AI
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| Alias Born | 03/23/2013 |
Tuesday, November 07, 2017 11:13:12 PM
Kiwi, I remain long and strong.
The PPS turned down today after reaching the top of the Target zone. Despite the sell-off, the pullback held above the axis line (drawn across the October high on a closing basis) and the lower channel line (demand line). There was definitely a loss of momentum, but no overtly bearish volume on the downwave.
As for the RSI, it’s a worthless indicator because of its tendency to remain overbought or oversold for lengthy periods – especially on the heels of a squeeze breakout. Take a look at the S & P 500:
It has been overbought for well over a month. I mainly use the RSI to identify trend changes via trendline breaks as depicted in the first chart above.
Cheers,
FFS
The PPS turned down today after reaching the top of the Target zone. Despite the sell-off, the pullback held above the axis line (drawn across the October high on a closing basis) and the lower channel line (demand line). There was definitely a loss of momentum, but no overtly bearish volume on the downwave.
As for the RSI, it’s a worthless indicator because of its tendency to remain overbought or oversold for lengthy periods – especially on the heels of a squeeze breakout. Take a look at the S & P 500:
It has been overbought for well over a month. I mainly use the RSI to identify trend changes via trendline breaks as depicted in the first chart above.
Cheers,
FFS
