Using RSI – the series

One of the simpler approaches to picking an entry in a stock position is through the use of RSI (Relative Strength Index). Although I do the posts in this series showing an RSI Buy strategy usually, I thought it would be important to show the flip side of that as well – the RSI Sell strategy.

For an example, I bring you the 15 minute chart of $HAIN (a stock I like longer term, this is just for a trade):

As you can see above, the areas noted by the Red Box are recent RSI Sell signals – and we are once again at one right now. The stock has moved nicely over the past week so maybe a rest is in order anyway.

As always, a stock can stay over-bought for a while so no need to rush. This is just a moment where the probability of the trade is highest so it is worth stalking closely.

Leave a Reply

Your email address will not be published.