Basic RSI Course – Andrew Cardwell

I. Definition of Relative Strength Index (RSI)

II. Calculation of RSI and Time Period Selection

• Short Term
• Intermediate Term
• Long Term

III. Parameters of RSI for Trend Analysis

• Value of RSI
• Normal Range
• Bull Range
• Bear Range
• Overbought / Oversold

IV. Divergence and “The Signal Count”

• Momentum Highs/Momentum Lows
• Bullish
• Bearish
• Degree of: Short, Intermediate, Long Term
• The Signal Count

V. Positive/Negative Reversals

• Positive Reversal vs Bullish Divergence
• Negative Reversal vs Bearish Divergence

VI. Basic Trend Analysis Guidelines

• Uptrends
• Downtrends
• Moving Averages

VII. Moving Averages

• RSI Value
• Close Price
• Simple (S), Weighted (W), Exponential (E)
• Suggested Values for Moving Averages

VIII. Bullish Sentiment

• Up Trends
• Down Trends
• Trend of Sentiment

IX. Time Cycles (Days, Weeks, Months & Years)

• ******
• Measurements
• Coincident Cycles
• Helpful with 4, 9, 13, 26, for Positive & Negative Reversal Windows

• X. Price Cycles of Range or High/Low

• Calculated on Range (Week, Day, Hour)
• Retracement of 50%
• Gann: 1/8th, 1/3rd
• Fibonacci: 38.2, 61.8

I. Divergence Patterns

• Bullish
• Bearish

II. Reversal Patterns

• Positive Reversals
• Negative Reversals

III. Hidden Signal for Intermediate Trend Change

• Bullish Divergence
• Bearish Divergence

IV. Overbought / Oversold

• Up Trends – Intermediate to Long Term Support
• Intermediate to Long Term Positive Reversals
• Intermediate to Long Term Top Bottom Positive Reversals

• V. Oversold / Overbought

• Down Trends – Intermediate to Long Term Resistance
• Intermediate to Long Term Negative Reversals
• Intermediate to Long Term Bottom Top Negative Reversals

I. Naked Signals

II. Enhanced Signals

I. Up Trends Down Trends

II. Down Trends