Hi Ger,
Glad to hear from you.
I don't think I would say if RSI does this then this is going to happen with price however I do think that you can get an indication of what is happening with price right now by looking at the RSI.
If the RSI is high and rising that simply means that the momentum in the market is increasing and vice versa if it is low. With this in mind generally when traders want to try and guage what may happen in the market in the future by looking at the RSI, they will look for something that indicates a change in the current behavior of price that could be indicative of what is about to happen with price in the future.
An example of this would be a divergence where price puts in a higher high for example but the RSI does not. If the market is trading higher in a healthy manner that one would expect to continue then momentum should be increasing into the move. So if the RSI is falling while price is rising, this is indicative that the market may be running out of momentum and may be a good time to exit long trades and potentially enter a short trade depending on what the strategy is that one is trading.
Lastly, as I talk about in many of my lessons, it is important to keep in mind that indicators are just that, they are ment to give you a read on what is happening and a piece of information that you can combine with other things you are seeing to formulate a potential information edge that can be exploited for profit.
Hope that helps.
Best Regards,
Dave
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