There have been many requests for me to continue posting instructional charts and technical indicators for those that are not yet familiar with them yet. This is primarily due to the discussions over the last 2 weeks about the mis-termed 'Power Zone' of the RSI in the 70+ area, especially when accompanied by the overbought levels of the FullSto and MACDs. Once again, I am not bashing a stock or any individuals if someone posts messages over here which contain misinformation or using technicals that they mislabel or misread. I will correct them, but that is not being negative, just correction of explanations which are false. Please link back to our comments about the RSI over 70 as it is NOT the power zone where one should enter. That will result in bad entries approx 95-97% of the time.

I'll post three charts, TXMD, RXMD, and EFFI, relating directly to the RSI of 70+, and you will perhaps begin to understand why, imo, it is the Nose Bleed Zone and is screaming "Sell some or all of one's position" if you are a trader. If you like to hold your solid, long term stocks and ride out a decline, as I have been doing with IORG due to the difficulty of buying back a sizable position due to illiquidity, then that is one's own decision. In stocks that I swing trade, I always use the FullSto and MACDs while keeping an eye on the RSI, which is a slower and lagging indicator.