The RSI (Relative Strength Index) oscillator is one of my favorite momentum indicators for one main reason: It isn’t something that moves easily.
For instance, a lot of indicators act too quickly and give too many false signals. But the RSI takes a lot of pressure and strength to trigger a signal, which makes it more reliable.
And right now, the RSI oscillator is diverging with the market. Not only that, but it’s also pointing to an extremely overbought market.
And other measures of market internals confirm that. In the Nasdaq, for example, 91% of stocks are trading above the 50-day moving average. That’s a historically high reading…
Today I’m going to show you the best way to use the RSI oscillator and what it’s signaling now.
The RSI is signaling that the massive gains we’ve seen over the last year are not likely to continue, but that’s not a bad thing…
There is still plenty of money to be made if you use the right strategy.
Check out my strategy what makes gains in any market.