Getting Started with Technical Analysis | Could RSI Be Your Go To Technical Indicator?

good afternoon everybody Welcome to our

getting started with technical analysis

webcast today I'm Connie Hill happy to

be here and share some things with you

I'm happy to see you being here as well

we're going to talk about an indicator

and the use of an indicator that might

make you feel a little bit uncomfortable

all right we like to be comfortable when

we're trading when we're analyzing

charts but this one might make you feel

a little bit uncomfortable and I'm good

I'm good with that we'll talk about it

as we get into

um I see a question in the chat that I

going to answer real quickly here Kathy

uh said are the DMI positive and

negatives the same that we talked about

last week the same as the RSI the answer

is no and we're going to talk about that

so I don't know you're into my Brave W

uh Brave my brain waves there Kathy we

must be in tune with each other let's go

through some uh disclosures then we'll

get down to business uh before I get to

that disclosure I hope you're following

me on X my handle is not written here

for you but it is Connie Hill CS okay

and you can uh follow us we'll put

educational cont content out there

things that we think that we find

interesting that we think you might find

interesting as well we will share those

with you what we talk about today is

intended for educational and

informational purposes only don't

consider at a recommendation of any

particular strategy or security we are

going to be using using technical

analysis inter session today because it

is getting started with technical

analysis uh however keep in mind Schwab

recommends that you use additional

things Beyond technical analysis for

your research past performance is not a

guarantee of future results or success

investing involves risk including the

risk of loss we will be using the paper

money downloaded fer swim software today

it's typically what we are going to be

using in most of our webcasts it's the

most robust version and I know some of

you are trying to get the hang of it and

so be patient with yourselves as you

start learning it it's powerful program

I remember kind of going through those

beginning stages with it but I love it

okay don't want you to take it away from

me now it's like you know I've got my

little sugar fixed here I don't want it

to

go all right today we do we are going to

talk about technical indicators and

actually the one that we're going to

focus on today is

RSI relative strength index all right

and we'll talk about a little bit about

some of the differences of some of the

technical indicators that we see and we

are going to look at a lot of examples

out on paper money all right let me just

check the chat here real

quickly oh it looks

like we've got Lee Bohl in the chat

welcome Lee I'm happy to see you here

he's going to help me answer your

questions

something I can't get to Lee will have

my

back all right Trend indicators and

oscillators okay there are so many

indicators if you go to your studies on

your charts and you pull up that

alphabetic listing there are a lot there

and it can be confusing and I'll tell

you you don't need to use even half of

them or a quarter of them okay there

might be some that you just latch on to

that you feel comfortable with and maybe

those are the ones you use that's not a

problem now we have some oscillators

that are either Trend well we have some

studies I should say that are either

Trend indicators or

oscillating uh indicators also known as

momentum indicators

okay Sometimes some of these indicators

will be placed along with the price okay

that might be like for a moving average

right you see that very commonly up

there with the price and then we'll have

some that their own pain and their own

measurements okay and they might be this

one on on the slide here is the

macd H with some different settings and

it is definitely in a different area in

our chart structure having its own

ranges that are a reaction or um come

from some division of the price some

some of them most of them are based on

price some of them might be uh based a a

little bit on volume as

well all right so the RSI the one I

wanted to focus on here

today is a is a fairly popular

indicator uh it's something that you'll

probably run across if you do some um

reading in some of the technical books

you'll see that it's one that

technicians tend to favor we're going to

talk about maybe why they might favor it

or find it useful to use uh Wells Wilder

he was the one that came up with this

indicator and he's come up with several

really good indicators he also did our

DMI from last week but he was trying to

solve for two problems with this

indicator uh one

was the fact that there could be some

extreme movements in the RSI when a

number dropped off so for say for

example say we have a  period that we

use with it and let's say

an old day  days back there was a

really big move when that th day drops

off and the new day comes on they would

see a big swing and he was trying to

help smooth out that swing and then he

also wanted to have a fixed range he

wanted it to go between zero and and 

in that fixed range and so the RSI as he

developed it meets those qualifications

uh we're going to be using a  Line and

a  line and so you can see maybe here

just a little bit you can see a  and a

here and basically those are the

extreme points above

so  and up up to  would be

considered an overbought area  and

below is considered an oversold area you

might be used to some oscillators that

are  and  uh this one starts out at

and although it can change but we're

not we're not even going to talk about

that today all right so let's do this

let's go ahead and I want to jump out to

our thinker swim and I want to backtrack

a little bit first I want to talk about

our two trades that we did last week

with DMI and Kathy had posed the

question at the very beginning of our

class wondering are they the same as

these lines on the RSI and they're

totally different okay uh let's jump out

there right

now

so we'll come

here and some of you I know really like

to dive into things all right and you're

interested in the details and there are

other others of you that are just kind

of like uh just kind of show me the

basics I don't need to know the formula

for it okay one thing I wanted to do is

look at our two trades from last week

with the DMI and I do have the DMI on my

chart I got rid of volume because I

didn't want to focus on it so

much and uh let's just kind of revisit

what the DMI is the directional movement

index we have a green line and we have a

red line and if the green line is is

moving and is above the red line we that

would say that we're uh having bullish

that the bullish trend is stronger if

the red Line's on top top then the

bearish trend is stronger so if we're

just looking at the SPX here today the

red is above the green right now so that

would give us an idea that okay the

bearish trend is the dominant Trend and

then this black line is our adx line it

gives us an idea of the strength of the

trend so bearish trend is the dominant

one because Red's on top then the number

corresponding to the adx looks like

right now it's  and some change and

really we want to see it above  to

indicate that that is a strong Trend

right now would' say it's kind of a weak

Trend maybe it's starting to go a little

bit sideways not making progression up

or down and that's kind of how we might

interpret it now last

week one of the trades we got

into was

VST all right I had some questions come

in some of you may have been the ones

that posed the questions to me out in

the comment section out on YouTube it

could have been some of you that uh

wrote to me I've written back to you but

I also think your question was really

valid that it would be worth just kind

of revisiting here a little bit so as we

look at VST when we got in last week it

was what

May th or May th

I've switched my calendar over to June

so I'm not positive on that so here's

the

th and so we got in one of these days

all right because here's today here's

Monday here's Friday Thursday Wednesday

Tuesday so actually the day that it hit

this High here was the day that we got

in and there had been kind of a move off

the DMI going up now as long as the

green stays above the red we would stay

in the trade all right what's happening

today though yeah look at this I'm going

to zoom in here really tight and I want

you to see well just in those few

days they actually today it's the green

has crossed down below the red

indicating the Red's on top it is the

more dominant Trend and our adx line is

up here at  indicating it could be

fairly strong right because it's above

we'll see what Direct Direction this

adx line goes looks like maybe it's

headed down meaning lower reading maybe

the strength isn't as strong if it

continues to go down down down however

it would still be the dominant Trend now

we stay in the trade until we get that

crossover trading day isn't over yet but

it's going to be soon all right so we're

going to make a decision on this and the

decision is going to be we are going to

exit the trade because we're following

discipline plan we're following the rule

that when we have the crossover that's

when we get out we don't think about it

for a day or two we don't say well I'm

seeing this and that and the other on

the chart it's uh it's just we see that

cross we're going to take action now

some people might want to wait truly

till the end of the day okay they might

want to say well let's really make sure

it's there when the market closes and

then take action and because we're not

going to be sitting here after the

market closes we're not going to be

together hanging out we're not going to

be able to do it so we're going to do at

least our best here with knowing that

the crossover has occurred and we're

towards the end of the trading day

although we've got a couple of hours

left okay so we're going to exit the

trade uh you can see we had estimated a

stop on this uh of where we just kind of

estimating maybe the price would be down

wherever when they crossed and we

obviously don't know that so our stop

loss was clear down here and really if

we just let it flow let it go I mean

this price could come back quite a bit

before actually hitting that stop loss

so we're going to go to the monitor

Tab and we are going to find

VST I've actually got it in here

for let me go back here for just a

moment

okay so it's the th that we got in

to 

shares and uh I just wanted to make sure

be that I'm in the right spot because I

have two VST trades okay that's why my

going back and double checking thing

because this VST trade is for  shares

so that's a different one and so our

VST I'm not seeing the VST for our 

shares now I might be being a little

bit blind but I'm not seeing it

here

um this one the  this is actually

the one that we see on the screen

so let me go back here just kind of do a

check okay so the stop loss that we have

in there actually is for that other

trade it's not for this one at all you

can see over here we don't have an order

we do have an alert for if the price of

the of the stock changed to hit and then

I did something different H which was

somebody said could we not put on an

alert to tell us when the DMI positive

crossed below the negative okay so went

out and I was like oh yeah we could do

that we didn't show you how to do that

this week well we are going to show you

that today and that's actually what the

alert is right at this moment so let me

take a look here at the chat see what

questions I need to answer here the adx

line is for the

strength uh of the DI positive or

negative okay so you can use it without

the DMI you could just use adx alone for

strength of trend you could put that in

your

Chart good question so the DMI plus

crossing over the DM minus is a b signal

yeah absolutely sand deep uh R says if

the green DMI is below the adx line

doesn't mean anything let's go back to

our chart see if that's the case

here

um I think that is the case here that's

why I think you're asking this

here uh does it mean anything we're just

looking at the numbers okay so the

number here right now is  on the ad X

anything  or higher means that it's a

strong Trend whichever one is on top

whether it's the green on top or the red

on top I I wouldn't worry so much about

it if where this black line is in

relationship to the green or the red

lines okay I kind of think of it as as

is it

own indicator being shown on the same

pain okay you kind of think of it that

way okay Sand's letting us know that

date yeah was the th thank you sandep

appreciate that all

right uh let's go through the process of

a couple things one setting an alert the

other

one um that we traded last week was

Nvidia Nvidia we had seen a recent cross

and then we saw a flare a flare of the

green line and the red line so if I come

over here to the

th let's see okay it was that day

there so let me just kind of zoom in and

on the th it was this day here when it

actually hit that Peak on the

green that was our entry date and I

didn't mark it but we can see it hasn't

crossed over the green is still above

the red so we stay in the trade but why

don't we set an alert let us know if the

uh cross over occurs and we could also

set a stop on it so I want to show you

the functionality of both of those those

things all right that was the question

that some of some of you wrote in and

asked me about can't we just do an alert

on that can't we just do an exit on it I

didn't show you that last week but I

will right now

so let's come over to Nvidia it doesn't

have an alert on it uh I told you on VST

we were just going to close it out so

let's just go ahead and close it

out create a closing order we're not

even going to put it with a stop we're

just going to go we want it to execute

right now maybe we can get a little

closer to the midpoint price sometimes

paper money is nice to us sometimes it

isn't okay

now on

Nvidia uh what I want to do is I want to

right Mouse click and say create

alert uh let's

see I am not seeing that an opportunity

maybe let me try it from the

chart get the right chart up

here and I'm just going to do a right

Mouse click create

alert uh typically it's thinking it's

going to be on the price of the stock

but we're going to change it okay so

we're going to change it from Mark to

study and then uh because I was out here

playing with this it is showing me DI

plus crosses below D

negative and I set that on VST I didn't

show you that but in yours you you

probably don't have that so what we're

going to do is we're just going to say

edit and then

here

uh we want to this is looking a little

bit different than how I did it

previously let's just do an edit here

we'll stay on the condition wizard we're

going to say it it's not going to be

based on a simple moving average we're

going to change it okay so here we're

going to do and not a simple moving

average we're going to do a study and

then we're going to type in

DMI grab our

DMI and then we're going to say the

di+ what do we want we want it if it

crosses

below select the condition we're going

to go back to study this is a lot of

steps I know

DMI right so we'll bring back our

DMI and then we want it to cross below

the DI

negative okay so positive Crossing below

negative here kind of tricky we'll go

ahead we'll hit save then we can receive

a notification if that occurs right the

alert will go off you could if you

wanted you could also set that up as a

cell signal okay let's do that real

quick so let's go back to monitor let's

go back to our two whole shares that we

bought we know a big stock split is

coming up next week we're going to say

create a closing order let's go ahead

and just choose with a

stop and then over

here we are going to

do need to do this

GTC and we need to mark this we're going

to go into the

conditions we're come over here for

symbol and instead of Mark like we

usually do for the price we're going to

come down to study and because we

previously did the DMI my Crossing below

the DM the DM positive Crossing below

the DI negative it is there but we could

also say all right let's go choose it

specifically because this is what you

would have to

do add it we're going to addit it here

well let's see Di positive crosses below

I negative we actually it picked that up

from setting the alert there okay so you

could choose that or if you need if you

didn't have it get the edit and then

come out here and choose the study of

DMI and then di positive crosses below

di

negative okay that is a lot of steps I

recognize that this is getting started

with technical analysis which means a

beginning type of class and what I just

showed you I would say probably falls

into the intermediate range okay I know

some of you are ready for it some of you

might not be okay so you might go okay

just just knowing how to use the study

it's good for me all right so we're

going to hit

save and we're going to hit confirm and

send and it says study based orders

carry special risk that's fine and then

it's going to trigger a market order

Market order doesn't have a set

execution price nothing's guaranteed

there so just reminding us of that we'll

go ahead and hit send all right let's go

back to the chat here and

see is there a scan that shows these DMI

crossovers for all the stocks asks

art there's not a scan that I've created

nor one that I'm aware of that's you

know already pre-built for that however

it wouldn't surprise me if we could okay

I won't get into that today but if you

go out to the scan

you come out to add a filter come down

to

study and then my guess is DMI will be

in there somewhere

okay back to our chart all right other

question so uh Kathy says we covered the

Mii scan in last week's class we

actually did didn't we thank you Kathy I

stand corrected I did show you a little

scan go look at last week's class I'll

have a link in the comment section of

YouTube I'll put uh some information in

there okay or a link rather to that

class I'll have it here in today's class

description if that's the easiest way

for you to find it all right RSI I'm

going to add RSI here Kathy Kathy and

others that were wondering about this

how do you get it type in

RSI rather than relative strength okay

there it's the RSI is an abbreviation

for relative strength index but it's

totally different than the relative

strength study the relative strength

study typically would compare say Nvidia

to the s&p and we'd see which one is

trending more strongly okay compared to

each other and so on here type in

RSI all right go ahead and we're going

to choose it I'm going to bring it on

here for a minute we'll look at it with

DMI and then I'm going to drop the DMI

but I want you to see that how different

these are from each other okay I'm going

to hit the gear because I'm going to

make it look a little prettier all right

I want it to look a certain way so

typically the default period is

 days if we're looking at a daily

chart  weeks if we're looking at a

weekly chart the bigger the number you

put in there the more

smoothing might take place uh now Wells

Wilder

said that he's one that created it he

knows how he wants it how it works right

he suggested using if you're going to

change that  period doing it in

multiples of seven so if you wanted to

elongate that period of time use a  or

a  if you want to go a little smaller

you could go

 or nine

okay it's what he said we're going to

leave it plain vanilla  here today but

I know some of you like to know some of

those nugget so we're going to tell you

and then here we have the RSI line I

want you to be able to see it really

clearly okay so I'm going to change this

from a one to a

three on our

oversold we're going to change that to a

three and that purple color is fine and

here the overb area which is  or higher

we're going to put a purple line there

as well and you can see on here what I

mentioned earlier that the overbought is

or higher oversold is  or lower

sometimes you know oversold or

overbought has a negative connotation

with it if we see something then we say

oh it's crossed the  it's

oversold really it means buyers are

really in control and they remain in

control till in this case the RSI drops

below  okay all right now I want you

to see these together so RSI is down

here and the and the uh DMI is up here

and they are totally different

measurements you can see here uh this

DMI plus is at

the red DMI minus is at  the adx is

at where is that right now  is okay

and then the RSI line looks completely

different all right we're going to drop

the DMI come to our studies exit

out and here we go again I'm leaving

volume off here because I really want

you to be able to see the RSI really

well here now I've got Nvidia up

obviously we already talked about it set

up a a an alert and a close if those

were to cross but now drop all DMI from

your mind okay we're going to focus on

RSI here now RSI some people may use uh

for example going above the  line when

it's been down low coming up and out

from underneath the  some people may

consider that an entry signal if it

we're not where's our  our  is right

here this purple line or if it the RSI

drops below  okay some people might

consider that for an exit signal if it

has already been above

now the other thing we look look for

there's a lot of things we're going to

look for on this RSI you're going to

dream about RSI tonight in the different

ways we could use it uh you can see here

on the RSI I drew in what I drew in here

a trend line and I connected the peaks

of the RSI through this period of time

and what we see here is yep we had that

diagonal resistance line and then what

happened

RSI broke above it okay so when it broke

Above This resistance here some people

I'm I'm going to say that maybe want to

be a little bit more aggressive in their

approach may have considered entering at

this point okay because it was above the

and it broke above diagonal

resistance now you can also look for

different uh a couple of different

patterns on the RSI you can look for a

double bottom you can look for a triple

bottom what if you saw a double bottom

and you saw it break through a downtrend

at the RSA yeah some people might take

kind of those pieces of information and

put them together to say yeah I think

that could be a strong entry now on

Nvidia quite honestly we can look up we

can see the trend is bullish the red

line I left up there's a  period

moving average it is way above there

right now okay okay and so it shouldn't

surprise us that okay down in the RSI

it's making these higher highs and

higher lows okay that's something of not

it did cross below  for half of a

second couple days ago I shouldn't say

half a second it crossed below it but it

didn't go below it very far and then it

just went running back above now what we

might look for here is if the price

keeps making higher highs and higher

lows but the

RSI and uh let me get my little marker

here bring it on from

my thing

here so if we're seeing that it's making

higher highs and higher lows here in the

price we might look for the oscillator

to do what make lower lows and lower

highs and that could be that's something

we call a Divergence and it's like a

yellow flag waving

okay it's hey pay

attention what we're seeing in the RSI

does not complement or does not act the

same as what we're seeing on price and

that can mean that A change is imminent

some people really like to wait for the

price to confirm it because we could see

a Divergence for a longer period of time

and nothing happens price just does is

consistent and so some people want to

see that confirmation of price

so we've got Crossing above  as a

potential entry we've got breaking

Crossing and breaking a diagonal

resistance line could be used as a

potential entry signal and then another

thing to watch for okay is what we

call what do we call this let me uh

change something here our something we

look for called a failure swing

like a failure swing what is this a

failure swing it kind of goes along with

the idea of a Divergence in the sense of

what direction are we making higher

highs and higher lows I'm going to show

you a stock here we're going to go to

into

it and as we look it into it we can see

it had been upward trending for a while

downward trending as it's downward

trending we're seeing lower Peaks here

on the

RSI then we I'm going to zoom in here

apparently whatever they said at

earnings was not happy to the market and

it sold off right when the RSI goes

below

and it fails to make a lower

low which in this case it didn't make a

lower low in fact it made a made a

higher low on the RSI we will call that

a a swing

failure basically on the bottom side

okay so if we see that would that be an

indication that maybe it could become

bullish it could be but again some might

wait for confirmation of that you know

as we look at what the price is doing

here even though we saw this failure

swing because it didn't create a lower

low below  actually created a higher

uh higher Point here and here's actually

the the next low what it was yesterday

and that definitely is above  okay I

think I was pointing at the wrong spot

on the Line This is really where we see

that that it bounced there and then

today of course bounced up instead of

going down below  again and making a

lower point there now if you look at

this some people might go

well okay I see that failure swing that

can be a bullish indicator but I'm not

so sure that I'm on board with it I'm

not so sure I want to take this risk

when you see price that really hasn't

changed Trend we're not seeing higher

highs and higher lows here not at all if

I were to put on a -day moving average

it would still be downward trending so

at the beginning I said some of you

might not feel

comfortable maybe trading counter Trend

by solely using an oscillator that's

going against what the trend is doing

okay now if somebody sees maybe some

different pieces of information for

example

what if we were to see a a double bottom

down here on the RSI that maybe it came

down it's below  maybe goes down about

the same amount that it did

here and we see it break up through

there then some people might say okay

that's a little bit more information

that might lead me to say maybe I will

take on a position here with the idea

that you think that it is

reversing if you think this thing is

still dropping then you would not do it

okay you would say no I want a little

bit more information that's pointing

that direction we might want to see a a

a Divergence now one another stock here

O'Reilly let's take a look at O'Reilly

here O'Reilly had been upward trending

this a fairly expensive stock here but

it been upward trending made a nice

little Peak here that was in March

but then it started to have some

weakness before the

earnings and you can see I have drawn a

trend line here there could be a couple

of trend lines somebody might want to

draw I started with this peak here but

you could start with this peak and maybe

catch the tops at a little bit different

angle all right somebody could just as

well have drawn the trend line that

second spot that I just drew it okay

connecting different peaks in this case

as we look at this and I'm going to

maybe get rid of the one I just drew uh

if we look here does it look like maybe

there could be a double bottom here on

this

RSI okay well maybe right we can see it

was low down here and then it gets a

similar low let me give you the value

here this is

this one is  so pretty close

and then this one here is  so  and

 to me are really really close

that we could draw in here a double

bottom formation and then if it breaks

across that as well so we see the cross

Above This diagonal resistance on the

RSI and we see it coming out from below

the 

area okay then some might say hey if

this if this gives us some confirmation

maybe I'll enter into a smaller position

than what I might normally do okay uh in

our class we have $ that we willing

to risk on a trade and so we might say

you know what we'll do a third of that

we will risk

and put on a smaller position and

then if the stock continues to act more

bullishly then we might say okay let's

put on another third of a position okay

or you could you do it by quarters

whatever is comfortable to you to say

hey I'm just going to do a partial

position but we would want to look at it

as though possibly that it is reversing

okay that the trend is reversing even

though we don't have a lot of evidence

of that yet now here on the

price might we start to see a double

bottom

here so we see that in conjunction with

the RSI some people might go well if it

gets past this peak here let's go on put

on a

trade all right let me check the chat

here see if there's questions I need to

answer I think you guys are keeping Lee

busy

here all right I think Leah is just

sharing some things here um one def says

can we set an alert for that breakdown

above the

downtrend I'm going to say you could

sort of but you would have to give it a

number okay because I've just drawn this

this line in here there's not

information that whatever that number is

right we don't have it stored anywhere I

can just look on my chart and see I drew

a line there but if you you said you

know got this downtrend going and if it

crosses above a certain area and we

might say okay something above where the

most recent Green Line went right you

might say okay and if if it goes

above  or  or something you feel

comfortable with you could set an alert

for the RSI at that value okay but not

specifically hey do something or alert

if it breaks my trend line does that

make

sense I hope

so uh so the DMI that we set an alert on

earlier was not a study so earlier uh we

set some alerts based on DMI for last

week's trade and for our discussion with

last week's DMI positive and negative

okay let's go ahead

here um

actually we're going to do one more

thing let's go to

KDP CG Dr Pepper my favorite drink Dr

Pepper well it's actually Dr Pepper zero

with cherry we're going to be real

technical about it all right we see the

price making some higher highs and

higher lows in fact today it made

another  we high right there at

what are we seeing going on with

the RSI though

okay the RSI uh had a couple of very

short-term dips below the  but they

just didn't last that long they they

didn't go very low and then it started

making some lower Peaks and so I drew in

using my trend line I drew in kind of

connecting those Peaks and creating a

trend line and what do we here see here

just recently we saw a break of that

diagonal trend line

okay

therefore because of that we are going

to use that as an entry signal on this

stock this one looks a little bit

different than some of the others we've

been looking at the other ones have been

downward trending and we're you know

seeing it maybe just jet above  here

in this case we're going to use the

break of the trend line all right now if

you feel comfortable with the trend of

the stock then you might do a full

position if you didn't feel comfortable

with the trend of the stock or you

thought I'm being a little aggressive

here uh we're just going to do a partial

position okay then maybe you do you know

have risk  for the trade versus 

in this case the -day moving average

is still headed up and so somebody might

feel comfortable doing it because it is

consistent with the trend does that make

sense all right let's do it uh where

would we put a stop loss

here we yeah there's a couple places

somebody might consider but let's go

ahead

here and maybe go a little bit below the

area okay that looks to be where

the horizontal support is and so let's

go down here to say

that's going to be our stop price

so let's figure out our risk here bring

up our calculator current price is$ 

minus our stop of

it's a buck 

per share that we're rolling to risk so

let's take our

divided by $ which really is not

a lot that's saying we could buy 

shares that's a lot of shares at 

bucks a pop almost

uh some people might not feel

comfortable buying that many shares on a

less than $ stock now this is coming

out to , that we would spend if we

bought  shares

some people if our portfolio is ,

might not want to spend more than % in

a position and in this case that would

meet that condition some people might

say I don't want it to be % I maybe

I'm really only comfortable at  and a

half% or % right that they want a lot

more diversification in the in the

portfolio because this is less than

, we're going to go ahead with it

so we're going to trade uh place a trade

we're going to do a buy custom with an

uh

a

stop okay and we will go ahead we'll do

shares on both of these and then our

stop price here we're going to change it

to

and hopefully we'll start lifting

that up as new support areas are

maintained we'll make this is a good

till cancel uh we'll just go ahead and

get filled right now as a day order

remember on the stop uh there isn't a

guarantee of execution price because

it'll trigger that market

order all right I'm just going to make

sure that looks right and it does I'll

go ahead and send it

off all right we're going to watch this

now what what might we use as an exit

signal okay because that's what we would

need to know one if it breaks through

that support but technically we'll be

watching this RSI uh right here we saw

it breakthrough resistance so our

expectation is that it's going to

continue through there and we will look

look for it above  and if the stock or

the RSI comes down below  we might

consider an exit at out Point okay

that's how we're going to use the RSI

it's a very uh I had a lot of details

with this one today so we'll probably

spend a little bit more time on it next

week as well with some additional things

that we can bring into the RSI okay

today we talked about a break of

diagonal resistance with it we talked

about going above the  as a potential

entry and below the  as a potential

exit we talked about

divergences noting that price might be

doing something different than what the

RSI is doing and that being a warning

flag some people like to see

confirmation of price when they see that

warning flag before taking action on it

okay I want you to practice using RSI

this week okay want you to

identify uh if it has some breaks of

resistance I want you to identify it

crosses down below  or crosses up

below  just kind of start being a

little bit aware of this because I the

RSI can be one of those studies that

helps us monitor what we've got going on

all right now I don't think we had a

survey out here today uh if we did I

would encourage you to do that if this

was helpful for you today go ahead and

hit the Thumbs Up Button that'll let

others know that you found this useful

and they might find it useful as well

Lee thank you for helping me out in the

chat appreciate that coming up next is

going to be exploring thinker swim so

those of you that are maybe know thinker

swim Basics want to learn a little bit

more join Brent mors that class he does

a great job with it all right everyone

thank so much we'll see you at the top

of the hour for exploring thinker swim

bye-bye