MSB Global Capital Corp. (MSBM)

[Thirsty Tiger]

More on RSI

When looking for trend reversals, I look for divergences in the RSI. If a stock is heavily oversold, with the RSI under 30, look for gradual waves of higher lows and higher highs in the RSI reading. This is considered a positive divergence, and indication for a long entry. Conversely, if the RSI is over 70, look for a negative divergence, a series of lower highs, that may indicate a short entry or an exit point on a long position.

As with any technical indicator, RSI is just one of several I look at. I prefer to have at least three confirming indicators.

and, yes, when RSI readings are above 50, this is considered a bullish indicator