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Stochastic Momentum Index Indicator for Safe Trade Entries

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Stochastic Momentum Index Indicator
Stochastic Momentum Index Indicator

This video on the Stochastic Momentum Index Indicator will most likely be a revelation to most traders. I don’t see a lot of people trading this one, but it can be used very profitably.

You’ll learn how to use then energy of the stochastic momentum indicator to keep you on the right side of the market. It aligns with my principle of always trading in the direction of the dominant energy of whatever market your day trading or swing trading.

Enjoy the video and please leave your comments below (even if they’re negative!).

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.

VIDEO TEXT:

Today I am going to show you this stochastic momentum index indicator, and how it can help you get into trades and when to exit trades. These are two of the things that I find people have the most problems with, and today I am going to help you with both of them, with one indicator.

Having said that, never use this by itself. Use it with other things. Now I’ll demonstrate that with you right now.

STOCHASTIC MOMENTUM INDEX INDICATOR: FIRST THINGS FIRST.

First of all let’s open up the Stochastic Momentum Index Indicator. You can see the parameters I use. It’s called SMI or Stochastic Momentum Indicator. I use lengths that are different than are going to be defaults in your indicators. When you open it up, this is what I use. 15 for D and 6 for K. I like those, but you can fool around and play with other inputs if you want to. Upper and the lower, horizontal lines, 40 and negative 40 that is traditional. And then it draws 2 lines, the SMI, I am going to use green for that, and the average of the SMI. And we will use red for that. Now let’s see how to trade it.

If you go up here, as I said you don’t want to trade this by itself. So here is one of the rules. In top dog trading, we call it the rule of 3. We’ve gone, we’ve approached this price level 3 times. And failed to break through it. So the rule of 3 says that after the 3rd attempt, if the market doesn’t break through a price level. then it’s unlikely to breakthrough any time soon.

Based on that, I’d be happy to take the trade in the opposite direction. That is likely going to be final resistance. At least for the near future. But we need to add some sort of confirmation for that, and that’s how I use SMI. Use it really as a confirming indicator.

YOU NEED CONFIRMATION

So since we’ve got this, now I’ve got something to confirm that. And that here is the green line. Goes below the red line. Again green line is the Stochastic Momentum Index Indicator. Red line is its average. And this is going down. Momentum often leads price by the way. That’s one of the long run characteristics of momentum. And so we get our confirmation of trend change here. And we could even take a first cycle high after the cross of the moving averages here. By the way this is the 50 period simple moving average, and then the black one’s is 15 exponential moving average for your reference.

And oh by the way, you will need something that helps time your entries, obviously. The Stochastic Momentum Index Indicator is a big broad stroke indicator, it’s not really for precision, accurate timing, if you want my timing indicator, I’m happy to share that with you. Just shoot me a quick email at Barry@TopDogtrading.com and I will give you access to that for free.

But for today’s lesson, lets continue on. What we’re doing is we’re confirming the direction of the new trend now, down with this indicator, saying that yes the direction is down. But you know what, it’s also going down with some velocity. With some speed, some strength. And that’s the only time we want to trade in the direction of the trend is when I say there is a strong trend. This indicates it’s a strong trend. I like to primarily use this to confirm the direction that I am trading it.

ANOTHER GREAT SIGNAL YOU CAN USE FOR DAY TRADING OR SWING TRADING

Now here is another sign that you need to be aware of. That’s when the 2 lines of the Stochastic Momentum Index Indicator just kind of hover each other. Then that means there’s no momentum. There’s no strength. And so that’s a good time to just keep your powder dry. Not take any trade at all. You can see what happens here. And you know what, it’s interesting because the market does pop up here. But it doesn’t sustain to the upside, does it? Looks like maybe we are getting the trend started. But there is no strength behind it. And therefore guess what, it doesn’t continue and it actually comes down. So this is a second Stochastic Momentum Index Indicator signal to look for when the lines are on top of each other. Best to just stay out of the market.

And one last piece of advice on how this thing works. When you get trends, that move up and then they just go sideways for a while. You see how long it’s going sideways. Well when the market goes sideways for a while, the trend is still up, isn’t it. It’s up, it’s up, and it’s up. 50 MA is still up. That’s the green line. We do put in a 5 wave trend, the average trend. But in between, each one of our waves, waves highs, 1, 3 and 5. What happens, you get a sideways movement for quite a while on the Stochastic Momentum Index Indicator.

INTERPRETING THE SMI (STOCHASTIC MOMENTUM INDICATOR)

That means that the acceleration, the velocity, the strength has come out of the market. So the Stochastic Momentum Index Indicator will show you that. And so the green line will not stay above the red line during those times. Don’t expect it to. Same thing happens here. We just go sideways for a bit, until we popup there.

In these situations, what you do is you just have to wait for the green line to come back up above the red line. So sometimes come in a little early like this one, sometimes comes in a little bit later, like this one. And you can obviously adjust the settings if you may come faster than the ones I have. You get quicker crosses, but you also get some false crosses like a cross here.

INDICATORS ARE NEVER WRONG!

But anyway the indicator is not doing anything wrong. Indicators are never wrong by the way. They are just simply mathematical formulas. So they are doing the right thing. You puts some values in one side, and it pops the different value out the other side. It’s always correct based on the math of the indicator. But understanding how it works, and why this happens is very important. So that you’ll say, ‘Oh well this thing isn’t measuring the momentum of the trend.’ Yes, it actually is.

Momentum has come out of the trend during this time and it’s indicating that accurately. So during these long complex retraces, don’t expect the green line to stay above the red line or whatever colors you put to it. It’s not supposed to. It’s actually telling you something that’s useful.

So there you go, I like to show all these different examples, so that you don’t think, ‘Oh my gosh this is the Holy Grail. There is no Holy Grail. Well, if there is a “Holy Grail” it’s really between your ears. Getting your head straight, getting you head together, getting attitude right, developing patience, and of course having a successful trading methodology, which has a number of variables to it. Not only indicators but specially risk management, money management. That has a positive expectancy over a large sample of data. That’s what trading is really about. Putting all those things together.

FREE GIFT!

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other information you’d like about the RSI indicator buy and sell signals or other topics you’d like me to teach in the future.

Also I am giving away one of my favorite momentum trading strategies that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

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RSI Indicator Buy and Sell Signals for Optimal Profits, Part 3

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RSI Indicator Buy and Sell Signals
RSI Indicator Buy and Sell Signals

This video on RSI Indicator Buy and Sell Signals will contradict some of the classic teachings. RSI is commonly referred to as a momentum indicator … but it really ISN’T! This video is part 3 of a 3 part series on the RSI indicator strategy.

The links for part 1 and part 2 of this series of videos on RSI indicator buy and sell signals are below, but watch this video first.

What most teachers, books and courses instruct about RSI indicator buy and sell signals, 180 degrees wrong!

Enjoy the video and please leave your comments below (even if they’re negative!).

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.

VIDEO TEXT:

Welcome to part 3 of this series. This is going to be the final installation of this series on RSI Indicator Trading Strategy. In the first 2, we covered some good ground and today I promised that I am going to show you, how to really make the RSI Indicator a momentum indicator because even though it’s called a momentum indicator, it’s really not.

The reason that RSI isn’t a momentum indicator just for review, is because momentum requires mass. Momentum is the product of mass and velocity. RSI only measures velocity or rate of change. But it does not include mass, or as we refer to in the markets, volume. That’s why I say, controversially, it’s not a momentum indicator.

WHY THE RSI ISN’T A TRUE MOMENTUM INDICATOR

So here’s the RSI, it’s the blue line. Now below it, I have put a different indicator, MFI. That stands for Money Flow Index. Now the Money Flow Index is also an oscillator that goes between 0 and 100. Some people refer to it as a volume weighted RSI because it does incorporate volume into the RSI indicator.

You’ll notice that actually it’s very similar. It moves in very similar ways but there are sometimes when it is quite different and those are the key times. For example, let’s take a look right here. We put in a high on the market, by the way this is my rubber band trade. If you want my rubber band trade, I do offer that trade setup for free. And little more than I can go into right now, but I’ve got a video that shows you how to trade that setup in about 26 short minutes. So feel free to go ahead and click on the box in top left corner there, and I’ll get that to you.

Notice how, in this situation here, the RSI is still going up. But the MFI is trending down. That means that there’s a lack of volume pushing this up, so velocity is up, but actually momentum, when you incorporate the volume aspect of that, which is down, and therefore in my opinion, the MFI gives us so much better signal here, saying this is moving up on weakness, and therefore we can expect a high and come back in the direction of the trend.

HOW TO DETERMINE IF THE STOCK MARKET (OR FUTURES OR FOREX) IS RETRACING OR REVERSING

So to me, this gives us a better signal, I say that, ‘Oh, okay. We are doing a retrace here,’ but that move up is on weakness, therefore I don’t expect the trend to reverse and go up. Actually I think that’s just a complex retrace up in and overall downtrend which is exactly what it was. So by incorporating volume, you see the weakness in the up move, whereas just with the RSI, without the volume incorporated into the formula, you don’t see that. You’re blind to that.

Now to support that, in the last 2 videos, I wanted to say that even with the MFI, as I said with the RSI, just reaching these so-called overbought or oversold areas, typically 70 and 30, does not mean you are putting in a high and should go short, it’s not really over bought here. Therefore the market continues to go, making higher high. Well guess what, the same thing applies with the MFI. So here it gets well over. In fact it gets even a little more above 70 than the RSI does. And then the market still continues to go up.

RSI INDICATOR BUY AND SELL SIGNALS WORK BEST IN THE DIRECTION OF THE TREND

I would only trade it in the direction of the trend, not looking for reversals. I’ll look for trend reversals. Lot of people actually do say that the MFI is better than the RSI indicator buy and sell signals, looking for trend reversals. And they’ll add some other qualifications in there as well which is good. Sometimes they look for divergences. Things like that. Personally, historically, I have not seen that to be very accurate, so I only use it to trade it in the direction of the trend.

Now here is an exception to that rule. It’s not really an exception to the rule, it actually supports the rule I just said. But it combines the two, which is very interesting. So here we have a situation where we do get the indicator being oversold. Reaches 30, that’s the magenta dashed line there of course. So but here’s the thing, we’re in an uptrend.

WHEN OVERBOUGHT AND OVERSOLD EXTREMES DO MATTER

So the one time that I would look for these extremes, these overbought, oversold conditions in order to take a trade is only if we are oversold in an uptrend, or conversely if we are overbought in a downtrend. So still, I am looking for a trend continuation though, that’s the key.

I’ll give you one last little tip here and again it’s still for trend continuations. Another signal you can use to get back in the direction of the trend.

USING TREND LINES WITH RSI INDICATOR STRATEGIES

Here we have an uptrend that’s and you can draw trend lines on this thing. And if you draw trend lines on it works a little better than with the RSI indicator buy and sell signals. Its forming a different pattern here. If you draw a trend line there and you wait for the breakout of the trend line that often indicates a shift of momentum. In other words we want to be trading a strong trend, not a weak trend. So we want strength to come back into this trend.

There are couple ways you can just do it on the break of the trend line if you want to. Or some people will draw a line above these highs. Wait for the price action to actually breakout above there. But only if it’s accompanied with the break of the trend line.

You can draw a trend line there and wait for the breakout here. Now if you wait for breakout, I wouldn’t wait for it to breakout of that high. I would say, well put it in here, but then at the same time you want to make sure, again trend continuation on strengths.

If you drew it on the RSI here, it didn’t really quite work out quite as well. Would have come in at this low, and I guess you’ll be okay. But again it’s just a matter of the MFI incorporating volume, making it more literally and accurately, a momentum indicator. So test it for yourself. Don’t take my word for it. Put it on your charts. Paper trade it or trade it on a demo account for a while. See if you like it. And if you do, great. And if you don’t, that’s alright. There’s plenty of other great indicators out there.

FREE GIFT!

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other information you’d like about the RSI indicator buy and sell signals or other topics you’d like me to teach in the future.

Also I am giving away one of my favorite trend trading strategies that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

For part 1 of the RSI Indicator Buy and Sell Signals video simply click here: http://www.topdogtrading.com/unusual-rsi-indicator-trading-strategy-rarely-taught/

For part 2 of the RSI Indicator Buy and Sell Signals video simply click here:
http://www.topdogtrading.com/rsi-indicator-strategy-part-2/

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RSI indicator strategy, Part 2

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RSI indicator strategy
RSI indicator strategy

This RSI Indicator Strategy video may be considered heretical. But it hey, if it makes money, then that’s what really matters. Try it out and prove it to yourself. This video is part 2 of a 3 part series on the RSI indicator strategy. Click Here for part 1.

What most teachers, books and courses instruct about how to trade the RSI indicator, is exactly the opposite of what you should be doing.

This is part 1 of 3 videos demonstrating how to correctly trade the RSI.

Enjoy the video and please leave your comments below (even if they’re negative!).

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TEXT:

There will be 3 parts of this video, so look for part 3 of the RSI indicator strategy that will pick up where this one left off.

Welcome to this video on the RSI Indicator Strategy Part 2. If you didn’t see part 1, well go ahead and watch this video now you’re here, then go back and watch part 1.

We’re going to share a couple of extra things. You notice that my RSI Indicator looks a little different now. And let me point out to you what we’ve got.

SETTING UP THE RSI INDICATOR

The blue line here, that’s the RSI Indicator. And as I talked about before, its range bound. It can only go from 0 to 100. And so I put some extra lines on here. There is your mid line that’s 50. These are considered what we call the oversold line at 30, overbought line at 70 which I said are not good terms. And that’s what we talk about in part 1, so go and read that, or listen to that.

The other line to put on here are at 60 and at 40. These are very significant. So this is a different way to read RSI indicator strategy. Many people just look for these overbought, oversold signals and are doing them backwards. Whereas actually going up here shows strength. Once we start getting into the bullish territory, which would we above 50, then we are looking at a relative strength. Now remember that’s what this is, RSI. Relative Strength.

Once we get above there, and especially if we got to 30. But we are into bullish territory now where we get above 60. So not going to make it go all the way to 70 but above 60. So once we get above 60, then we are going to look at 40 as a support level. And as long as we can stay above 40 in a bullish trend, we’re going to consider that bullish momentum or strength. A strong trend. And again the RSI is a blue line. It’s a very choppy line, its one thing I don’t care about.

THEY’RE TEACHING THE RSI INDICATOR STRATEGY 180 DEGREES WRONG!

We don’t want it to be all the way down to 30 because otherwise that actually indicates strength to the downside, contrary to what most people think that it’s oversold. No. that would actually be strong bearish signal. But we do want it to stay above 40. And if it stays above 50, well even better. And so this whole time, you can see big move up and the RSI does stay above 40 and even mostly above 50. So that is another better way to read this.

Trading it in the direction of the trend is one of the keys. One of the biggest mistakes people do is they try to always use these oscillators. Especially these bounded oscillators to trade against the trend and that’s just disastrous. you use momentum or strength indicators to indicate the strength of trading with the trend, not for a reversal trade.

Here’s a situation where the RSI basically is just staying between our 40 and 60 line. And so it’s hovering around 50. And what happens during that, consider that our neutral zone. It’s not showing strength to the upside, or the downside. We want to show strength to the upside or the downside first. And as long as we are in that neutral zone, the market doesn’t really go anywhere.

Because there’s no strength or rate of change, great rate of change going to the upside or the low side. That whole area, as long as we get stuck in there, not just retracing to it, but when we get stuck in there, then I consider that just a neutral zone and that’s one way to help avoid getting into choppy markets. That’s a question I get often as, ‘Barry how to stay out of choppy markets?’ Well that’s one technique you can use right there.

MAKING RSI INDICATOR SIGNALS MORE CLEAR

Now in this shot, what I’ve done is I’ve added a moving average to the RSI indicator strategy. So this is a 9 period moving average, the black line of the RSI Indicator. So all that does is smooth it out a little bit, and because it is a moving average, it will be a little lagging. But it doesn’t create all of these jagged lines. That’s option if you want it or not. You don’t have to use that. But again, you’ll see the signals watching those different horizontal lines as to where it is.

Now one of the keys here is that you can actually use momentum, define the end of the move if you time it correctly. And it doesn’t work 100% of the time, well nothing does. But the only time that I would look for a trend reversal is late in a trend. I’m not going to look for it early in the trend.

So we have waves 1, wave 3 or 5 and so. It wouldn’t be until wave 5 that I would actually look for some kind of a divergence like we get here on the RSI indicator strategy with that. So early on trend? No. because here’s what you have to understand. Even though well, for example here we get a divergence. Don’t we? Right there. Higher high there, lower high here on the RSI.

BAD INDICATOR DIVERGENCE SIGNALS

So what happens is that yes there is a slowing of momentum if you will. But that does not necessarily mean it’s a reversal of momentum. Just because momentum comes out of the market. Okay, so we don’t get as big as swings, and what happens is, yeah the market does go sideways for a little while. But that’s all that means. And then it continues up.

So timing, and being able to, this is why wave counting comes in. so effectively is to know how far/long you are in that trend, the trend is your friend until the end. So the trend is your friend, your best friend early in a new trend. And earlier the better. That’s when I want to enter a trend, is at the very beginning of when it’s identified. Now I don’t want to get in late to a trend, in fact that’s the only time I actually would look for reversals. So that time of momentum shift is more likely to result in a reversal of a trend.

Now here is an example where we do get a 5 wave trend which is average. 1, 2, 3, 4, 5. We do not get a divergence on RSI indicator. So you get maybe look at, it’s not even really a divergence there. Because price is coming down at that same time. We had a5 wave but no real divergence so trends do not always end with momentum shifts. Sometimes they end with actually one of the best signals that I like to look for the end of a trend is the high volume spike.

THE CONFLUENCE OF EVIDENCE FOR TRADING STOCKS, FOREX AND FUTURES

You can’t trade any indicators. So RSI, stochastics, MACD, CCI, whatever you’re trading, none of them can be traded alone. Each one of them is a tool, and that’s it. That’s all they are. So use it as one piece of evidence, one tool in your toolbox. These are called indicators, they are not called moneymakers, and there’s a reason for that because they don’t make us any money.  They are just simply, there’s nothing magical about indicators. They are just mathematical formulas. That’s all they are.

So they are never wrong in the sense that you plug numbers in one side and they bring out the value of the other side, and that’s always correct. But then you have to take that information, plug it into a viable trading methodology in order to make money. And then trade it effectively with discipline, and with money management and risk management, which is utterly important. So those are the keys. Now I’m going to leave you with one last piece of controversy, and that is this.

THE RSI SCANDAL

RSI is not a true momentum indicator, in fact the indicator is commonly referred to as momentum indicator often seen as leading indicators, CCI, momentum, RSI here, stochastics, MACD. Those are commonly called momentum indicators but really they’re not. They are velocity or rate of change indicators, and the reason for that is that they are just measuring the rate of change of price. But momentum is actually the product of mass times velocity. These indicators are just velocity indicators.

So in the markets, in order to incorporate mass into it, we would have to use volume as well. And these indicators do not consider volume, therefore they do not consider mass. Therefore they are not literally momentum indicators. So there you go, another piece of controversy for you from Top Dog Trading.

Anyway, in our next video, in part 3, we’ll look at that, and we’ll look at how to solve that problem and create a true momentum indicator based around the RSI indicator strategy.

FREE GIFT!

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other information you’d like about the RSI Indicator Trading Strategy or other topics you’d like me to teach in the future.

Also I am giving away one of my favorite trend trading strategies that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

For part 1 of the RSI indicator strategy video simply click here: http://www.topdogtrading.com/unusual-rsi-indicator-trading-strategy-rarely-taught/

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Unorthodox RSI Indicator Trading Strategy Rarely Taught

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RSI Indicator Trading Strategy
Unorthodox RSI Indicator Trading Strategy

This unorthodox RSI Indicator Trading Strategy actually contradicts traditional teaching. But it works!

What most teachers, books and courses instruct about how to trade the RSI indicator, is exactly the opposite of what you should be doing.

This is part 1 of 3 videos demonstrating how to correctly trade the RSI.

Enjoy the video and please leave your comments below (even if they’re negative!).

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TEXT:

Hey my friends, Barry Burns here with Top Dog Trading. Today I am going to show you an RSI Indicator Trading Strategy. I’m going to show you what not to do first, and this is the reason that lot of you are losing money. Let’s stop that right now and show you why it doesn’t work or lot of what you’ve been taught is bull.

Let’s plug the hole here of the money flow out of your accounts and then lets show you how to put it in. so this is the topic for today.

THIS RSI INDICATOR TRADING STRATEGY WORKS FOR OTHER INDICATORS TOO

This approach also applies to any, what we call bounded indicators. Whether they are stochastics, or others. They talk about the indicator getting oversold or overbought. Normally they’ll put the levels at 30 and 70 for overbought and oversold. Now, oversold being 30 of course. Let’s look at oversold first.

I hate that term oversold. It’s used by technicians all the time. So, I know that’s the classic term. When traders hear that term oversold, it implants in their mind an expectation that the market can’t go down any further. That’s the problem with using that term. If it’s “oversold,” it sounds like well then the market can’t go down anymore and it has to go up.

OVERBOUGHT AND OVERSOLD ARE FALSE CONCEPTS

Here’s the problem with that. Any bounded indicator like RSI or stochastic can only go from 0 to 100. Other bounded indicators have other perimeters but the problem therefore is once it gets down to zero or even not, for it to get down to 0, it’s got to be an extremely bearish move. Once it gets down even to that zone or that area, it’s very unlikely that it’s going to go any further. And if it goes to 0, then mathematically it can’t go any further. But the market still can go lower.

The signal is exactly the OPPOSITE of how you may have been taught. No, that’s a bearish signal because that’s showing the strength to the downside.

WHAT ABOUT RSI INDICATOR DIVERGENCES?

Now as you can see here, comes here for price and then price ends up making a lower low after that. So then there’s some people who will say, ‘Oh well yes that’s true.’ So what you want to do is wait for a divergence. So we wait for the higher low on the RSI and wait for that. Sometimes though you would say wait for the higher low to be above 30. And you get a lower low in price and you take that. Again not a great signal. Why not?

It does show a shift of momentum, that’s true. But the problem is that it’s a short term signal. And momentum is kind of a tricky thing, just because momentum is where the signal of momentum is going up, doesn’t mean that’s a real strong bullish. It just means the bearishness has come out.

ONLY TRADE IN THE DOMINANT DIRECTION OF THE MARKET

In this case, the market does go up a little bit, goes back up to 50 MA which is the red line. But that’s not really a major big trade. What happens after that is the market comes down and makes a much lower low. And again RSI gets supposedly oversold. So the point is this, what you’d rather do, so I will get into little bit of what you want to do, you want to do the exact opposite of that. You don’t want to be just buying oversold signals all the time. You want to take those as bearish, and trade in the dominant energy, or the dominant direction of the market.

Why? Because that’s where your big reward is. If you got in somewhere up here, and you got out somewhere down here, you’re making big money. Little risk, big reward. That’s where the big money is, that’s where the odds are too, that’s where better win loss ratio is and that’s where your better risk reward ratio is. If you took this that little divergence thing there, you are trading against that dominant energy. So your winners are small.

So why keep trading against the dominant direction of the market? That’s the point of this lesson today.

PROOF POSITIVE

In fact let’s take a little look in, and see how far they went. There you go. This was our first divergence we looked at here. look how much further it still went down. Here we get another supposed oversold signal. what if you bought that? Not so good. Not much money made there. There is another divergence right. Well that would have been your profit. Really? No. these are signals of strength to the downside. You could have been short whole time. And made some real money, and just held it.

That’s why for some of you, it may seem like you’re always on the wrong side of the trade, that everything always goes against you.

There will be 3 parts of this video, so look for 2 more videos on the RSI indicator trading strategy that will pick up where this one left off.

FREE GIFT!

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other information you’d like about the RSI Indicator Trading Strategy or other topics you’d like me to teach in the future.

Also I am giving away one of my favorite trend trading strategies that work today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

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