The latest Tweets from andrew cardwell (@cardwellrsi): “When the RSI shows and tells me something I have learned to listen over the last 40 years. And my. The ideal technical indicator, according to Andrew Cardwell, Jr., is one that offers capability to identify and monitor the current trend, highlight overbought and. View Andrew Cardwell’s profile on LinkedIn, the world’s largest professional Analyst and trader known for my RSI Positive/Negative Reversals for price.
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Cardwell RSI Edge | Andrew Cardwell | Relative Strength Index
vardwell Welles Wilder, which measures the speed and velocity of price movement of trading instruments stocks, commodity futures, bonds, forex etc. The objective of RSI indicator is to measure the change in price momentum. It is a leading indicator and is widely used by Technical Analyst over the globe.
It is considered overbought when it goes above 70 and oversold when it goes below Moreover, RSI can also be used to look for failure swings, divergences, and centerline crossover. The default setting for Relative Strength Index is 14, but you may change this value to decrease or increase sensitivity based on your requirement.
When the stock in a bullish phase, it oscillates in the range of 40 to On the other hand, cardwll a stock is in a bear phase then it oscillates in the range of 20 to You may do NSE Academy Technical Analysis course to learn the various aspects of Technical Analysis and to also learn trading strategies cardwll trade in the real market.
The following are 5 types of Relative Strength Index cardwsll that help to determine the trend of the underlying asset. Hence, we should avoid trading when Relative Strength Index is under sideways range. Based on the above discussed Relative Strength Index or RSI range parameters, one can easily trade the underlying asset.
This logic goes well with all types of charts whether it is Index, Stocks, Commodities, Currencies, etc.
RSI Indicator “Cornerstone” of Andrew Cardwell’s Trading Model
Moreover, in the above range shift scenarios, we have taken an additional range of 5 points i. Hence, a 5 point cushion in the RSI range is taken. Now we will apply this range shift phenomenon in the charts and see its utility in order to maximize the gains and to book our position.
The above is the monthly chart of Reliance Industries where we will understand the Bullish range, Super bullish range, and Sideways range. The bullish range is defined with the help of blue box where RSI tends to oscillate between the range ofwhere 80 is an overbought condition and 40 being the oversold condition.
Andrew Cardwell | Cardwell RSI Edge Courses | Relative Strength Index
As seen in the chart, whenever RSI touched 80 zones, price tends to slow its momentum carswell turns down. Next green box in the chart indicates super bullish range under which RSI tends to oscillate between the range of It is clearly evident that the stock is getting ready for the strong upmove.
However, the sideways market is rssi with the help of red box where the RSI tends to oscillate between 40 to zones. Here the stock price is expected to move sideways and the trader can witness a lot of whipsaws.
A comprehensive study on Support and Resistance. The above chart indicates bearish range which is highlighted with the help of red box. Here Relative Strength Index tends to oscillate between the range of to 20 zones where is an overbought condition and 20 being the oversold condition.
Lastly, the above chart indicates super bearish range where the RSI tends to oscillate between range and it suggests the strong down move is very likely in the coming days. Relative Strength Index is a versatile indicator using which we may find overbought-oversold levels, positive and negative divergences, failure swings, etc. In general, RSI overbought conditions signals ripe for a reversal, but overbought can also be a sign of strength and vice-versa. However, just like other indicators, the signal quality will also depend upon the characteristics of the underlying security.
RSI should also be used in conjunction with other indicators and technical parameters to generate better and more confirmed trading signals. To know more about the use of StockEdge, you can watch the video below:.
The app also provides an opportunity to club RSI strategy with other indicators, volume, and price patterns base strategies on EOD basis to develop more confirmed signals. No strategy, stock, commodity, fund or any other security discussed here is any way a recommendation for trading or investing.
Please take advise of certified financial advisers before trading or investing. Let us know what you have to say: This site uses Akismet to reduce spam. Learn how your comment data is processed.