The RSI Signal – the series

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It has been a while since I have done one of these posts so I thought I would pick one from the chart review today and have decided on $BSX (Boston Scientific).

For those that may be new to this series of posts, let me give a quick overview:

  • This approach uses RSI to signal a buy or sell entry
  • The signals trigger on a touch at RSI 30 or 70
  • No other indicators, moving averages, trend lines etc are used as this is a mechanical approach
  • Once entered, use your own stop management/exit rules

I bring you the Daily chart of $BSX:

The Blue boxes show the long entries that could have/could be made and the Green boxes show the RSI signal trigger point. One additional thing I will note here is that price is outside the lower Bollinger Band so traders that use that signal will show up here as well.

  • Noise trader

    What are your management/exit rules?

    • dwmuniz

      Not able to answer that question in a general way. It depends on each trade as to how I will manage the entry, any option activity that occurs during the trade, and then how I exit it.