|
PureBytes Links
Trading Reference Links
|
Hello Realtraders,
I am new to the list, so please be gentle! My current study deals with
the use of the RSI divergence signal as a prelude to the resumption of
trend. As Mr. Cardwell states, "bullish divergence is bearish", etc..
Although I love to use this signal to confirm the reaction phases (ala
Elliott!), I am most interested in the price projection capabilities
offered by the channel formed in the RSI. It is the same "action" one
sees with the Wolfe Wave technique. When a bullish RSI divergence
occurs inside of a downtrend, the price becomes "boxed-in"! At this
point, there is a geometric correlation that exists between the price
and RSI channels that should allow one to predetermine not only the
entry point (to resume trend) but also to estimate the price target of
the swing to follow.
If anyone can direct me to the source for this calculation or share
their experience with this area of study, I would be most grateful!!
Regards,
Scott Johnston
|