Saturday, October 14, 2006
INDU Daily, an RSI study
Hey, how 'bout one of my own charts? :) Here's a study with "Fisherized" rsi and a classic, but fast (7-period) rsi.
There is already a negative divergence of the rsi related to the current high with respect to the rsi from the prior high (5/10/2006). It could resolve itself two ways:
(1) bust thru the prior resistance line
(2) reverse
The inflection window for either would be 10/17 - 10/20.
The Fisherized rsi is useful for hot trends, where it will stay pinned (OB or OS). It is a "do not fade til you see the whites of their eyes" type of thing. Even a "dip" below 98 could be just that, a dip. Full disclosure: I'm still only day-trading and using Daily charts for "big picture". I gotta say, though, I kinda miss swing trading sometimes.
PS-- not going to go into the rest of the chart voodoo, except to say you'll recognize the
Alan Box (Yellow is an annual),
rabbit's xSwing "big bollie" of 180, showing big time hot trend as price is riding high above it, and VolSum extremes, the Green/Red little arrows.
Labels: chart-analysis, Dow-INDU, indicators
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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