Fibs and the RSI
Hello all and welcome once more. While BTC is doing it's thing I want to take some time out to draw your attention to something that you may or may not be aware of... RSI (Relative Strength Index). Now I'm sure most of you know how it works and what it means so i won't waste your precious time giving a run down on that. But did you know the RSI also respects Fib retracements? That's right! Why is this interesting? Because when determining the likely-hood of a movement in a particular direction, a simple trend line or channel won't always give us enough information. Sometimes it can lead us down the wrong path, while we scratch our heads yelling "WHY!!!". By plotting a fib or two over the RSI we can see levels of support or resistance we may not have noticed before, determine the strength a resistance or support has, catch any divergence early as it's easier to see and make better informed decisions overall. I hope you go out and give it a try, it is definitely helpful when you know how to use it! Happy trading :)
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