Using RSI as a sell signal

part of the Simple Approach series

For those that like a simple approach to a trade entry – where the entry can be triggered using just RSI – I bring you an example in $PDH. Here is a basic chart showing price probing prior Resistance at $13:

PDH

Now I will add the signal boxes on RSI:

PDH_RSIRight now a Sell signal exists as RSI pokes above the 70 level. One way to play a short trade is to Buy to Open (BtO) the February 12.50/10 Put Spread (traded at $.25 on Friday). Risk defined, Reward defined as well.

2 thoughts on “Using RSI as a sell signal

  1. Used the 1/17 low of $12.90 as the trigger for the short today. Stock closed at $12.29 with RSI falling to 56.

  2. Pingback: Position Updates - 01/24/2014 | 1nvestor1nvestor

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