not sure the MM's actually let the stock rise because the RSI has moved above 50, but there are people that run technical scans on the RSI and when it moves above the 50, you have traders that key on this and pump money into such stocks which can result in a higher PPS. So if the RSI moves above the 50 and the volume starts to increase with buying pressure then your PPS should move higher as a result of this. But then again, using one indicator is not recommended for trading stocks.
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