This RSI has a couple modifications. It works with bullish and bearish control zones and implements both a 12 EMA as well as the "magic" 89 Moving Average.
First, the ranges. Whenever the RSI moves above 65 the bulls are in control.
Whenever the RSI moves blow 45 the bears are in control. Everything in between in neutral. Traders can use these levels for information on strength of either bulls or bears and also for support and resistance .
Both EMAs are best used for crossovers, as well as support and resistance .
The idea for the "magic" 89 moving average, originally stems from Fibonacci values that some traders like to use for support and resistance on price.
From observation, it holds more information though, when used as a moving average of the RSI and in combination with a 12 EMA .
When the RSI crosses above the 89 moving average, it can be interpreted as a potential shift in trend up. The 12 EMA then shortly afterwards usually confirms it by also crossing above the 89 moving average.
The 89 moving average can also signalize a potential shift in trend coming up when reaching 70.
The magic MA works best on timeframes like the daily and upwards.
For more information about the indicator feel free to leave a comment.
First, the ranges. Whenever the RSI moves above 65 the bulls are in control.
Whenever the RSI moves blow 45 the bears are in control. Everything in between in neutral. Traders can use these levels for information on strength of either bulls or bears and also for support and resistance .
Both EMAs are best used for crossovers, as well as support and resistance .
The idea for the "magic" 89 moving average, originally stems from Fibonacci values that some traders like to use for support and resistance on price.
From observation, it holds more information though, when used as a moving average of the RSI and in combination with a 12 EMA .
When the RSI crosses above the 89 moving average, it can be interpreted as a potential shift in trend up. The 12 EMA then shortly afterwards usually confirms it by also crossing above the 89 moving average.
The 89 moving average can also signalize a potential shift in trend coming up when reaching 70.
The magic MA works best on timeframes like the daily and upwards.
For more information about the indicator feel free to leave a comment.