Best Gold Trading Signals and Providers

Relative Strength Index – RSI has been explained in detail here at Relative Strength Index – Basic and RSI Strategies. RSI gives investors the confidence to invest. A value above 70% means the market is pretty heated and below 30% means the sell-off of gold has gone too far and is expected to stop. The only issue with RSI is that in a highly trending market RSI can put you out of position too early or make you enter the position too early. Another key use of RSI is to determine whether a cycle is complete because a 5 waves impulse cycle needs to end with momentum (RSI) divergence and a corrective cycle needs to end without momentum (RSI) divergence). One of the companies we researched use this technique with perfection to determine if a cycle is over or not and hence allows trades to maximize their profits and also keeps them from entering too early.

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