Andrew Cardwell – Basic RSI Course

Where the RSI EXplained is an introduction, like a piece of cake, The Basic RSI Course is like having the whole cake and the recipe to bake another one.

Course Outline:

A. Basic
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

B. Pattern Recognition
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

C. Price Targeting with Positive and Negative Reversals
I. Naked Signals
II. Enhanced Signals

D. Trend Analysis and Trend Change Checklist
I. Up Trends Down Trends
II. Down Trends