Waiting for RSI signal to start selling DAX.

FX:GER30   DAX index of German listed shares
Hi Traders,

I trade for 8 years and all these years I have been using RSI which is a free indicator which also does not lag. However, I use him with trendlines connecting with higher highs or lower lows so I can see a signal when he breaks this trendline . As you can see the RSI with those trendlines , everytime he breaks those lines it indicates a breakout and this is exactly what I have been doing with the DAX             for months now.
At the moment, we are very very close to break a trendline on RSI which will indicate that a top might be in place. However, do not use this tecnique as a signal!!! Use as a alert for you to find other reasons to trade. For example, we can also see that the top touched the 0.786% fib which is a very powerful fib. Also we can see on the daily that we are in the top of a channel.
So with all this reasons together gives us a nice reason to short DAX             . I recommend to start trading small, as the market moves in our direction, you can increase your exposure.

Thanks for looking!

Thiago Duarte
Thiago great explanation on how to filter several indicators to take a better Risk Reward trade. Cheers
+2 Reply
Nice. Thanks for sharing!
+1 Reply
Thanks for sharing this info. Very useful.
+1 Reply
looks good ! Not afraid of the possible channel breakout in the long term?
Hi. Thanks for sharing. How effective has this method you use been in the last 8 years?
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