Posted On: 03/03/2016 10:08:22 AM
Post# of 2561
Re: INSTATRADER #2195
Thanks INSTATRADER
I can't agree with the RSI over 70 being a 'Power Zone'. With 100% accuracy with the so called 'power zone' above 70 actually being overbought, I'm sticking with a consolidation or a pullback until the 'Nose Bleed Zone', as I call it, is back under 70. As always, the bulk of a move occurs on a stock long before the RSI enters the 'Nose Bleed Zone'. As you can see on the chart when MoneyForNothin' first shared it on my board, the RSI was near 50, and the stock was still trading in the .016 level. The stock then moved to .04 when it began to enter the overheated levels of the RSI at 70+. Since then, RXMD did rise another 30% in the 'power zone', but that has been dwarfed by the real move of almost 150% from the much lower 'Non-Nose Bleed' levels of the RSI. The share prices always fall back from the overbought levels of 70+ in the RSI.
I can't agree with the RSI over 70 being a 'Power Zone'. With 100% accuracy with the so called 'power zone' above 70 actually being overbought, I'm sticking with a consolidation or a pullback until the 'Nose Bleed Zone', as I call it, is back under 70. As always, the bulk of a move occurs on a stock long before the RSI enters the 'Nose Bleed Zone'. As you can see on the chart when MoneyForNothin' first shared it on my board, the RSI was near 50, and the stock was still trading in the .016 level. The stock then moved to .04 when it began to enter the overheated levels of the RSI at 70+. Since then, RXMD did rise another 30% in the 'power zone', but that has been dwarfed by the real move of almost 150% from the much lower 'Non-Nose Bleed' levels of the RSI. The share prices always fall back from the overbought levels of 70+ in the RSI.
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