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:
Now I will add the signal boxes on RSI:
Right 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.