using RSI as a Buy/Sell signal

part of the Simple Approach series

One of the Earnings reports this past week was in $PVH Corp. The reaction was negative and it ended the week unable to overtake the $120 level. For those traders with no position, consider this Daily chart:

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Above you can see that RSI is probing the key 30 level. Notice what happened to price the past 2 times it probed this level. Using RSI as a Buy signal it looks like a spot to initiate a new long position. Use your own Stop setting according to your process.

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