cardwell-style-rsi — Check out the trading ideas, strategies, opinions, analytics at absolutely no cost!. The “Cardwell RSI Positive/Negative Reversal Patterns” not only identify trend changes, but also help set future price objectives in the direction. In my research I came across Andrew Cardwell who was said in a few places to be the person who really refined RSI analysis to get the most.

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They say, “Well, I know relative strength. Good Luck, it is there for the making! I’ll be doing one in New York in February. The caardwell of RSI indicator is to measure the change in price momentum. The better you learn to play a game, the more fun the game will be. I have some who study basically Fibonacci caardwell and they say what you’ve shown in your range rules when I see a certain range being tested like the 40 and it should be support then it complements what I’m doing in my Fib work.

We’ll see you up in New York City. I’m viewing it as an overall topping pattern. Many students have gone from being initially part time traders, to trading fulltime for a living and some onto money management.

My personal approach is what I called DH5—daily, hourly, 5-minute.

As long as with these positives I’m seeing these objectives met on the upside, see bearish divergence form, I take some profit, see a correction, add to the position. The ability of a trader cardaell recognize a trend change quickly, reverse a position and trade in the direction of that next trend is the skill that traders must develop to be successful, said Cardwell.

It could be the fiscal cliff talk, the euro crisis, people worried about the tax structure, how much are they going to pay, what’s Obama Care?

Using RSI to Find Great Trades

I think there’s a lot of market situations that are developing. The above chart indicates bearish range which is highlighted with the help of red box. I’m then able to take the difference and add it to the last high and suggest new targets in the future in the new uptrend and say it’s still going in that direction.


Speculative attacks on markets have been thwarted repeatedly by the various interventions of governm However, in strongly trending markets, multiple divergences can and do develop, which only lead to corrections of the overbought oversold condition of the market. Welles defined—when he developed the RSI—it was a period. You get a chart and put it in front of a couple of people.

None of this information is meant to be a recommendation to buy or sell any security mentioned here. Check it out at moneyshow. I will use these charts in this series so get familiar with them. It can stand as an independent trading model, and that’s what I’ve taught my students in my courses.

Although not written in book form, the material in the course was presented in a trading manual and reference format.

I contacted him to see if I could learn more about how to use the RSI. If you start to bend the rule—the worst thing a trader can do is be successful right out of the gate because then they think they did it on their own and they know what they’re doing and the next time they’re not following the rules. I or my affiliates may hold positions or other interests in securities mentioned in the blog. You know yourself that not all stocks follow the trend of fardwell market.

Well, I use period on a monthly, weekly, daily, hourly, minute chart, 5-minute chart. If I’m cardwe,l for these or for these filters, then I have a list of which issues. When you think, “I can’t take anymore,” that’s usually when the market made a bottom and turned up. This site uses Akismet to reduce spam. It’s a trend following, trend identification approach with oscillators knowing when it’s overextended taking profits.


It is considered overbought when it goes above 70 and oversold when it goes below Next green box catdwell the chart indicates super bullish range under which Carfwell tends to oscillate between the range of I’ve always used three keys to success I talk to people about when I give a presentation—methodology, patience, and discipline. A lot of my trade cqrdwell come actually from my course students. I know I learned a ton from my time working with Andrew and hope to pass a little along here as well as give credit where credit is due.

I probably started using it by reading Murphy and other Technicians talk about the classic indicators. So we had a sharp selloff right after the election that took us down in the mid-November. I’ll sometimes take that tradeoff, let it correct back, and I’ll probably enter a little bit higher than I did the first cardwwll.

Using RSI to Find Great Trades

Positive and Negative Reversal Patterns. I’m glad we had the time. The default setting for Relative Strength Index is 14, but you may change this value to decrease or increase sensitivity based on your requirement. Cardwell said most traders who use the RSI focus their attention on trying to identify bullish and bearish divergences.

But you get a feel based on experience, based on trial and error over the years like I did to establish rules and patterns and everything. Try and understand what the market is showing you. In the end I got a lot more than just a seminar on RSI. We saw positive reversal targets. I’m going to run a scan or a filter and say which stocks are in the above 40 RSI, have not been below 40 in, say, the cqrdwell three to four weeks.