ES Journal Archive (2006 - 2008)

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why is this overbought? because of the absolute level of rsi? i thought this doesn't matter.

i don't see a shortgrail.


Quote from Buy1Sell2:

Daily ES Chart
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Quote from m4a1:

why is this overbought? because of the absolute level of rsi? i thought this doesn't matter.

i don't see a shortgrail.
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That is why I said we might see a pullback and then more upside. A market is overbought above the 70 RSI line, but it in no way indicates a reversal just because of that.
 
Quote from m4a1:

i guess you're saying rsi was in high 60s at that time too. so what do you consider an overbought rsi number for weekly?
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I consider it overbought above 70, but I recognize that in strong trends it won't matter much. You need to see the divergence/failure swing at 70 or divergence and a move below 70. That is typically what I am looking at when I look at 70. Some traders believe in selling right above 70. I don't agree with that unless you are building a position from a small base position.
 
do you see the divergence/failure swing on the daily? i guess i don't understand why you think the daily is weak but the weekly is strong. what's the difference? both have rsi at around 70, both are trading at top of their price bands, and both don't show a short grail.

Quote from Buy1Sell2:

I consider it overbought above 70, but I recognize that in strong trends it won't matter much. You need to see the divergence/failure swing at 70 or divergence and a move below 70. That is typically what I am looking at when I look at 70. Some traders believe in selling right above 70. I don't agree with that unless you are building a position from a small base position.
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