Waiting for RSI signal to start selling DAX.Hi Traders,
I trade for 8 years and all these years I have been using RSI which is a free indicator which also does not lag. However, I use him with trendlines connecting with higher highs or lower lows so I can see a signal when he breaks this trendline. As you can see the RSI with those trendlines, everytime he breaks those lines it indicates a breakout and this is exactly what I have been doing with the DAX for months now.
At the moment, we are very very close to break a trendline on RSI which will indicate that a top might be in place. However, do not use this tecnique as a signal!!! Use as a alert for you to find other reasons to trade. For example, we can also see that the top touched the 0.786% fib which is a very powerful fib. Also we can see on the daily that we are in the top of a channel.
So with all this reasons together gives us a nice reason to short DAX. I recommend to start trading small, as the market moves in our direction, you can increase your exposure.
Thanks for looking!
Thiago Duarte
@thiagotrader
thiago@duarteinvestmentgroup.com
