Author Topic: RSI (Read 17374 times)

Shali · March 10, 2009, 09:45:18 PM

In looking at all of these stocks that are oversold, I'm thinking the RSI might be a good indicator to help with entry. If I were to use that, I'm wondering at what point to consider entering. For example, I'm looking at a stock now where the RSI is at about 18%. Should I wait until it turns up towards 30%? Crosses 30? Any help would be appreciated

Allen · March 10, 2009, 11:12:09 PM

Shali,
When buying pinchers, that is what I use when RSI 14 crosses 30 . You can also use PPS crosses above PAR SAR and PPS crosses above MA 5 . Usually in that order. DZ and Stretch clued me in on this information. So hats off to them!

Shali · March 10, 2009, 11:24:33 PM

Cool. Thank you

I'm looking at a stock that's extremely oversold. PPS is 3.23 with great upside potential. RSI is 8.45

If I wait til the price crosses the PAR SAR and MA5, it's not going to be the bargain that it is now

Allen · March 11, 2009, 02:50:18 AM

Thats exactly the problem I have. Not all oversold stocks will run (Im talking pinchers here) . The more signals you get the better chance they will run. If you want the most then buy at the RSI 14 signal . You will be closer to the bottom if it doesnt go lower. Somtimes you may think they are setting up for a breakout but they go lower. The only way I know to protect yourself from this is to wait untill it crosses Par Sar. I have watched alot of Stocks when the RSI 14 will cross above and then below the 30 mark several times before they actually break out if they even do break. I suppose another way might be to watch the +Di and -Di , When the +Di turns upward and the -Di turns down thats another indication. Or better yet just ask Doc , DZ or Stretcher ! lol Hope this helps. What stock are you looking at thats 3.23? I like JBLU its 3.45 should cross par sar tomorrow.

Shali · March 11, 2009, 02:03:51 PM

I was looking at JTX. Looks like it may have found a bottom. Just crossed the MA5 but still far below the PAR SAR. Jackson Hewitt Tax Service, second largest in the country, with tax season coming up. However, some financial problems have hammered this down. Could pop. Maybe we should keep an eye on it.

Stretcher75 · March 11, 2009, 02:35:52 PM

I can see this going back around 7.00 in the near future

Shali · March 11, 2009, 11:41:13 PM

Quote from: Allen on March 11, 2009, 02:50:18 AM

I like JBLU its 3.45 should cross par sar tomorrow.

Looks to me like it crossed yesterday. I think we missed the boat on this one

Vegas · March 12, 2009, 12:09:11 AM

Quote from: Allen on March 11, 2009, 02:50:18 AM

Thats exactly the problem I have. Not all oversold stocks will run (Im talking pinchers here) . The more signals you get the better chance they will run. If you want the most then buy at the RSI 14 signal . You will be closer to the bottom if it doesnt go lower. Somtimes you may think they are setting up for a breakout but they go lower. The only way I know to protect yourself from this is to wait untill it crosses Par Sar. I have watched alot of Stocks when the RSI 14 will cross above and then below the 30 mark several times before they actually break out if they even do break. I suppose another way might be to watch the +Di and -Di , When the +Di turns upward and the -Di turns down thats another indication. Or better yet just ask Doc , DZ or Stretcher ! lol Hope this helps. What stock are you looking at thats 3.23? I like JBLU its 3.45 should cross par sar tomorrow.

All good advice Allen... The only thing different that I have found out is that if you wait until it passes the par sar, it is too late for most pinchers... I tested it several times and that was my conclusion....

Another safety valve is to make sure you buy the pinchers and bouncers with settled funds... That way, if they go south, you can bail out the same day if you need to...

Allen · March 12, 2009, 03:01:11 AM

Vegas,
If you have other signals to use when entering pinchers then by all means please share. I am about to pull my hair out trying to figure out a system to use for entry. What do you think would be the most relaible and first signal? Very good discussion here! Thanks for response.

Vegas · March 12, 2009, 11:17:22 AM

Quote from: Allen on March 12, 2009, 03:01:11 AM

Vegas,
If you have other signals to use when entering pinchers then by all means please share. I am about to pull my hair out trying to figure out a system to use for entry. What do you think would be the most relaible and first signal? Very good discussion here! Thanks for response.

I pretty much use the RSI(14) Allen to gauge my entry. I also watch the live stream to try and spot the turning points for buying and selling... Nothing is fool proof in this market... It has become a bit of a crap shoot trying to make a few bucks...

Dzielak51 · March 21, 2009, 11:56:49 PM

Shali, RSI is a great indicator but NEVER use it alone. I use RSI 2, 5, and 14. When the 2 an 5 cross up above the 30 it alerts me. Then usually i wait for the 14 to cross above the 30 for more of a confirmation, along with looking at other indicators and making sure none of them contradict each other.

Shali · March 22, 2009, 02:27:44 PM

Are you talking about pinchers specifically, or just in general? Which other indicators would you be looking at?

Vegas · March 23, 2009, 04:39:00 PM

Quote from: Dzielak51 on March 21, 2009, 11:56:49 PM

Shali, RSI is a great indicator but NEVER use it alone. I use RSI 2, 5, and 14. When the 2 an 5 cross up above the 30 it alerts me. Then usually i wait for the 14 to cross above the 30 for more of a confirmation, along with looking at other indicators and making sure none of them contradict each other.

I like to use the 2 and 5 also DZ but I haven't been able to steal a chart like mine that includes those indicators...

Dzielak51 · March 24, 2009, 03:28:37 PM

Shali...yes thats particularly for pinchers or dead cat bounces. (the RSI 2,5)

shulink · April 09, 2009, 02:32:39 PM

I used to use RSI, but then I change to stochastic, and signals on crossovers.