Dear Traders

To me, RSI is a fascinating and dynamic indicator. Others may consider it a momentum oscillator only, which works more effectively in a range-bound market, but trust me, it can give you significant signals even in trending markets. If you dont believe me, at least believe Andrew Cardwell, who has said, I havent found anything in over thirty years of work that can hold a candle to what RSI can do.
Most of the other indicators like moving averages are lagging indicators, as they lack predictive power.
On the other hand, RSI is a leading indicator which can give significant clues about future prices, if we have the ability to decode them.
I call RSI magical, because it can predict prices, because it can tell us where to get in and where to get out.
In a nutshell, these are some of the most important things RSI can tell us:
-RSI can tell us whether the price is likely to go up or down (momentum).
-RSI can warn us through divergences, when a trend is beginning to change (slowdown of momentum).
-RSI can give us trend continuation signals through positive and negative reversals (Andrew Cardwells brainchildren).
-RSI can even help us set price objectives for negative and positive reversals (again Andrew Cardwells discovery)
-RSI can pretty accurately tell in advance whether a breakout is going to happen in a channel or a pattern (because it is a leading indicator)